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Research Outline
Prepared for Grant B. | Delivered February 23, 2020
Ride-sharing market: Fuel Costs
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Goals
To determine the number of ride-share/ride-hail cars that are operating in the US, how much fuel they consume, and how it is expected to grow over the next 5 years.
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Early Findings
The Guardian has reported that there are currently around
900,000
U
b
e
r
drivers in the US.
Since
U
b
e
r
represents
54.28%
of all ride-share drivers in the US as per
S
t
a
t
i
s
t
a
, we can estimate that the total number of ride-share drivers in the US to be around 1.66 million (900,000/0.5428). This is assumed to equate to the number of ride-share cars in the US.
A report summary from Markets and Markets shows that the growth rate (CAGR) of the US ride-sharing market is
15.9%
.
According to a working paper from MIT, ride-hailing drivers averaged
$200
per month on fuel costs. The average spending on fuel is
$0.30
per mile.
Based on the above findings, we can estimate the annual cost of fuel for ride-sharing/ride-hailing drivers in the US to be $3.98 billion (1.66 million*200*12 months).
At a CAGR of
15.9%
(fuel costs remaining unchanged), the spending on fuel by ride-share drivers in 2025 will be around $8.3 billion ($3.98 billion*1.159^5).
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