Key Facts
App-based rideshare and delivery platforms make significant economic and social contributions across the U.S. Not only do these services allow consumers to travel almost anywhere and order almost anything at the touch of a button, app-based delivery and rideshare provides new income-generating opportunities to drivers, shoppers, and merchants across the country – boosting local economies and contributing to a more prosperous nation.
Impact of app-based rideshare and delivery on the U.S. economy:
In 2022, major app-based rideshare and delivery platforms facilitated an estimated 4.3 billion rides and deliveries across the country ‒ equivalent to over 16 app-based transactions for every U.S. adult.
In 2022, there were an estimated 7.3 million active drivers and delivery partners on major rideshare and delivery platforms.
Individuals drive and/or deliver for an average of 1.9 platforms.
Major app-based rideshare and delivery platforms also indirectly supported at least 2.1 million jobs through spending across the economy.
Within a decade, app-based delivery and rideshare platforms could be worth an estimated $500 billion annually to the U.S. economy.
Impact of rideshare and delivery on workers:
According to app-based workers, schedule flexibility is worth an estimated $11 billion to them each year.
We estimate that app-based workers earn an additional $5.1 billion a year in higher income through app-based work, compared to their next best alternative.
Impact of rideshare and delivery on consumers:
Equal to over 1 billion hours across the population. That is the equivalent of watching 449 million baseball games or listening to Taylor Swift’s entire discography 49 million times back-to-back.
In total, we estimate that delivery and rideshare platforms are producing almost $11.5 billion in consumer surplus - the difference between the price the consumer is willing to pay for a service and the price they actually pay for a service - for U.S. residents each year.
Impact of rideshare and delivery on local communities:
of U.S adults have tried a new restaurant after discovering it through a delivery app.
of U.S. adults have ordered groceries through a delivery app.
of U.S adults use rideshare apps due to a lack of public transportation options.
of riders say these apps help reduce drunk driving.
Foreword
App-based platforms are the linchpin of today’s economy. They save time for consumers, increase visibility for food sellers, and create flexible ways to earn money for drivers and deliverers. We all know it, but until recently, haven’t had a way to show it. That’s why for the first time ever, leading app-based rideshare and delivery companies have come together to highlight this industry’s contributions to the U.S. economy.
This report by Public First highlights how the app-based platform industry is making massive contributions to U.S. gross domestic product (GDP), supporting jobs and earning opportunities, and boosting revenue for local businesses across the country.
Every day, these app-based platforms facilitate millions of transactions between consumers, workers, and retailers in communities, from major metropolitan areas to rural and suburban towns.
Across all fifty states, delivery and rideshare platforms facilitated a remarkable 4.3 billion rides and deliveries by 7.3 million currently active app-based workers. This report shows the industry’s aggregate impact,, driving an annual GDP contribution of over $212
billion in 2022.
Other key findings include:
- Millions of workers turn to app-based platforms for unprecedented opportunities to earn supplemental income on their own terms—to the tune of $5.1 billion a year in higher income.
- Flexibility that workers themselves estimate to be worth approximately worth an estimated $11 billion.
- Local communities receive meaningful economic boosts from app-based platforms, including a $32 billion boost in additional revenue for local businesses and restaurants.
- Consumers appreciate the value in both time saved (over 1 billion hours annually) and consumer surplus ($11.5 billion), not to mention the increasing use of app-based platforms to increase access to healthy food and medical appointments.
I am proud to showcase this industry’s relentless focus on innovation and excited to report the positive benefits that Flex member company platforms bring to communities across America.
Kristin Sharp
Flex - CEO
Introduction
Major app-based rideshare and delivery platforms such as DoorDash, GrubHub, HopSkipDrive, Instacart, Lyft, Shipt, and Uber have been transformative for the millions of individuals and thousands of communities that use them. The app-based economy has radically changed the way that people live, travel, and work, driving economic growth through innovative products and services.
