Long wait times and higher fares are two of the most common reasons passengers switch between rideshare services. A recent passenger experience at LAX illustrates this point:
“We needed a larger vehicle for our rideshare,” he said, “which I knew would cost more. I checked both platforms. There was a 30% price differential between services. The distance I was going came to more than $60. I didn’t have to think twice about going to the less expensive service.”
Rideshare companies can use gig mobility data from Gridwise Analytics to address these challenges and optimize their operations. Our data provides insights into
- multi-apping trends among gig drivers
- airport-specific pricing patterns at major airports like ATL, JFK, LAX, and ORD
- comparisons between pickup and drop-off rides
- how these factors influence passenger satisfaction
Whether you’re a rideshare company executive, an investor, or simply curious about the gig mobility industry, this blog delves into how Gridwise Analytics can impact gig company strategies in today’s competitive market.
Here's what we cover:
Multi-apping trends: Insights from gig driver analytics
Multi-apping is the widespread gig driver practice of accepting rides from more than one gig platform. Drivers choose to multi-app based on personal preferences and money-making strategies.
Some gig drivers multi-app between rideshare services (e.g., Lyft drivers will also take Uber rides, and Uber drivers will also take Lyft rides). Other drivers multi-app between categories, such as rideshare drivers accepting food delivery orders during peak hours for that activity and then moving into rideshare in the later hours of the evening.
What percentage of gig drivers multi-app?
Data insights reveal that a sizable percentage of gig drivers from all major platforms engage in multi-apping.
Although the percentage of drivers from Lyft and Uber who multi-app is constantly changing, a distinct pattern of more Uber drivers engaging in the practice prevailed—until early 2023, when Lyft drivers started to multi-app more frequently. By Q4 2023, more than 55% of Lyft drivers multi-apped, as opposed to about 50% of Uber drivers.
Data has also revealed that over 60% of Uber Eats and Shipt gig drivers multi-apped. In the case of Uber Eats, drivers often multi-app because they can easily transition from one service to another on the app. A driver for one of the Uber services can also drive for the other without additional applications or requirements; working for both Uber and Uber Eats can be done from the same app on the gig drivers’ side. Multi-apping through other services, however, requires that the driver have multiple apps open, which can be complicated to manage.
Multi-apping rates between Lyft and Uber
In 2019 we saw that around 10% more Lyft drivers were multi-apping than Uber drivers. This percentage changed drastically in Q1 2022 when analysis showed Lyft drivers started to multi-app with even greater frequency. The number of Uber drivers that multi-apped dropped by more than 10% at the start of 2022. As of Q1 2024, Lyft rideshare drivers were multi-apping with the Uber platform at about 55%, while Uber drivers were multi-apping on the Lyft platform at a rate of just over 25%.
Airport-specific rideshare trends and pricing patterns
Airport rideshare activity presents unique challenges and opportunities for both drivers and companies. Our analysis of gig driver data from four major US airports—ATL (Atlanta), JFK (New York City), LAX (Los Angeles), and ORD (Chicago O'Hare)—reveals distinct patterns in pricing, profitability, and driver incentives.
These insights, drawn from Q4 2023 data with some projections into 2024, highlight the complex dynamics of airport rideshare services and their impact on both driver and passenger experiences.
Airport trip bonus insights
A review of Uber rideshare activity during Q4 2023 revealed that JFK airport has the highest fares for pickups and drop-offs. The only time frame when JFK fares approached equality with other airports was at night, from 9 pm to 6 am. O’Hare Airport in Chicago edged out LAX for the lowest rates.
In 2024, we see new ranges and patterns changing as the year progresses. Our granular, unbiased data allows us to predict future patterns based on years of market insights. Contact our team here.
A review of bonus activity during Q1 2023 at the same airports revealed that Lyft pays higher bonuses per trip on airport pickup and drop-off rides than Uber.
We can speculate that Lyft’s motivation for paying these higher bonuses is to increase driver loyalty, thus guaranteeing a more reliable pool of drivers to reduce their passenger average pickup time. When passenger pickup time is reduced, we can hypothesize that this results in a higher passenger satisfaction rate and could correlate to passenger loyalty.
Airport take rate insights
“Take rate” refers to the difference between what the passenger pays for the ride and what is left for the rideshare company after they pay the driver, plus any fees or other charges associated with the ride (some airports now charge a fee for every rideshare drop-off or pickup, which gets added to the passenger’s rideshare charge).
