Technological advancements over the past decade have resulted in a shift in the way that people travel and the way they access the ability to travel. The growth in use of smartphones and apps are examples of market-driven developments which have transformed the possibilities for transport and have led to the emergence of new transport services. With the advent of technological change in the transport sector (e.g. journey planning apps, contactless payments and the provision of real time information), consumers have embraced new service delivery models in the changing transport landscape.
One of the most significant developments in the transport sector which has been supported by technology innovation and the growth of the sharing economy has been the emergence of ride sourcing – a form of convenient, flexible on-demand transport booked through smartphone apps that enable customers to tailor their journeys to fit individual needs.
The growth in the ride sourcing market emphasises the need for governments to have access to vital information about travel patterns and usage in order to be able to effectively plan and deliver services for future transport networks. The inclusion of ride sourcing in the Census will provide an important mechanism for transport authorities to access crucial data on this relatively new and evolving method of travel. While traditionally taxis have been used as the main form of on demand transport, consumers are now using ride sourcing services as well to complement existing services and it is likely that it will also form an important part of the journey to work picture in the coming years which governments will need to have visibility over to better inform policy.
The benefits of ride sourcing for transport authorities include the potential for such services to reduce private vehicle ownership and use, with associated positive impacts on congestion and the environment and improving connectivity by addressing gaps in the transport network (i.e. the provision of ‘first mile-last mile’ connections to public transport hubs). For consumers, the benefits include having more choices on offer, accessibility, flexibility and convenience. There are also risks for government around continuing to ensure consumer protection and safety.
In order for transport authorities to be able to maximise the opportunities associated with ride sourcing and minimise any risks, it is imperative to have an avenue for obtaining such valuable data through the 2021 Census.
Ride sourcing has experienced significant growth in adoption over the past several years throughout Australia and worldwide. The ride sourcing company with the largest market share in Australia – Uber – has grown substantially since its launch in 2014. Research shows that 3.7 million Australians aged 14 years and over (18.4% of the population) travelled by Uber in the three months to December 2017, up from just under 1 million (5.1%) less than 2 years ago. The same research also showed that in the last three months of 2017, approximately 24% of WA residents had used an Uber, followed by 22% in Victoria, and 17% in both NSW and Queensland. Since Uber’s launch in April 2014 to 2016, over 10 million uberX rides have been completed in Australia. Nationally, Uber earned an estimated $260 million in fares in 2016.
Such extensive growth demonstrates how the ride sourcing market has expanded nationally within a short period of time and highlights the ways in which ride sourcing has changed the way Australians travel. Although the available evidence indicates that the majority of ride sourcing trips are currently made for recreational or social purposes and predominantly on weekends, the growing proportion of trips taken with ride sourcing services more broadly indicates that the number of trips taken for the work commute will also increase.
This is particularly the case in the future environment where nationally, trip patterns will continue to vary with the growth of the ‘sharing’ economy (e.g. car sharing and bike sharing), as well as changing work patterns (e.g. flexible hours, telecommuting, etc). There is evidence of corporate accounts being established with ride sourcing companies for work related trips. Ride sourcing is becoming a popular transport mode for businesses as travel can be easily monitored and provides a cost saving. Combined with its flexibility and convenience, ride sourcing will continue to offer an attractive transport option for consumers throughout Australia.
The rapid increase in ride sourcing use on a national scale raises questions around just how ride sourcing has changed travel patterns, including the extent to which users are substituting from public transport or other modes, changes in mode use and its impact on congestion and carbon emissions. These are all important questions for policy makers and will provide highly useful data that can be used for research and policy development purposes. Including ride sourcing in the Method of Travel to Work in the 2021 Census will help to shed further light on answering the questions that its extensive use raises.
Excluding ride sourcing as a method of commuting to work misses a valuable opportunity for government authorities to better understand its impact in a rapidly changing transport landscape and to support transport policy and planning decisions to meet community needs.