For this report, Flex commissioned Public First1 to quantify for the first time ever the impact of app-based delivery and rideshare across the U.S., as well the benefits enjoyed by the consumers, drivers, and delivery people who use these platforms.
Using data from newly commissioned nationally representative consumer surveys, anonymous surveys of consumers, drivers, and delivery people, as well as new economic modeling, we explore the economic and social impact that major app-based rideshare and delivery platforms have created ‒ and forecast what this might mean for the future.2
Impact of rideshare and delivery platforms on the U.S. economy
App-based rideshare and delivery platforms make significant economic contributions at both a national and local level.
In 2022, we estimate that major rideshare and delivery platforms facilitated 4.3 billion rides and deliveries across the country ‒ equivalent to every adult in the U.S. using an app-based major rideshare and delivery platform at least 16 times over the course of the year. The direct and spillover value associated with this activity helps to ensure the ongoing prosperity of the U.S. economy, with continued projected growth for the sector over the next decade.
In order to fully examine the impact of delivery and rideshare platforms on the U.S. economy, Public First performed a number of calculations to capture the contributions Flex’s members are making.3 This included consideration of:
driver and delivery partner earnings
indirect and induced impact of vehicle use
the induced impact of additional earnings in the economy
the indirect and induced impact of merchant spending
From this analysis, we found that major app-based rideshare and delivery platforms contributed an estimated $212 billion to the U.S. economy in 2022.
The impact is felt most keenly by individuals who choose to drive or deliver across the app-based economy. Drawing from aggregated internal data from major app-based rideshare and delivery platforms, and extensive polling, we estimate that there were 7.3 million active drivers and delivery partners operating on these platforms in 2022. This figure accounts for “multi-apping”, with these individuals driving and/or delivering for an average of 1.9 platforms. That’s 7.3 million individuals taking advantage of flexible earning opportunities facilitated by DoorDash, Grubhub, Instacart, Lyft, Shipt, and Uber.
Individuals who earn through the app-based economy then pass on economic benefits through their spending power. Indeed, we estimate that an additional 2.1 million jobs across the U.S. economy were indirectly facilitated by the likes of vehicle purchases and maintenance.
Most importantly though, is the significant potential for the sector to grow even further in the future. Our future economic impact assessment combined these calculations with third party estimates on revenue growth in the app-based delivery and rideshare sector in the U.S. This modeling suggests that demand for app-based delivery and rideshare will swell over the next decade. We estimate that rideshare and delivery could be worth $500 billion annually to the U.S. economy in a decade.
The impact of app-based rideshare and delivery can be felt across every state
Impact of rideshare and delivery on workers
App-based rideshare and delivery platforms offer individuals the opportunity to earn income when it suits them. They are able to spend time driving and delivering around existing commitments, and are able to quickly earn extra income during a time when money is tight.
Flexibility is important to workers
App-based delivery and rideshare platforms offer workers the convenience of determining when and how they would like to earn. This is entirely flexible around their other commitments.
of workers report that flexibility is an important reason why they choose to do app-based rideshare and delivery work.
of workers agree that app-based rideshare and delivery work provides significantly more schedule flexibility than their past roles.
of workers with children agree that the flexibility provided by app-based rideshare and delivery work makes it easier to balance family and work responsibilities.
Which of the following were important reasons why you chose to do app-based work? Please select all that apply.
According to our polling, 79% of rideshare and delivery drivers combine app-based work with other income, responsibilities, or are retired.
What other responsibilities do you combine with your ride hailing or delivery work, if any? Please select all that apply.
Quantifying the value of flexible, app-based rideshare and delivery work
To further examine the importance of flexible work, we asked whether workers would prefer a hypothetical situation in which they received higher earnings, but had to work fixed hours. According to our survey, exactly half of driver and delivery partners would rather be able to choose their own hours, than receive a 50% increase in earnings with a fixed schedule.
