Nearly Half of US On Demand Drivers Doubled Hours

INSHUR, a leading global insurance provider in the on-demand economy, released findings from its comprehensive report, Driving the On-Demand Economy in the US. The report surveyed Americans working for popular rideshare and delivery platforms, such as Uber and DoorDash, and highlighted the trends affecting drivers in 2023.

One key insight from the report is that the on-demand economy, boosted by the COVID-19 pandemic, shows no sign of slowing down. The global on-demand economy is forecast to reach $335 billion by 2025, according to research by PwC. INSHUR’s report adds that nearly three in four drivers (73%) now work longer hours than a year ago, with 44% claiming they have doubled their hours.

Interestingly, the gender demographics of the on-demand driver workforce are shifting, with nearly half (49%) of drivers identifying as female. Women also make up 65% of the youngest cohort of drivers aged 18 to 24, yet they are less likely than men to work full-time hours.

“It’s encouraging to see more women participating in the on-demand economy,” says the report, “especially since they bring fresh perspectives and flexibility to the industry.” Although women are a growing force in the sector, the report found that they tend to work fewer hours than their male counterparts, with only 27% driving over 100 hours per month, compared to 34% of men.

The flexibility offered by driving for on-demand apps is a key motivator for many. A striking 66% of drivers state that they chose this line of work specifically for the flexible hours it offers. This autonomy allows them to fit work around other commitments, such as childcare or education, enhancing the appeal of these jobs.

INSHUR’s data points to a growing entrepreneurial spirit among drivers, who are becoming mini-business owners in their own right. As the report notes, “The opportunity to become an independent business owner through driving for on-demand apps has never been more accessible. Drivers are able to work on their own terms and choose their hours, which is a key reason for their growing numbers.”

On-demand driving is also an increasingly attractive option for underrepresented ethnic groups, who have significantly ramped up their hours over the past year. While 39% of White drivers say they have doubled their hours since 2022, this figure jumps to 49% for ethnic minority drivers. In particular, 52% of Black or African-American drivers report a doubling of hours, reflecting the heightened economic need in these communities.

Despite the demands of the job, job satisfaction remains high. A significant proportion of drivers (38%) report being “very satisfied” with their work-life balance, while 74% say they are satisfied overall. Beyond the flexibility, many drivers cite job enjoyment and better pay than other available roles as the primary reasons for staying in the industry.

“I love meeting new people,” says a New York City driver who works primarily for Uber. “It’s one of the perks of the job. I get to interact with a variety of individuals every day, and it keeps the work interesting.” Gender also plays a role in the reasons for choosing on-demand work. Men are 10 percentage points more likely than women to state that pay is the primary reason they entered the sector (36% vs. 26%).

Meanwhile, Dallas drivers stand out as the most likely to cite financial need, with 24% saying they drive because of the lack of other viable employment options. The report also sheds light on the differences between rideshare and delivery drivers. Delivery drivers tend to work fewer hours than their rideshare counterparts, with 52% logging under 50 hours per month. Meanwhile, 20% of rideshare drivers work more than 151 hours per month, compared to 18% of delivery drivers. Although drivers are generally satisfied with their work, they face challenges.

A growing number are concerned about rising insurance costs, which are disproportionately affecting women and younger drivers. Over a quarter (27%) of drivers report that vehicle insurance is a major financial burden. This figure rises to 10% among women who say that more than half of their earnings go toward insurance costs. Unsurprisingly, 26% of drivers believe on-demand platforms should help provide better pricing for insurance, while 25% say these platforms should assist with the insurance purchasing process.

“Insurance is a significant barrier for many drivers,” explains Dan Bratshpis, CEO of INSHUR. “In order for the on-demand economy to survive and thrive, insurers and platforms must work together to offer flexible insurance products that meet the needs of today’s drivers.”

While challenges persist, INSHUR’s report offers hope that the on-demand economy will continue to grow, supported by a flexible, diverse workforce that is increasingly empowered to take control of their financial futures.