Abstract

Cities are centers of consumption amenities, such as nightlife, food, recreation and retail. The associated consumer value of the city, however, is inseparable from its geography because consumers must travel to consume. Exploiting both the staggered entry across cities and the precise geographic boundary of Uber services for credible identification, we show that the introduction of rideshare technology into a city significantly increased establishment net-entry in industries that specialize in the production of consumption amenities — consumption industries. We provide evidence that the results are driven by an increase in consumer mobility, due to Uber causing a reduction in the economic cost of travel.

Please contact giovanna.tramontano@unibocconi.it or sara.picciallo@unibocconi.it for further information.