Using this survey data, we then used a linear regression to derive a demand curve and the total driver surplus per user. By understanding the value of the earnings that drivers would forgo to retain flexibility, we were able to estimate that schedule flexibility is worth an aggregated $11 billion to app-based workers each year.
App-based work supports workers’ finances
Drivers and delivery partners told us that their app-based earnings are worth an average of 24% more than their next best alternative source of income. By applying this percentage to sector earning data, we estimate that app-based workers earn an additional $5.1 billion a year in higher income through app-based work, compared to a scenario where they could not drive or deliver through these platforms.
In the face of inflation and rising costs, this ability to generate income through app-based delivery and rideshare platforms offers many individuals the ability to boost their financial security. 54% of workers agree that their earnings through the app-based economy have made them feel more financially secure and 63% of workers said that the additional income provided by app-based work allowed them to cover their rising costs.
Exploring this theme in more detail:
of workers say that app-based work helped them to make money in an emergency situation.
of workers say that additional income provided by app-based work allowed them to save more money in case of emergencies.
of workers say that app-based work has served as a ‘bridge’ between losing one job and starting another.
Impact of rideshare and delivery platforms on consumers
App-based delivery and rideshare platforms help to make life more convenient for everyone. As the app-based economy grows across the country, people benefit from ready access to the places and things they want and need ‒ all at the touch of a button.
The app-based economy helps to save people time, allowing them to focus on doing the things that are truly important to them. Indeed, we estimate that the app-based delivery and rideshare platforms save consumers over 1 billion hours in a normal year. That is the equivalent of watching 449 million baseball games or listening to Taylor Swift’s entire discography 49 million times back-to-back.
Consumers use meal and grocery delivery platforms frequently
Delivery platforms allow consumers the ability to order local favorites and groceries right to their door. According to our research:
of U.S. adults have ordered at least one meal through a delivery app in the last year.
of U.S. adults have ordered groceries through a delivery app in the last year.
Delivery platforms allow consumers the ability to order local favorites and groceries right to their door. According to our research:
order from delivery apps more than once a month.
order from delivery apps every day.
use delivery apps to buy small amounts of groceries when needed.
use delivery apps to buy most of their food.
Which of the following best describes the reason you last ordered groceries using a food delivery app?
App-based delivery platforms are convenient and quick
Delivery app users listed convenience (66%), quick delivery times (41%), and tired of cooking or doing dishes (36%) as the top three most important reasons why they choose to use meal or grocery apps to deliver food.
Which of the following, if any, are important reasons why you order using food delivery apps?
In addition to cutting down time spent collecting and preparing food and clearing up:
of delivery app users agree that app-based meal delivery platforms are more convenient than other forms of takeout.
of all meal and grocery delivery app users found it easy to know how much they will have to pay when placing an order.
Grocery delivery platforms help users with food access
Grocery delivery apps support users that are unable to easily reach a grocery store. Indeed, over a third (39%) of survey respondents live more than a 10 minute journey from their nearest grocery store ‒ rising to over half (53%) of those aged 25 to 34.
In addition, app-based delivery platforms help consumers support their loved ones, when they may be unable to do so themselves. 14% of delivery app users agreed that sending groceries to elderly or vulnerable family or friends was an important reason why they use delivery platforms.
Consumers use rideshare apps across all aspects of their lives
App-based rideshare platforms have become enmeshed in people’s daily lives, helping them to make essential journeys. Indeed, 59% of consumers agreed that rideshare apps are an important transport innovation.
When asked how they use rideshare apps in the last year:
had traveled to or from a work meeting.
had traveled to or from an airport.
had traveled to or from visiting friends or family.
had traveled to or from a party or festival.
had traveled to or from a film, show, sport, or performance.
had traveled to or from a date.
Rideshare platforms also help consumers take care of themselves and their loved ones. In the last year:
had got somewhere in an emergency.
had traveled to or from a medical or healthcare related appointment.
had ordered a ride for elderly or vulnerable family or friends.