JFK pickup and drop-off take rate insights
Drop-offs were more profitable than pickups at all the airports reviewed, but JFK showed the widest variation between pickup and drop-off fares in Q4 2023. The average take rate at JFK was 28.4%.
LAX pickup and drop-off take rate insights
While showing less variance than JFK, LAX also had a bigger difference between pickups and drop-offs than other airports. Afternoons between 12 pm and 6pm during this time have a higher take rate.
O’Hare pickup and drop-off rate insights
O’Hare in Chicago shows more equity between pickup and drop-off activity. Pickups and drop-offs have similar take rates in the morning (6 am to 12 pm) and early afternoon (12 pm to 3 pm), with a slight difference of about two percentage points. Differentials are highest between 3 pm and early morning hours.
The best take rates are in the morning and early afternoon, averaging 35.7%.
Atlanta pickup and drop-off take rate insights
Rideshare pickups are more profitable in Atlanta than in other airports, with mornings and early afternoons showing the greatest profitability. Drop-off rides also exhibited higher profitability in Atlanta than in other airports.
Rideshare pickups are more profitable in Atlanta than in other airports, with mornings and early afternoons showing the greatest profitability. Drop-off rides also exhibited higher profitability in Atlanta than in other airports.
Would you like to learn more about the gig driver economy? Our 2024 Gridwise Gig Mobility Report offers numerous insights and data on gig workers, rideshare, food delivery, and other facets of the gig economy.
The impact of airport rideshare insights on passenger experience
1. Pricing and cost efficiency
Analytics show that airport rides often have variable pricing depending on the time of day and location. For example, JFK Airport has the highest fares for pickups and drop-offs, particularly outside night hours, whereas O’Hare in Chicago has the lowest rates.
Understanding these trends allows rideshare companies to adjust their pricing strategies to offer more competitive rates, which can attract cost-sensitive passengers.
2. Wait times and service availability
Competitive bonuses per trip for airport rides could ensure a more reliable pool of drivers. This strategy can lead to shorter wait times for passengers, enhancing their overall experience.
Many drivers engage in multi-apping, leading to longer passenger wait times if drivers regularly switch between platforms. Gig companies can ensure consistent service availability by addressing multi-apping through better incentives and loyalty programs.
3. Profitability and service quality
The profitability of pickups and drop-offs varies by airport. For instance, Atlanta shows the highest pickup profits, while JFK exhibits the widest variation between pickup and drop-off fares. By understanding these profitability trends, rideshare companies can optimize their operations to ensure high-quality service where it is most needed, thereby improving passenger satisfaction.
4. Tailored bonuses
Different airports exhibit unique patterns and can benefit from location-specific strategies. LAX, for instance, has higher take rates in the afternoons, while O’Hare shows more equity between pickup and drop-off activity in the mornings and early afternoons.
Tailoring bonuses and surge pricing to these trends can help rideshare companies more effectively meet passenger expectations by ensuring they have sufficient driver supply.
5. Predictive analytics
Granular, unbiased data allows companies to predict future patterns based on historical insights. This predictive capability enables rideshare companies to prepare for and meet passenger demands efficiently, ensuring a smoother and more satisfactory experience.
By leveraging these insights from gig driver analytics, rideshare companies can make informed decisions that enhance pricing strategies, reduce wait times, improve service quality, and tailor their offerings to specific airport trends, contributing to higher passenger satisfaction.
The value of granular data and unbiased insights for rideshare platforms
Passengers will continue to evolve into more savvy users of their rideshare services. Rideshare passengers are well aware of surge pricing and often take steps to avoid those extra surcharges. They can compare prices from providers within seconds.
Through careful analysis of this data, rideshare companies can develop pricing strategies and bonus structures that attract passengers and keep drivers happy and loyal to their platform. By developing strategies based on real-world driver data, gig platforms have the potential to improve their profit margins sustainably.
Gridwise Analytics: An unbiased source of comprehensive gig economy insights
Rideshare and delivery are highly competitive services. Passengers can quickly compare prices and wait times on their phones and select companies based on arrival time or cost. Gridwise Analytics insights give companies reliable data for making decisions that allow them to retain highly competent and loyal drivers and determine pricing strategies that passengers find attractive and economical.
Have a look at these articles to discover further insights:
