CA Rideshare Electrification Report - powered by EVNoire

CALIFORNIA RIDESHARE ELECTRIFICAT RESEARCH

Report Objectives

To increase the electric vehicle (EV) market share, EVNoire composed a comprehensive study of California rideshare driver needs, challenges and insights, on EV adoption.

The Project Team identified the barriers and facilitating factors to electric vehicle adoption for California rideshare drivers.

Based on these findings, the team created recommendations to assist our industry partners in bolstering EV adoption amongst rideshare drivers.

Gig-Economy Labor Force

California’s gig-economy labor force consists of roughly 1.3 million part-time and full-time workers*.

Working drivers use their vehicles to generate an income, making them acutely attuned to the vehicle market.

2: Rideshare

Behavior

Rideshare Experience

Seasonal Work Patterns

Highest propensity for seasonal driving Nonwhite participants 40 and under who drove seasonally, were 3x higher than white participants

“I decided to work here seasonally so I don't have to leave my car sitting for a long time. I just sold my car. It was just pretty convenient that I just come back and just go rent a car and then give it back, and then I have to worry about it, for till I come back inside the country, you know. I have a dual citizenship. SoI decided after the pandemic, like I can work somewhere a little cheaper and just come back here. Work seasonal. That's what I do. So very attractive because of that.”

Rideshare Experience

Employment status

2 in 3 rideshare drivers are part-time.

Central Valley had 17% more part-time drivers than average

Rideshare Experience:

Employment History

Rideshare drivers in the survey were seasoned drivers:

Two-thirds of drivers worked 3 years or more

Most common employment timeframe was 6 years or more

37% of the average population

40% in regions such as Northern California.

This region should be the focus of recruitment and retention efforts.

Rideshare Experience

Gig Economy

Difference in transportation as a service (TaaS) platforms among drivers of different demographics, indicating different use cases for drivers on these platforms

Vehicle Type

Overview

Among the sample population, over half of drivers were ICE vehicle drivers, a share that was larger in Central Valley (69%) and lower in Northern California (46%).

Rideshare Trip Preferences

380 participants sampled

78% listed frequenting residential areas

Options were chosen at a consistent rate

Recreational activities were lowest with 42%

Drivers are more likely to have a diverse mix

To generate the highest income

Average selection choice for the question

7 out of 13 possible selections

Rideshare Trip Hesitations

380 participants sampled

24% are hesitant to trips in high-traffic areas

18% are hesitant for long-distance trips

Consistent rates across other options

Need for a balanced approach

Driver preferences impact the availability of rides in specific areas or for particular trip types

Addressing these preferences through...

Incentives

Improved compensation

Features allowing drivers to express preferences

Enhance availability & reduce wait times

Vehicle Rental Program

3: Vehicle Considerations

Motivators for EV Adoption

88 sampled

Respondents prioritize reduced cost of fuel for EVs

Aligns with general perception that EVs have the lowest operating costs.

Annual Vehicle Ownership Cost Breakdown

Barriers to Program Use for EV Purchase

Distribution of Ethnicity Among Program Barriers

Barriers to Driving an EV

4: Charging Capacity

Time Spent at Charging Station

88 sampled

High Income participants charge their EVs at home 50% or more of the time at a higher rate than other income groups

Public Charging Challenges

Public Charging Challenges

5: Information Sources

Information Sources

6: Qualitative Findings

EV Motivators and Concerns

Motivators: Environmental Impact

Reduced vehicle emissions

Lower vehicle maintenance costs

Earn extra income via rideshare App incentives

Cost savings of electricity compared to gasoline

“A mi me gustaria el proximo ano empezar o incluso este ano, si veo que todo mejora y lo hago luego porque la verdad debemos pensar mucho también en la mañana. Es un poquito corny, pero también en el planeta hay mucha destrucción ahorita del planeta. Y eso es algo que podemos empezar uno por uno, empezar a mejorar, nuestro futuro o el futuro de los niños”

I would like to start next year, even this year, if everything would to improve I would do it. Because the truth is we need to think in the tomorrow. It’s a little corny, but there's a lot of destruction of the planet right now. And it’s something we could start, to begin improving our future and the future of our kids.“

