Do Ride-sharing Services Increase Alcohol Consumption?
Recent studies show ride-sharing services, such as Uber and Lyft, reduce intoxicated driving. However, ride-sharing may also have negative health effects by increasing alcohol consumption. In this paper, we directly examine the effect of ride-sharing on drinking activity. Our approach leverages variation in the existence and entry timing of Uber’s taxi-like service, UberX, across the United States. Using self-reported measures of alcohol consumption, we estimate that UberX is associated with a 3.1% increase in the average number of drinks consumed per day, a 2.8% increase in number of drinking days per month, a 4.9% increase in the maximum number of drinks consumed on one occasion, and a 9% increase in the prevalence of heavy drinking. When we focus on areas with relatively weaker public transit options, we estimate UberX is associated with a 17.5% to 21.8% increase in instances of binge drinking. Using administrative data, we support our findings by showing that UberX is associated with a 2.4% increase in employment and a 2.3% increase in total earnings at drinking establishments. Our results imply that the net social impact of ride-sharing is more complicated than the existing literature and policy debates suggest.
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November 11, 2019
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November 11, 2019
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