Utilization rates (UR), or how busy a NYC Uber/Lyft driver is kept, declined in November. As UR goes lower, perhaps NYC Uber/Lyft "dispatch rights" are worth more than TLC Plates?
Utilization Rates (UR) are interesting but all it is is an AVERAGE for the entire City at all hours. This average UR does not account for time of day/night nor particular geographical areas. For example, notwithstanding holidays, most URs are high during the weekday morning hours between 5 am to, say, 10 am and then you begin to have a drop off from 10 am to 4 pm. URs can also plummet between the hours of 1 am to 5 am on weekdays.
Geography is also a factor. Many FHV drivers like to drive in the CBD of Manhattan and that causes an oversupply to given demand, thereby causing a fall in UR. A drive to Uptown Manhattan or many parts of Brooklyn will give a driver more opportunities and increased UR. Poorer and “unsafe” neighborhoods will generally give high UR merely because many drivers don’t want to do business there.
I spoke to a driver yesterday and he complained that it’s slow now for January. This has historically been true in general. I asked him if he would consider going into Far Rockaway. He came back and said that area was too dangerous. I didn’t argue with him but I find this nook of NYC in the southern eastern most part of NYC to always have high UR.
Lastly, UR also differs between apps. Uber, by nature of their dominance in the rideshare space, will have a higher UR than Lyft. This difference is taken into consideration by TLC.
A savvy driver will know how to increase their personal UR so as to make the most of their time and earn relatively more money per hour than their peers. Average Citywide URs are a good measure for policymakers and the app companies themselves but they should mean very little to drivers in terms of doing actual business and making money.
Great detailed comment! Yes, in the context of this article UR is really showing people how close Uber/Lyft are to lockouts/“planner”. Note, as you alluded to, everything is measured on the blended App UR, and Uber refers to the Lyft’s lower UR as a “free rider” problem Uber has to solve for.
One could now say these UR stats could be a good indicator re. how long someone might expect to be on the NYC App company waitlists. Really think, 6 months from now, having access to Uber/Lyft NYC TLC could be seen as a sort of “golden ticket”, if you will.
Utilization Rates (UR) are interesting but all it is is an AVERAGE for the entire City at all hours. This average UR does not account for time of day/night nor particular geographical areas. For example, notwithstanding holidays, most URs are high during the weekday morning hours between 5 am to, say, 10 am and then you begin to have a drop off from 10 am to 4 pm. URs can also plummet between the hours of 1 am to 5 am on weekdays.
Geography is also a factor. Many FHV drivers like to drive in the CBD of Manhattan and that causes an oversupply to given demand, thereby causing a fall in UR. A drive to Uptown Manhattan or many parts of Brooklyn will give a driver more opportunities and increased UR. Poorer and “unsafe” neighborhoods will generally give high UR merely because many drivers don’t want to do business there.
I spoke to a driver yesterday and he complained that it’s slow now for January. This has historically been true in general. I asked him if he would consider going into Far Rockaway. He came back and said that area was too dangerous. I didn’t argue with him but I find this nook of NYC in the southern eastern most part of NYC to always have high UR.
Lastly, UR also differs between apps. Uber, by nature of their dominance in the rideshare space, will have a higher UR than Lyft. This difference is taken into consideration by TLC.
A savvy driver will know how to increase their personal UR so as to make the most of their time and earn relatively more money per hour than their peers. Average Citywide URs are a good measure for policymakers and the app companies themselves but they should mean very little to drivers in terms of doing actual business and making money.
Great detailed comment! Yes, in the context of this article UR is really showing people how close Uber/Lyft are to lockouts/“planner”. Note, as you alluded to, everything is measured on the blended App UR, and Uber refers to the Lyft’s lower UR as a “free rider” problem Uber has to solve for.
One could now say these UR stats could be a good indicator re. how long someone might expect to be on the NYC App company waitlists. Really think, 6 months from now, having access to Uber/Lyft NYC TLC could be seen as a sort of “golden ticket”, if you will.