On Monday, the New York Times published an article with a simulation of a rideshare company that included the assertion that “faster pickup times for riders require a greater percentage of drivers to be idling unpaid”: This is simply not true—and had the Times asked us whether it was, we would have explained the reality of what happens when Uber grows in a city: riders enjoy lower pick-up times and drivers benefit from less downtime between trips. It’s a virtuous cycle that is widely acknowledged in business and academia, and which is backed up by data. How is this happening? First, as the number of passengers and drivers using Uber grows, any individual driver is more likely to be close to a rider. This means shorter pickup times and more time spent with a paying passenger in the back of the car. In addition, new features like uberPOOL and Back-to-Back trips have meant longer trips, while incentives to drive during the busiest times and in the busiest locations help keep drivers earning for a greater share of their time online. And that should be no surprise: drivers are our customers just as much as riders. So although the Times article suggests that Uber’s interest is misaligned with drivers’, the opposite is true: it’s in our interest to ensure that drivers have a paying passenger as often as possible because they’re more likely to keep using our app to earn money. (And Uber doesn’t earn money until drivers do.)
Maximizing the efficiency of cars on the road also helps cities use existing infrastructure more efficiently, while minimizing congestion. Indeed, research from 2016 showed that Uber was already more efficient than pre-existing on-demand options, and we’re excited about those trends getting better over time. So how did the Times graphic get it so wrong? While it’s hard to know for sure as its assumptions are not laid out transparently, it appears to suffer from at least two flaws:
So what does it all mean? Happily, evidence to date has shown that all three things can happen simultaneously: we can grow the overall number of people who have access to work with Uber while reducing wait times for riders and reducing the amount of time drivers spend idling. That’s an exciting set of evidence for the future of on-demand transportation.
0 Comments
Leave a Reply. |
CORWIN GROUPLatest News Archives
October 2021
CategoriesBy submitting this form, you provide consent for Corwin Group to email you occasionally with industry news and promotions. You may unsubscribe from these emails at any time.Testimonials & Disclaimer
Important Disclosure: By visiting this site, you agree to be bound by CorwinGroup’s Terms of Use and Privacy Policy. CorwinGroup.com is intended for accredited investors and otherwise qualified investors who understand and accept the risk associated with private investments. Investing in private investments on CorwinGroup involves risks, including, but not limited to market and industry risks, risks related to a specific property, currency fluctuation risk and liquidity constraints. Investments are not bank deposits and are not guaranteed. There is a potential for loss of part or ALL of the investment capital. CorwinGroup does not endorse any of the opportunities that appear on the site, nor does it make any recommendations regarding the appropriateness of particular opportunities for any investor. No correspondence or information provided on CorwinGroup.com or by any representative of CorwinGroup should be construed as a recommendation of a security. Each investor is advised to conduct his/her own due diligence as CorwinGroup does not provide any investment advice, business advice, or tax or legal advice. CorwinGroup is not registered under the Securities & Futures Act or the Financial Advisor’s Act. Neither the Securities and Exchange Commission in the country nor any federal or state securities commission or any other regulatory authority has recommended or approved of the investment or the accuracy or inaccuracy of any of the information or materials provided by or through the website. Please read Corwin’s Terms of Use for more detailed terms and conditions to which users of CorwinGroup are subject. |