Citation

Greenwood BN, Wattal S. SSRN eLibrary 2015; 2015(online): e2557612.

Copyright

(Copyright © 2015, Social Science Electronic Publishing)

DOI

unavailable

PMID

unavailable

Abstract

In this work, we investigate how the entry of the driving service Uber influences the rate of alcohol related motor vehicle homicides. While significant debate has surrounded the entry of driving services like Uber and Lyft, limited rigorous empirical work has been devoted to uncovering the social benefits of such services (or the mechanism which drives these benefits). Using a difference in difference approach to exploit a natural experiment, the entry of Uber into markets in California between 2009 and 2013, findings suggest a significant drop in the rate of homicides during that time. Furthermore, results suggest that not all services offered by Uber have the same effect, insofar as the effect for the Uber Black car service is intermittent and manifests only in selective locations. These results underscore the coupling of increased availability with cost savings which are necessary to exploit the public welfare gains offered by the sharing economy. Practical and theoretical implications are discussed within.

Language: en