Table of Contents
Executive Summary
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- What alternate transportation providers need to know
- Consumers need to be able to trust alternate transportation methods will meet their needs
- Alternate transportation providers need to embrace transparency, especially in regards to their employees
- Where alternate transportation providers can succeed
- Safety, reliability, convenience
- What consumers want and why
Market Factors
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- Healthy consumer finances will be a boon to ridesharing
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- Figure 1: Current financial situation, November 2019
- Consumers remain confident in US economy
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- Figure 2: Consumer Sentiment Index, January 2007-December 2019
- While higher than previous years, gas prices remain steady
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- Figure 3: US gasoline and diesel retail prices, January 2007-December 2019
Key Players – What You Need to Know
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- Uber given go-ahead to operate in Vancouver
- Chicago introduces rideshare tax in effort to combat congestion
- Meet Cruise Origin: the first driverless ridesharing service
- Cabify rideshare created to meet the needs of parents
What’s Happening
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- Public transportation sees first uptick in years
- Should public transportation be free?
What’s Struggling
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- Vancouver, the last major North American city without Uber, finally gets Uber
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- Figure 4: Uber arrives in Vancouver announcement, January 2020
- Uber and Lyft surge prices during Seattle shooting draw criticism
- Chicago implements ridesharing tax to combat congestion
What to Watch
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- Cruise beats Uber and Lyft to driverless ridesharing
- Expect to see more niche ridesharing companies in 2020
Ridesharing around the World
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- Cabify
- Shebah
- HopHop Ride
The Consumer – What You Need to Know
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- Four in 10 consumers haven’t used alternate transportation in a year
- Cheapest rideshare earns consumers’ business
- Shortest travel time isn’t a major selling point for consumers
- Consumers are growing more comfortable with abandoning their cars
- Consumers believe drivers should be provided employees benefits
Ridesharing Overview
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- Four in 10 consumers aren’t utilizing transportation services
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- Figure 5: Usage of transportation services in a 12 month period, December 2019
Attitudes toward Transportation
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- Age and income affect perception of personal vehicle reliability
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- Figure 6: Attitudes toward personal vehicle reliability, by household income, December 2019
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- Figure 7: Attitudes toward personal vehicle reliability, by generation, December 2019
- Urban consumers are more likely to prefer environmentally friendly modes of transportation
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- Figure 8: Preference of transportation modes, December 2019
Factors when Choosing Modes of Transportation
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- Fastest travel time not considered to be a major factor
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- Figure 9: importance of short travel times, December 2019
- Commuters prioritize reliability, safety and convenience
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- Figure 10: Important transportation factors, December 2019
- Parents focus on environmental impact
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- Figure 11: Preference toward environmentally friendly transportation, By parent, December 2019
- Older consumers prioritize convenience
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- Figure 12: Convenience as a transportation factor, by generation, December 2019
Attitudes toward Vehicle Ownership
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- Personal vehicles are still the preferred option for a regular commute
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- Figure 13: Preferred method for commuting, December 2019
- Increased transportation offerings lead to increase in vehicle abandonment consideration
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- Figure 14: Personal vehicle abandonment, year over year, December 2019
- Nearly 20% would prefer not to drive if given other options
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- Figure 15: Consumers who prefer not to drive, by generation, December 2019
Attitudes toward Ridesharing
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- A third of consumers pick their ridesharing service by price
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- Figure 16: Determining factors when selecting a ridesharing service, December 2019
- Some consumers have felt unsafe during a rideshare
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- Figure 17: Usage of transportation services in a 12-month period, December 2019
- Irresponsible business practices aren’t enough to keep Millennials from rideshare services
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- Figure 18: Usage of transportation services in a 12 month period, December 2019
- Consumers believe rideshare drivers are entitled to employee benefits
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- Figure 19: Attitudes toward rideshare employee benefits, December 2019
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – The Consumer
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- Figure 20: Likelihood of purchasing a rideshare subscription, December 2019
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- Figure 21: Attitude toward rideshare subscriptions, by household income, December 2019
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- Figure 22: consumer desire to select rideshare driver , December 2019
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