The Cost of Convenience: Ridesharing and Traffic Fatalities

58 Pages Posted: 26 Oct 2018 Last revised: 19 Mar 2019

See all articles by John Manuel Barrios

John Manuel Barrios

Washington University in St. Louis - Olin Business School; National Bureau of Economic Research

Yael V. Hochberg

National Bureau of Economic Research (NBER); Rice University - Jesse H. Jones Graduate School of Business

Hanyi (Livia) Yi

Boston College - Carroll School of Management

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Date Written: March 17, 2019

Abstract

We examine the effect of the introduction of ridesharing services in U.S. cities on fatal traffic accidents. The arrival of ridesharing is associated with an increase of approximately 3% in the number of motor vehicle fatalities and fatal accidents. This increase is not only for vehicle occupants but also pedestrians. We propose a simple conceptual model to explain the effects of ridesharing’s introduction on accident rates. Consistent with the notion that ridesharing increases congestion and road use, we find that its introduction is associated with an increase in arterial vehicle miles traveled, excess gas consumption, and annual hours of delay in traffic. On the extensive margin, ridesharing’s arrival is also associated with an increase in new car registrations. We find weaker increases in accidents related to drunk driving. These effects are higher in cities with prior higher use of public transportation and carpools, consistent with a substitution effect, and in larger cities and cities with high vehicle ownership. The increase in accidents appears to persist—and even increase—over time. Back-of-the-envelope estimates of the annual cost in human lives range from $5.33 billion to $13.24 billion per year.

JEL Classification: I0, O3, R4

Suggested Citation

Barrios, John Manuel and Hochberg, Yael V. and Yi, Hanyi, The Cost of Convenience: Ridesharing and Traffic Fatalities (March 17, 2019). Chicago Booth Research Paper No. 27, Available at SSRN: https://ssrn.com/abstract=3259965 or http://dx.doi.org/10.2139/ssrn.3259965

John Manuel Barrios (Contact Author)

Washington University in St. Louis - Olin Business School ( email )

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Yael V. Hochberg

National Bureau of Economic Research (NBER) ( email )

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Rice University - Jesse H. Jones Graduate School of Business ( email )

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Hanyi Yi

Boston College - Carroll School of Management ( email )

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Chestnut Hill, MA 02467
United States

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