🔓📉 Uber/Lyft Utilization Rates Decline
Utilization rates (UR), or how busy a NYC Uber/Lyft driver is kept, declined in October. UR is a critical metric that all TLC drivers should track related to lockouts, FHV supply/demand & waitlists
October industrywide UR drops 1.9% to 55.2%
Year-to-date industrywide UR drops 0.1% to 55.2%
Newly applied Uber/Lyft NYC drivers will likely need to wait for longer time periods to get off waitlists, incentivizing them to “game” system by initially signing up for apps with WAV or EV
Unclear if yellow cab industry will benefit from longer Uber/Lyft waiting lists
Probability of “lockouts”, as of now, is low, unless trip demand significantly drops in upcoming months
This is our third update on Uber/Lyft’s monthly NYC utilization rates (UR). UR can simply be described as how busy an Uber/Lyft NYC driver is kept. It is a key metric for TLC-licensed drivers to track because it tells you the probability of “lockouts” returning, the appropriateness of NYC for-hire vehicle (TLC Plates) supply vs. trip demand and how long a prospective app driver might need to wait to get off Uber/Lyft’s NYC waitlist.
The lower UR is, especially anything that risks breaking the 53% driver minimum pay-related UR floor, the higher probability of lockouts and the longer new drivers will have to wait to get off the waitlist(s). Based on our discussions, some new TLC drivers are even trying to game the waitlists by temporarily renting a wheelchair accessible vehicle (WAV) or buying/renting an electric vehicle (EV), as Uber/Lyft need to meet regulatory thresholds (i.e., Green Rides Initiative) related to those vehicle types.
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Currently, year-to-date (YTD) industrywide UR as of October 2023 (latest TLC data), stands at 55.2%, comfortably above 53%. However, this also implies Uber/Lyft NYC don’t really need that many new NYC TLC drivers. When November UR stats are posted, we’ll keep our readers up to date. We will also keep track of whether longer Uber/Lyft waiting lists will drive TLC-licensed drivers to the yellow cab industry. As of now, it’s unclear.
As always, let us know your thoughts in the comments section below or by emailing us at info@automarketplace.com.
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I am a new TLC license holder… but been waitlisted on uber and lyft, how can I speed up the process? As I dont have my own vehicle
Is the UR measured from Jan to Dec?