We examine the effect of the introduction of ridehailing in US cities on fatal traffic accidents. The arrival of ridehailing is associated with an approximately 3% increase in the number of fatal accidents, for both vehicle occupants and pedestrians. Consistent with ridehailing increasing road usage, we find that its introduction is associated with increases in proxies for traffic congestion and with new car registrations. Consistent with a driver quality channel, accident increases are concentrated in ridehailing-eligible vehicles and those with passenger configurations suggestive of ridehailing. Back-of-the-envelope estimates of the annual cost in human lives range from $5.33B to $13.24B. We propose various operational and policy prescriptions for the regulation of ridehailing operations that may help limit such externalities.
ASJC Scopus subject areas
- Strategy and Management
- Management Science and Operations Research
- Industrial and Manufacturing Engineering