Rideshare is reliable, convenient, and safe
We found that reliability was the most important reason why consumers choose to use rideshare apps (91%), closely followed by convenience (90%), and safety (87%).
Which of the following, if any, tend to be important reasons why you choose to use ride hailing apps (e.g. Lyft, Uber)?
Moreover, rideshare apps have now become increasingly integrated with local transport infrastructure – providing “last mile” solutions where public transport options cannot quite reach.
of consumers report that a lack of public transportation options is an important reason why they choose to use rideshare apps.
of consumers we surveyed stated that the nearest public transit stop was 20 minutes or more from their house.
of riders used rideshare apps to connect with public transport.
App-based delivery and rideshare platforms are worth almost $11.5 billion to American consumers.
We wanted to quantify how much consumers value the increased convenience, safety, and reliability of using app-based delivery and rideshare platforms.
One of the most important measures of economic welfare is the “consumer surplus”. This is a standard measure of the consumer welfare created by a product, service, or organization. It is the difference between the price the consumer is willing to pay for a service and the price they actually pay for a service.
The price you pay for something is likely to be at least equal to the minimum value it creates for you – or you would not have chosen to buy it – but there is no reason the value it creates can not be significantly more than this. By totalling the surplus consumer value, we produce a measure called the consumer surplus.
For this research, we asked users how much they would have to be compensated to lose access to rideshare or delivery platforms for the next month. Based on the responses, we estimate that app-based delivery and rideshare platforms are producing over $11.5 billion in consumer surplus for U.S. residents each year.
Impact of rideshare and delivery on local communities
The app-based economy helps to tackle first-and-last-mile challenges across local communities. App-based rideshare and delivery platforms help to broaden the reach of local businesses, contribute to local economic prosperity, and make life easier for consumers.
The app-based economy supports local businesses
App-based delivery and rideshare platforms offer consumers the opportunity to visit new hotspots, try new foods, access everyday essentials, and meet new people. This in turn helps to boost the reach and growth of local businesses. We estimate that app-based rideshare and delivery platforms generate $32 billion in additional revenue for restaurants, grocers and other businesses, by making them easier to discover and access.
According to our polling:
of consumers tend to browse the different options on a meal or grocery app before making a decision.
of meal delivery app users have ordered from a restaurant they had never dined at before via a delivery app.
of meal delivery app users agree that delivery platforms have made it easier to discover new restaurants.
of meal delivery app users agree that delivery platforms increased overall the amount that their household orders from restaurants.
of riders had used a rideshare app in the last year to visit a restaurant or bar.
of riders had used a rideshare app in the last year to go shopping.
Rideshare and delivery apps help people feel safer
Rideshare apps also offer consumers a safe and reliable mode of transport ‒ particularly late at night or if they have been consuming alcohol.
of riders say safety is an important reason why they choose to use rideshare apps.
of riders say that using a rideshare app is often the safest way for them to travel home.
of riders say it would be very or somewhat difficult to find a safe way to travel at night without rideshare apps.
of riders agree that rideshare apps help to reduce drunk driving.
Individuals who order meals, groceries and other essentials through app-based delivery platforms also explained that safety was a key reason for using these services. This is especially the case when it is late at night.
Conclusion
This report illustrates the breadth of the impact app-based delivery and rideshare platforms have had on the U.S. economy, as well as for individuals and their communities. These platforms continue to drive innovations across the country, while offering earning opportunities for millions of people and businesses.
Moreover, our research shows that the reliance on these products and services is only set to grow. In less than a decade, the sector could double the value it generates for the economy at large. There is an exciting opportunity to capitalize on this growth, contribute to the wider prosperity of the country, and help the app-based ecosystem to thrive.
