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Take as an example Uber, the ride sharing service industry leader MacMillan and Demos 2015. The company has been studied various times in the past in order to establish a link between its service and a decrease in motor vehicle accidents, specifically, fatalities. This relationship has recently also been successfully evaluated by Greenwood and Wattal, whose paper Show Me the Way to Go Home: An Empirical Investigation of Ride Sharing and Alcohol Related Motor Vehicle Fatalities will be reviewed in this blog post. Overall, the researchers assessed what the exact impact is of ride sharing services on alcohol related motor vehicle fatalities over time and the mechanics behind this specific impact. As a result, they split their research question into two hypotheses. The first was influenced by the platform theory, which states that consumers are willing to pay a premium for ride sharing services, since customers are provided with the certainty of getting a car and knowing when this car will arrive, over the cost of searching for a random taxi and not even knowing whether they will find a taxi. Consequently, the first hypothesis was generated:Implementation of a premium ride sharing service will be associated with a negative and significant effect on the rate of alcohol related motor vehicle fatalities. The second hypothesis followed the rational choice theory, where it is believed that if there is a high availability of ride sharing vehicles, the inebriated individual might still consider their own car as a better option because the premium of the ride sharing service is too high. In other words, the cost of hiring a driver might be too steep in their minds compared to the potential criminal cost of driving their own cars. Thus, the effect of a discounted service, which simultaneously increases the ease of use of transportation and decreases the gap between the cost of being punished for DUI and the cost of booking a driver, had to be assessed:Implementation of a discount ride sharing service will be associated with a negative and significant effect on the rate of alcohol related motor vehicle fatalities. As a representation of the ride sharing service, Greenwood and Wattal made use of information on Uber.

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