Do Ridesharing Services Increase Alcohol Consumption?

67 Pages Posted: 13 Nov 2019 Last revised: 2 Mar 2021

See all articles by Keith Teltser

Keith Teltser

Georgia State University

Conor Lennon

University of Louisville

Jacob Burgdorf

affiliation not provided to SSRN

Multiple version iconThere are 2 versions of this paper

Date Written: December 30, 2020

Abstract

Recent studies suggest ridesharing services, such as Uber and Lyft, may reduce instances of intoxicated driving. However, such services may reduce the costs, and thus increase the frequency and intensity, of drinking activity. To examine whether ridesharing affects alcohol consumption, we leverage spatial and temporal variation in the presence of Uber's taxi-like service, UberX, across the United States. Using self-reported measures of alcohol consumption in the past 30 days among individuals aged 21 to 64, we find that UberX is associated with a 3.6% increase in number of drinks per drinking day, a 2.7% increase in drinking days, a 5.4% increase in total drinks, a 4.3% increase in the maximum number of drinks in a single occasion, and a 1.3% increase in those who report drinking any alcohol. For certain groups, such as males, individuals aged 21-34, and students, UberX is associated with even larger increases in drinking. For example, among those aged 21-34, total drinks increase by 7.4% and binge drinking instances increase by 9.5%. We also find that the marginal impact of Uber on drinking is larger in areas that have weaker public transit. Using administrative employment data, we find that some of the additional alcohol consumption is occurring at bars. Specifically, we estimate that UberX is associated with a 3.5% increase in employment and a 3.7% increase in total earnings among workers at NAICS-designated “drinking places.”

Keywords: Ridesharing, Uber, Alcohol Consumption, Binge Drinking, Drinking Places

JEL Classification: I12, I18, D12, L83, L91, R41

Suggested Citation

Teltser, Keith and Lennon, Conor and Burgdorf, Jacob, Do Ridesharing Services Increase Alcohol Consumption? (December 30, 2020). Journal of Health Economics, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3484845 or http://dx.doi.org/10.2139/ssrn.3484845

Keith Teltser (Contact Author)

Georgia State University ( email )

P.O. Box 3992
Atlanta, GA 30302-3992
United States

HOME PAGE: http://sites.google.com/site/kteltser

Conor Lennon

University of Louisville ( email )

Louisville, KY 40292
United States
5028527773 (Phone)

Jacob Burgdorf

affiliation not provided to SSRN

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