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The Cost of Convenience: Ridehailing and Traffic Fatalities

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  • John M. Barrios
  • Yael Hochberg
  • Hanyi Yi

Abstract

We examine the effect of the introduction of ridehailing in U.S. cities on fatal traffic accidents. The arrival of ridehailing is associated with an increase of approximately 3% in the number of fatalities and fatal accidents, for both vehicle occupants and pedestrians. The effects persist when controlling for proxies for smartphone adoption patterns. Consistent with ridehailing increasing congestion and road usage, we find that 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, ridehailing’s arrival is also associated with an increase in new car registrations. These effects are higher in cities with prior higher use of public transportation and carpools, consistent with a substitution effect, and in larger cities. These effects persist over time. Back-of-the-envelope estimates of the annual cost in human lives range from $5.33B to $13.24B.

Suggested Citation

  • John M. Barrios & Yael Hochberg & Hanyi Yi, 2020. "The Cost of Convenience: Ridehailing and Traffic Fatalities," NBER Working Papers 26783, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:26783
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    Cited by:

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    2. Noli Brazil & David Kirk, 2020. "Ridehailing and alcohol-involved traffic fatalities in the United States: The average and heterogeneous association of uber," PLOS ONE, Public Library of Science, vol. 15(9), pages 1-11, September.
    3. Yongwook Paik & Christos A. Makridis, 2023. "The social value of a ridesharing platform: a hedonic pricing approach," Empirical Economics, Springer, vol. 64(5), pages 2125-2150, May.
    4. John M. Barrios & Yael V. Hochberg & Hanyi Yi, 2020. "Launching with a Parachute: The Gig Economy and Entrepreneurial Entry," Working Papers 2020-21, Becker Friedman Institute for Research In Economics.
    5. Deerfield, Amanda & Elert, Niklas, 2022. "Entrepreneurship and Regulatory Voids: The Case of Ridesharing," Working Paper Series 1426, Research Institute of Industrial Economics.
    6. Derrick Choe & Alexander Oettl & Robert Seamans, 2020. "What’s Driving Entrepreneurship and Innovation in the Transport Sector?," NBER Working Papers 27284, National Bureau of Economic Research, Inc.
    7. Fos, Vyacheslav & Hamdi, Naser & Kalda, Ankit & Nickerson, Jordan, 2019. "Gig-Labor: Trading Safety Nets for Steering Wheels," CEPR Discussion Papers 13885, C.E.P.R. Discussion Papers.
    8. Kirk, David S. & Cavalli, Nicolo & Brazil, Noli, 2020. "The implications of ridehailing for risky driving and road accident injuries and fatalities," Social Science & Medicine, Elsevier, vol. 250(C).
    9. Barrios, John M. & Hochberg, Yael V. & Yi, Hanyi, 2022. "Launching with a parachute: The gig economy and new business formation," Journal of Financial Economics, Elsevier, vol. 144(1), pages 22-43.
    10. Sanders, Rebecca L. & Schneider, Robert J. & Proulx, Frank R., 2022. "Pedestrian fatalities in darkness: What do we know, and what can be done?," Transport Policy, Elsevier, vol. 120(C), pages 23-39.
    11. Devi Brands & Joris Klingen & Francis Ostermeijer, 2020. "Hands on the Wheel, Eyes on the Phone: the Effect of Smart Phone Usage on Road Safety," Tinbergen Institute Discussion Papers 20-024/VIII, Tinbergen Institute.
    12. Brands, Devi & Klingen, Joris & Ostermeijer, Francis, 2022. "Hands on the wheel, eyes on the phone: The effect of smartphone usage fees on road safety," European Economic Review, Elsevier, vol. 146(C).
    13. Martin, Rebecca & Xu, Yilan, 2022. "Is tech-enhanced bikeshare a substitute or complement for public transit?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 155(C), pages 63-78.

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    • I00 - Health, Education, and Welfare - - General - - - General
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

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