Methodology
For this report, Flex Association (hereafter referred to as Flex) commissioned independent research agency Public First to help quantify the impact of app-based rideshare and delivery platforms for consumers, workers, merchants, and local communities. Our research includes data from a nationally representative consumer survey, an anonymous survey of the workers that use Flex members’ apps, and new economic modeling based on information collected from Flex members.
We used a mixture of methods to explore this impact:
- Public First ran an in-depth nationally-representative consumer poll of 2,000 adults in the U.S. to explore their travel and food ordering habits.
- Public First ran an in-depth poll of 1,034 drivers and delivery partners using the apps of Flex’s member organizations in the U.S. to explore their experiences of these apps.
Public First then created new quantitative models of the economic impact, time saved, consumer surplus, and driver value created by the rideshare and delivery sector in the U.S.
Economic impact
In order to examine the impact of rideshare and delivery platforms on the U.S. economy we carried out a number of calculations to accurately capture the contributions Flex’s members are making.
To calculate the total economic impact Flex members have on the U.S. economy, we considered: worker earnings and the net household spending impact; indirect and induced impact of worker spending on vehicles; and the indirect and induced impact of merchant spending.
The future economic impact assessment combined these calculations with third party estimates on revenue growth in the delivery and ride sharing sector in the U.S.
Impact on local businesses
Our research uses internal data from Flex’s members to explore the impact on and payouts to restaurants and other third-party businesses such as grocery stores. We used external estimates to calculate the proportion of these payouts that are additional.4
Active drivers and delivery partners
We calculated the number of active drivers and delivery partners by combining polling data on the number of app-based services used by each worker with data on the number of active drivers and delivery partners, which was provided by Flex members.
Time saved
Through our consumer polling, we asked consumers how much time recent rides and deliveries took them and how long the next best alternative would have taken. We used the difference to estimate the relative time saved per trip and order. We then multiplied by the total number of annual trips and orders to estimate total time saved per year.
Value of flexibility to workers
As part of the driver and delivery partner survey, we asked the following single discrete binary choice question:
“Imagine you had to choose between one of the following two options for your driving or delivery:
- Fixed schedule but MORE consistent weekly earnings at X% [lower/higher] level than you do now
- Flexibility to choose your own hours, but earning only the same amount per hour that you do now
Which would you prefer?”
In our poll, we asked a series of identical questions, within which X was randomized between 1%, 5%, 10%, 20%, and 50%.
We then used a linear regression to derive a demand curve and the total driver surplus per user, which was then scaled up to a national level using data provided by Flex members on worker number and earnings.
Additional income
To calculate the additional income we asked workers the following question:
“Imagine if app-based work did not exist – in other words, you were not able to earn income through an app or online based platform – how much do you think you would be likely to earn per week with your next best alternative?”
The results from this polling allowed us to calculate the relative alternative earnings. This was then combined with Flex member data on earnings and number of active drivers and delivery partners to calculate the total additional income earned.
Consumer surplus
Following the methodology of Brynjolfsson, Collis and Eggers (2019), we asked adults a single discrete binary choice question in the form:
“Now imagine you had to choose between the following options. Would you prefer to keep access to [rideshare apps/third-party delivery apps] or go without access to [rideshare apps/third-party delivery apps] for one month and get paid $X?”
The price offered was randomized between $1.25, $2.50, $5, $10, $20, $50, $100, $200, and $500.
We then computed a logarithmic regression of the results of this poll to derive a demand curve and the total consumer surplus per user, taking the average as the headline measure. This was then scaled by population to calculate the total consumer surplus.
- Public First is an independent consultancy that works to help companies and organizations develop new policy proposals, better understand public opinion, and model their economic and social impact. Public First is a member of the Market Research Society, and all the modeling for this report was independently peer reviewed.
- Flex members that contributed to this report include DoorDash, GrubHub, Instacart, Lyft, Shipt, and Uber.
- A full methodological note for our calculations can be found at the end of this report.
- https://web.stanford.edu/~leinav/teaching/Collison.pdf