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Alternate Transportation - US - February 2020

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
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 
Healthy consumer finances will be a boon to ridesharing
Figure 1: Current financial situation, November 2019
Consumers remain confident in US economy
Figure 2: Consumer Sentiment Index, January 2007-December 2019
While higher than previous years, gas prices remain steady
Figure 3: US gasoline and diesel retail prices, January 2007-December 2019
KEY PLAYERS – WHAT YOU NEED TO KNOW 
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
Public transportation sees first uptick in years
Should public transportation be free?
WHAT’S STRUGGLING
Vancouver, the last major North American city without Uber, finally gets Uber
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
Cruise beats Uber and Lyft to driverless ridesharing
Expect to see more niche ridesharing companies in 2020
RIDESHARING AROUND THE WORLD
Cabify
Shebah
HopHop Ride
THE CONSUMER – WHAT YOU NEED TO KNOW 
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
Four in 10 consumers aren’t utilizing transportation services
Figure 5: Usage of transportation services in a 12 month period, December 2019
ATTITUDES TOWARD TRANSPORTATION
Age and income affect perception of personal vehicle reliability
Figure 6: Attitudes toward personal vehicle reliability, by household income, December 2019
Figure 7: Attitudes toward personal vehicle reliability, by generation, December 2019
Urban consumers are more likely to prefer environmentally friendly modes of transportation
Figure 8: Preference of transportation modes, December 2019
FACTORS WHEN CHOOSING MODES OF TRANSPORTATION
Fastest travel time not considered to be a major factor
Figure 9: importance of short travel times, December 2019
Commuters prioritize reliability, safety and convenience
Figure 10: Important transportation factors, December 2019
Parents focus on environmental impact
Figure 11: Preference toward environmentally friendly transportation, By parent, December 2019
Older consumers prioritize convenience
Figure 12: Convenience as a transportation factor, by generation, December 2019
ATTITUDES TOWARD VEHICLE OWNERSHIP
Personal vehicles are still the preferred option for a regular commute
Figure 13: Preferred method for commuting, December 2019
Increased transportation offerings lead to increase in vehicle abandonment consideration
Figure 14: Personal vehicle abandonment, year over year, December 2019
Nearly 20% would prefer not to drive if given other options
Figure 15: Consumers who prefer not to drive, by generation, December 2019
ATTITUDES TOWARD RIDESHARING
A third of consumers pick their ridesharing service by price
Figure 16: Determining factors when selecting a ridesharing service, December 2019
Some consumers have felt unsafe during a rideshare
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
Figure 18: Usage of transportation services in a 12 month period, December 2019
Consumers believe rideshare drivers are entitled to employee benefits
Figure 19: Attitudes toward rideshare employee benefits, December 2019
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Consumer survey data
Direct marketing creative
Abbreviations and terms
Abbreviations
Terms
APPENDIX – THE CONSUMER 
Figure 20: Likelihood of purchasing a rideshare subscription, December 2019
Figure 21: Attitude toward rideshare subscriptions, by household income, December 2019
Figure 22: consumer desire to select rideshare driver , December 2019

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