Motivators: Fuel Cost

71% of ICE drivers prioritized the reduced cost of fuel

Economic considerations help with decisions

EVs have lower operating costs

“I spend about $800 a month on gas, about $200 a week. So I got solar panels installed on my house last year. Mmhmm. <affirmative>, and that's free fuel for me. You know, I don't pay anything. I get a credit back every month, so that's more money in my pocket. So my next vehicle will definitely be an EV. Okay. Even though I get really good gas mileage on that Kia mm-hmm. <affirmative>. why pay for gas if you don't have to?”

Motivators - Rider Reactions

Positive Rider Reactions

Lack of engine noise

In-vehicle technology

“I found like since I've been driving, I also have a Tesla model 3, and like it's a conversation piece with my passengers, you know, people get in and like a lot of people have never been in a Tesla. And so. you know, if we're on a 20 min drive or something, I can spend almost the entire time in the car sort of showing off the features and stuff you know …I put it in full self driving, or I show them the the different things on the screen.”

Instant acceleration

Futuristic aesthetics

Concerns: All Drivers Charging Stations

Drivers look for charging stations that are:

Abundant

Safe Functioning

Waiting on charging stations presents two challenges

Time commitment Safety concerns.

And what I don't want to do is make it where it, it increases my day or my time or my, now I gotta sit and wait for something to charge. That's the point why I like driving or one of the reasons is because I turn the app on and I could go from wherever I am. I don't want to have to add time now I gotta look for a chart. Now I don't feel like all of that.

C a g g es a ge o 30 u es o a coup e o ou s depe d g o

An admittedly fragmented charging ecosystems Type of EV a rideshare driver has

Charging is perceived as a significant hindrance to productivity and generating income

Concerns: Safety

Drivers expressed concern about the safety of charging stations.

Especially at night rideshare drivers encounter dimly lit or seemingly unsafe charging locations.

“...and how inconvenient it would be to either have to find a spot to charge and wait for the charger. And then also there are just places in LA I don't want to sit for 30 minutes in my car. Especially late at night … or even during the day. Yeah you know, just like there are places in the LA I don't even drive to or take trips to, so why would I want to have to maybe get stuck there trying to look for a charger and charge my car”

Concerns - Cost vs. Profit

A worry of drivers is the purchase or rental cost of EVs compared to the profit for ridesharing EVs tend to be more costly

Price parity is expected to occur ~2027

“The other thing that's always been for me is the range of it. Cuz some days I can drive hundreds of miles. Like I like to go down to Orange County when they're busy down there Cause it's easier to get around like July 4th, there's gangbusters down there for earning and I can't think about having to stop for a hal hour or an hour to try and charge. So I like the reliability of gas”

Concerns Additional Trip Strategy

EV Owners and Renters expressed that additional time and effort to plan out efficient charging logistics for rideshare driving is a challenge. Some participants embraced the challenge, some were a bit less enthused about the extra planning and strategizing needed.

“If my charge is low…depending on how low it is. 30 minutes to 40 minutes that's adding to my day of me being gone from my family as opposed to when I had my gas car. I can, even if I took a ride and I'm like, oh, I'm low… I can stop real quick, and it's a 5 minute fill up”

Additional Findings

Connectivity

“I think this would be just an awesome feature in both apps, if like, they could show where charging stations were within the app like map, like a lot of times if I'm getting low…like really low or like whatever like 50 miles range left on my Tesla, and I get a ride I start trying to like look at the map when the request comes in and see. Oh, is that taking me close to one of the charging stations. But I have to kind of like mentally remember where the charging stations are, or sometimes, you know, I do look at like the GPS on my car and like map out in the Tesla where the charging stations (are) and kind of try to just do the math and the you know the whatever the logistical planning on my own. If it was in the app that would like make life so easier”

Bonuses

“

...if I do 50 rides in my Tesla a week, I get a $150 bonus and that's significant, you know, and you get a dollar extra per ride. So if you the more you know, money talks, and so the more they make it like financially beneficial to drive an EV the more it's going to bring people over, especially rideshare drivers.”

