According to the International Finance Corporation (IFC), the ride-hailing industry is “an ideal industry in which to examine the opportunities and barriers that women face in the sharing economy.” Using data from Uber and consultations with global experts on gender, transportation and the future of work, IFC and Accenture decided to research the impact of gender parity on the global ride-hailing economy. Their final report analyzes data from Egypt, India, Indonesia, Mexico, South Africa and the United Kingdom to bring forth recommendations for ride-hailing stakeholders and companies across the sharing economy.
Women and the Ride-Hailing Industry
Among other findings, the IFC discovered that it is relatively easy for women to enter the ride-hailing industry compared to other sectors, and that working in the ride-hailing industry allows women to start new businesses and maintain those they currently have. Additionally, women who use ride-hailing services say that services like Uber help them accomplish household tasks such as grocery shopping, visiting relatives and dealing with healthcare needs. Women surveyed felt that using ride-share services increased their sense of independence and mobility.
Women in the Workforce
However positive these indications may seem, ride-share services must overcome certain barriers if they are to fully incorporate women into their workforce. For instance, to attract more women to both drive and use their services, ride-hailing providers must work to increase personal security. Women often cite security threats as one of their main concerns regarding the ride-hailing industry.
Additionally, gaps in digital and financial inclusion disproportionately affect women globally. This means it is more difficult for women to acquire resources needed to access the industry. These could include a smartphone or a car. Nonetheless, it was found that 40% of women would prefer a women driver when traveling alone or at night. The IFC reports that recruiting more women to become drivers in the ride-hailing industry could create a cycle that attracts more women riders. Thus, it would be in the interest of the ride-hailing industry to work to attract more women drivers. This is true not only to promote gender parity in the economy, but also to boost their own sales.
The Gender Pay Gap
A Washington Post article on Uber’s gender pay gap outlines similar barriers to women joining the ride-hailing industry. The article finds that Uber’s lopsided pay results from men’s more aggressive driving and greater experience in the industry. In addition, they also have a higher willingness to drive in unsafe, more lucrative locations. Uber drivers are paid based on time and distance. Therefore, they earn more making frequent, shorter trips, rather than fewer, longer ones. Assuming that aggressive and speedy drivers tend to be men, male drivers are positioned earn more than women. Changing payment structures in the ride-hailing industry might be necessary to reduce the discrepancy in gender pay for drivers.
Reducing the gender gap leads to national economic growth. That means it is in the interest of both private sectors and entire countries to incorporate women into their workforce. The World Bank promotes economic empowerment through the elimination of gender gaps in paid employment. Through diverse initiatives, they help ensure that economic growth is shared among men and women. The ride-hailing industry is just one example of how women’s employment benefits the entire economic circuit — from buyers and sellers to a country’s overall GDP.
– Giulia Silver