.. UBER The Driver Roadmap Where Uber Driver?Partners Have Been, And Where They?re Going Benenson Strategy Group Research Highlights …And Uber is an attractive option. Uber attracts driver-partners from a wide range of backgrounds… • 59% were working at least one full-time job before they came to Uber. Just 8% were unemployed. • 36% of driver-partners weren’t even looking for a job before signing up with Uber. Most of those looking for a job had been looking for less than 2 months. • Among Uber driver-partners who previously drove taxis, 88% no longer drive with another taxi company. • Half drove for a living at some point in their lives. • T here is great age and racial diversity. • Driver-partners are mostly male, though the percent of females is higher than typically seen in the transportation industry. 78% ARE SATISFIED WITH THEIR EXPERIENCE DRIVING ON THE UBER PLATFORM Uber is significantly improving driver-partners’ financial situations… • 71% report their income is better since signing up with Uber. • Perhaps even more importantly in this age of wage stagnation, 57% expect their income to increase now that they use Uber – compared to just 38% who saw incomes rise in their previous jobs. • Among those who also still drive directly for a taxi, ride-sharing or black car company, 49% make more when on the Uber platform and 29% make about the same. …Ultimately, Uber is what driver-partners need it to be. We divided driver-partners into four distinct segments: 12% • 73% of driver-partners would rather have a job where you choose your own schedule and are your own boss, than a steady 9-to-5 job with some benefits and a set salary. • 76% of driver-partners say earning more income is a major reason to use Uber. • 63% use Uber to have more flexibility so they can balance work and family. 18% NEW REGULARS No previous prodriving experience and now driving uberX >30 hrs/week CROSSOVERS uberX driver-partners who previously drove taxis or black cars 52% 18% PART-TIMERS No previous prodriving experience, and now driving uberX <30 hrs/week THE PROS Currently drive UberBLACK New York, NY Los Angeles, CA Washington, DC Denver, CO www.bsgco.com Driver Segments 18 % THE PROS Currently drive UberBLACK 18 % CROSSOVERS uberX driver-partners who previously drove taxis or black cars BASIC DEMOS DIFFERENTIATING ATTRIBUTES • Nearly all male • Middle of the pack on age: 66% 30-49 • 66% less than college education; 34% college or higher • 55% drive more than 30 hrs/week on platform • Longest-serving cohort: 61% been with Uber >6 months •F amily men: 6 in 10 have kids, 1 in 4 support parent/ spouse’s parent • Nearly all male • Skew older: 38% over 50 • 60% less than college education; 40% college or higher • 10% veterans • New-ish arrivals: 70% have been with Uber <6 months .• F amily men: 6 in 10 have kids, 1 in 5 support parent/ spouse’s parent • 1 in 5 worked in Arts & Entertainment before Uber • 9% veterans • 1 in 5 worked as a delivery person • More likely than others to say: 1) they drive to maintain steady income because other sources unstable, and 2) like meeting/talking with new people 12% NEW REGULARS No previous pro-driving experience & now driving uberX >30 hrs/week • Skew older: 39% over 50 • Just 26% have kids • 42% less than college education; 58% college or higher 52% PART-TIMERS No previous pro-driving experience & now driving uberX <30 hrs/week MOTIVATIONS 44% <12 hrs/week 35% 12-19 hrs/week 21% 20-29 hrs/week • Youngest cohort: 60% under 40 • Most female cohort, at 21% female • 47% less than college education; 53% college or higher New York, NY Los Angeles, CA • Tend to be shortterm: 6 in 10 came on in past 3 months • 75% have other jobs besides Uber • Most common previous industries: health care (10%), hospitality (12%), business services (12%) Washington, DC Denver, CO • More likely to have been actively looking for a part-time job, and that’s what they found • 8% were students when started driving uberX • 4 0% drive to pay for a specific thing (car, vacation, student loan) www.bsgco.com Life Before Uber Uber attracts many full-timers… …and even many who weren’t looking for a job 49% working 1 full-time job 10% working multiple jobs, at least one full-time not actively looking 26% working 1 or more part-time jobs 7% student 2% stay-at-home parent were actively looking 3% retired 8% unemployed AMONG THOSE LOOKING... Uber fills in the gaps: 1 in 5 of those who were previously working were employed in a “temporary job, like an entertainment production or a construction gig.” Were looking for a new job for: Less than 2 months.................................. 50% 3 to 6 months............................................ 25% 6 months or more..................................... 24% Driver-partners come from a variety of backgrounds Nearly half drove for a living at some point in life, some in more than 1 way 14% Taxi 20% 10% 15% Black car, limo or other for-hire car service Another ridesharing platform Delivery service (non-passenger) Industry before Uber: Job category before Uber: 19% TRANSPORTATION HOSPITALITY MANUFACTURING HEALTH CARE White-collar professional or managerial 22% Other 10% BUSINESS 30% 9% 26% 8% Service sector 14% Blue collar worker 7% New York, NY 8% Los Angeles, CA Washington, DC Denver, CO www.bsgco.com White-collar administrative or clerical Their Bottom Line Driver-partners and Income Driver-partners report that Uber boosts their income, financial security... 