Electric Vehicle Rental Programs

Likes

“So we're with Hertz…in the Fresno area. Hertz, it's been great because you're in and out. If you get a EV rental or whatever it's like 15-20 minutes tops. So you're in and out… they’re on it. I mean, it's really expedient. They do a great job.”

Dislikes

”I mean, I think it's worded and um, it's worded and it's advertised in a way that makes it sound cost effective. Okay. But you're actually much better off just going out and buying the car yourself.”

7: Recommendation

Rider Engagement Policy Programming Research

Rider Engagement & Outreach

Marketing Messaging - Actively motivators and concerns in mes

Motivators

Reduced vehicle emissions & envir

Gas price vs electricity

Lower vehicle maintenance cost

Earning extra income per trip and v

Positive passenger interaction and Concerns

Range limitations

EV profit margins

Additional time and effort to plan c

Policy

California Electric Vehicle Incentive Programs - Prioritize targeted awareness campaigns, advertising on rideshare apps, community organizations, and social media, ensuring equitable access to application processes for improved efficacy.

California offers many incentives, rebates, and programs to make purchasing EVs easier.

77% of participants did not use any of the provided programs

47% did not know about the programs or incentives

There is an opportunity to stack rebates and incentives

Increased awareness campaigns focused on

Simple, straightforward communication and direct calls to action

Easy access to starting the application processes for benefits

Provide in-person opportunities for education

Programming

Trip Preferences

-

Encourage comprehensive trip selection and enhanced compensation structures aimed to enhance service availability and reduce passenger wait times in areas drivers frequent less.

During analysis, participants were asked

“What type of locations do you make trips in/to frequently?”

“What types of trips are you most hesitant to accept as a rideshare driver?”

Areas frequented - Airports, hotels, and tourist attractions

Areas avoided - Long distance trips, bumpy/bad roads, areas without price surging

Address these preferences through:

Incentives

Improved compensation

Features allowing drivers to express preferences

Programming

Enhanced Offerings - Present enticing offerings and opportunities that cater to the needs of rideshare drivers.

Research participants expressed desire for rideshare platforms to increase or enhance their service offerings in the following ways: Seasonality Connectivity Bonuses Exclusive Charging Stations

Programming

Electric Vehicle Rental Programs -

Expand accessibility of EV rental programs through innovative and comprehensive cost structures and programs.

Research found most participants appreciated the concept of EV rentals

Rideshare drivers were hesitant to participate due to rental cost

Additional Areas for Improvement

Short Term/Temporary friendly rideshare rentals

Rideshare apps renting vehicles to drivers directly

An electric vehicle rental program helps drivers to purchase the vehicle later

Increased incentives from rideshare platforms to help drivers buy a vehicle

Research

Studies and Engagement - Continuously engage with rideshare drivers and assess the rideshare driver ecosystem.

The study allowed for key insights and understandings about the rideshare driver ecosystem

Our initial Focus Group survey had a response rate of 10%, more than 3x the industry avg. of 3%

Only 1% of drivers interested in the Focus Groups were able to participate

Consistent engagement and analysis of the changing needs and challenges are needed.

The industry can efficiently adapt to these developments and better facilitate EV growth

Some methods to achieve this goal include:

Surveys to further assess regional and city-specific trends

Focus groups to analyze the sentiments of drivers

In-person engagements to educate and connect with rideshare drivers

Conclusion

California is setting a great example for other states in the transition to elecric vehicles.

Although, achieving their 2035 goal of Zero Emission Vehicle (ZEV) will not be without its challenges.

Barriers to increased EV adoption include:

Vehicle cost

Range anxiety

Fragmented EV charging infrastructure

Additional strategizing and planning for fueling for fueling

Concerns about battery degradation

General lack of EV education

Excitement Around EVs is Surging

The study explored CA rideshare drivers... In-depth motivators

Preferences

Misconceptions

Apprehensions

What the electric vehicle industry needs to do, to achieve an even greater EV market share in the near future has been described.