Sharing when stranger equals danger: Ridesharing during Covid-19 pandemic

Using data collected from one of the most popular city-to-city ridesharing platforms, we study how individual drivers respond to an increased health hazard. We analyze the impact of the Covid-19 outbreak on the level of mobility and the price of ridesharing. We show a higher level of prices and a larger price dispersion in areas with increased health risk. We exploit daily discontinuities in the reporting of Covid-19 cases to argue that the variation in prices is due to drivers' perception of health risks. Our results suggest that a decision-maker promoting ridesharing as a solution to intercity travel should account for the impact of the perceived health risks on prices and find ways to ensure access.