71% BETTER ...And on average, driver-partners make $19 per hour. 61% BETTER 17% SAME 28% SAME 11% WORSE $19 11% WORSE FINANCIAL SECURITY INCOME average hourly earnings Major reasons they work with Uber They finally feel some chance of getting ahead THEN said their income increased in the few years before signing up with Uber 18% say declined, 43% say same 76% NOW 38% 57% say “earning more income to better support myself or my family” expect their income to increase now that they are driving with Uber 14% say declined, 30% say same 51% say “maintaining a steady income because your other sources of income are unstable or unpredictable” Uber rarely the sole source of income 25% 36% 25% 41% 21% 30% 50% 12% 63% 39% 33% Your only personal source of income 49% A significant source of personal income say “to have more flexibility in my schedule and balance work with my life and family” 38% A supplement but not a significant source of personal income Uber is what they need it to be 62% of people who lease/ finance their car use Uber to help with car payments 45% of parents use Uber income to pay for childrelated expenses 28% of people under 30 use Uber to pay student loans Driver-partners spend Uber income on: Monthly bills....................................... 71% Saving for emergencies.................... 23% Car payments.................................... 49% Paying medical bills........................... 20% House payments............................... 31% Student loan...................................... 19% Treats for yourself/family................ 27% Saving for a big purchase................. 9% Expenses for your children............. 25% Saving for retirement....................... 9% New York, NY Los Angeles, CA Washington, DC Denver, CO www.bsgco.com When Professional Drivers Go Uber… Among people who drove taxis before Uber, Many past transportation industry workers choose to switch completely over to Uber 88% now drive with the Uber platform instead of another taxi company Uber Partners Who Previously Drove Taxis Among Uber driver-partners who came from the taxi world... (small sample size (N=93) so results are directional only) Among people who drove black cars before Uber, 74% 59% now drive with the Uber platform instead of another black car company say their income has increased since joining Uber (24% say it has stayed the same) And 51% 63% Greater income, personal safety big motivators for many pros to drive with Uber believe their income will increase each year – a reason to drive w/ Uber while only 36% were seeing income rise before Uber 64% a reason to drive w/ Uber 71% say “being their own boss” was a major reason to join Uber 73% Average $/hour (on Uber) say they have more control over their schedule now $23 $27 Drove taxis before Uber Drove black cars before Uber New York, NY Los Angeles, CA Washington, DC 15% Denver, CO of all Uber driverpartners also previously worked for a delivery service… and they are among the most satisfied with Uber. www.bsgco.com How Uber Works For Driver-Partners Driver-partners would rather have: 73% 27% A job where you choose your own schedule and be your own boss A steady 9-to-5 job with some benefits and a set salary 42% of women who work with Uber say the need for “part-time or flexible scheduling” is a major reason they drive with Uber 32% say “to earn money while looking for a full-time job” is a major reason they drive with Uber Income isn’t the only thing that’s gotten better Driver-partners are remarkably satisfied – especially New Regulars and Part-Timers Control over your schedule 74% SATISFIED WITH EXPERIENCE DRIVING ON UBER PLATFORM? Income 71% 78% TOTAL Flexibility in work-life balance 70% 72% Sense of financial security 61% 69% Quality of life 58% 88% Sense of confidence 56% 81% Total Better About Same Total Worse New York, NY Los Angeles, CA Washington, DC Denver, CO www.bsgco.com Driver Basics: The Demographics 7% Ethnicity: A very diverse group 18% 7% of driverpartners are veterans Black/African American 15% of driver-partners are currently students Asian or Pacific Islander 16% Age: Spread across the spectrum Hispanic/Latino 37% 30% White/Caucasian 6% Some other ethnic background 26% 24% 19% 7% Prefer not to answer Driver-partners and their familes 50% 46% 25% 18-29 are married 40-49 50+ Education have children financially supporting parents/others relatives Gender 86% 30-39 28% 14% New York, NY Los Angeles, CA no college degree Washington, DC 24% AA degree or trade school Denver, CO 48% college or advanced degree www.bsgco.com Amy Levin, Partner alevin@bsgco.com Los Angeles 530 Wilshire Boulevard Suite 203 Santa Monica, CA 90401 310.775.2601 New York 777 3rd Avenue 33rd Floor New York, NY 10017 212.702.8777 Methodology This research was conducted by Benenson Strategy Group. The interviews took place from December 16th through 22nd, 2014 and included 601 interviews with current Uber driver-partners from 20 markets where Uber operates. All interviews were conducted over the internet. The markets polled included Atlanta, Austin, Baltimore, Boston, Chicago, Dallas, Denver, Houston, Los Angeles, Miami, Minneapolis, New Jersey, New York City, Orange County, Philadelphia, Phoenix, San Diego, San Francisco, Seattle, and Washington, D.C. Washington, DC 1901 Pennsylvania Avenue NW Suite 1000 Washington, DC 20006 202.339.6060 Denver 720 South Colorado Boulevard Suite 500N Quotas and weights were used to ensure the sample is representative of the actual Uber driver population based on the service they use (uberX, UberBLACK etc.), income earned through Uber, average hours worked each week and tenure with Uber. Respondents were given a financial incentive and guaranteed anonymity to further encourage representative participation. Denver, CO 80246 303.928.8400 info@bsgco.com www.bsgco.com The margin of error for the entire data set is ±4.0% at the 95% confidence level. Due to rounding, answer choices may not add up to 100%.