Looking at the important results of a new rideshare research

Every year, researchers conduct a survey about rideshare drivers. They ask people to answer questions such as which platforms they use, how often they drive, how much money they earn etc.

We are now going to take a look at a summary of the findings of the 2017 survey and examine what these findings mean for the rideshare industry.

The year 2017 has pretty eventful for the rideshare market. Google and Lyft formed a partnership in order to work on autonomous cars whereas Uber’s CEO, Travis Kalanick was forced out of the company as a result of the various criticisms the company faced regarding sexual harassment allegations, hostile working environment and its Greyball and Hell programs. Additionally Lyft has kept on expanding to new markets.

Even though all of us have access to news regarding the various rideshare companies and their operations, it is still not easy to fully comprehend the multiple aspects of the rideshare industry. Thankfully surveys like the one mentioned before give us all the information we need.

The survey we are going to look at used a sample of 1500 respondents from all around the United States. The respondents had to give an answer to questions such as : whether men are more willing and likely to work full time comparing to women, how many drivers use only one app, are men more willing to work for Uber comparing to women, whether younger drivers are more likely to drive longer hours comparing to older drivers.

Now lets examine the findings. The first finding is that only a small number of drivers continue to use only one app after six months. Many drivers choose to move from one app to the other for various social, personal and economical reasons. However by taking closer look at the results we can see a pattern forming. Within the first 3 months of driving, 47% of the people asked said that they were using only app whereas only 34% said that they were also using a second one. However between the 4 and the sixth month of driving 50% of the people asked said that they were using a second platform whereas 14% of the respondents said that they had already downloaded a 3rd platform. Only 32% of the people asked said that they are using only one. From 6 months and beyond the number of people using only 1 app keeps on declining whereas the number of people using 3 or more is steadily rising. By taking into account only Lyft and Uber we can see that it is extremely possible that these drivers will eventually download both since 61% of the respondents said that they are using both apps. There are many reports of people saying that they have seen cars with the Uber and Lyft sticker on at the same time. However the time frame in which drivers move from one platform to the other is not certain. Based on past research we can see that it can be very harmful for any driver to switch from one competitive service to the other because they loose the particular benefits an exclusive driver for a company has. on potential reason for people moving from app to the other quickly and easily might be the low entry barriers.

The second finding is that Uber is still considered the “Gateway Platform”. Even though there are a tone of rideshare apps Uber is usually the first app a new driver will choose to use. When it comes to Lyft, only 11% of full time drivers are driving only for Lyft. For full-time drivers only 30% are only using Uber and not Lyft whereas only 35% of part time drivers do the same. 54% of part-time and 56% of full-time drivers mentioned that they drive for both. However these results can be bad news for both companies. They are bad for Lyft since it is always going to be considered the second best platform whereas they put a hold on Uber’s aspirations to increase its fare and start reporting profits at some point.

The third finding suggests that even though women and men work the same, the amount of money they earn is different.

The fourth and final finding is that even though most drivers choose to work part time, those who are more than 50 years old are more likely to work on a full-time basis comparing to their younger counterparts. This aged group reported working 41+ hours a week. However on average most drivers choose to work somewhere between 10 to 20 hours a week.

To conclude we are slowly starting to get a better idea of the people in the ridesharing industry and of the platforms they prefer to use.