PwC research also anticipates the global on-demand economy to surge to US$335 billion by 2025, driven by a significant shift towards at-home purchasing since 2020. INSHUR’s findings reveal that nearly three in four drivers (73%) are logging more hours, with 44% doubling their driving hours compared to the previous year.
Breaking traditional stereotypes, the comprehensive study highlights that almost half (49%) of on-demand drivers are female, with women dominating the 18-24 age group at 65%. Millennials and older Gen Z drivers also lead, with 37% aged 35-44 and 30% aged 25-34. Notably, 74% of drivers report satisfaction with their work-life balance, with 38% very satisfied, underscoring the appeal of flexible, self-directed work.
The report underscores a trend towards increased entrepreneurialism among drivers, with a significant portion using driving as a supplementary income. While 18% of drivers clock over 151 hours per month, more than half drive under 50 hours. Interestingly, men are more likely to drive over 100 hours per month than women (34% vs. 27%), suggesting it is often their primary income source.
INSHUR’s data also highlights the critical role of drivers from underrepresented ethnic groups in meeting rising on-demand service demands. These drivers are more likely to have doubled their hours in the past year compared to their White counterparts (49% vs. 39%).
Job satisfaction remains high, with flexible working hours and better pay being primary motivators. While challenges such as rude customers and high vehicle insurance costs persist, the on-demand economy offers significant opportunities for income improvement and entrepreneurial growth.
Commenting on the findings, Dan Bratshpis, CEO and co-founder of INSHUR, said: “Rideshare and Delivery drivers are the backbone of this burgeoning economy – what we call the On-Demand Economy – and they are transforming the world of commerce in the US, creating the most profound economic shift in four decades. In order for the on-demand economy to survive and thrive, insurers and on-demand platforms should consider drivers’ feedback carefully and continue to work together to build better commercial auto insurance products for drivers.
Bratshpis, continued: “Insurance models need to become more flexible and use data more effectively to enable drivers to access the exact level of coverage they need to match their work and lifestyles. Platforms’ data (such as delivery or trip data), claims and other proprietary datasets such as speed, incidents, driving ability and safety, can help insurers to make sure that coverage is comprehensive and adaptable to the type of work the on-demand driver chooses to do.”
He added: “This helps to mitigate any risk of alienating drivers who have chosen flexibility and financial control over traditional working patterns, as well as delivering insurance products where drivers can easily access them – keeping them on the road and earning.”
Source: INSHUR
