According to eMarketer, 15 million people in the U.S. relied on ride shares in 2016—a number projected to grow 36% by 2020. What’s more, research shows that ride-share services are not deterring consumers from buying new vehicles. In fact, this phenomenon creates opportunities for auto manufacturers and insurance advertisers.
Opportunities for autos advertisers
As the demand for ride-sharing increases, so does the demand for drivers. In a study conducted by Kelley Blue Book, 18% of potential and current drivers said they were interested in driving for a ride-sharing service to help offset the cost of buying or leasing a new car, and 12% said they were interested in driving to offset the cost of buying or leasing a more expensive vehicle.
Additionally, ride-share services require cars to be manufactured after a particular year, helping ensure that drivers own newer models. Because ride-share companies also have different levels of service, drivers are able to charge more per ride wiith a premium vehicle, creating an incentive to upgrade. Finally, vehicles reflect drivers’ personalities and tastes.
These trends create an opportunity for auto manufacturers to target ride-share drivers and deliver specific messages on the benefits of buying a new vehicle. Whether encouraging a vehicle upgrade, promoting fuel efficiencies, or specifying the values of a new brand, auto manufacturers can identify a new group of in-market consumers and address what’s most important to them.
Opportunities for auto-insurance companies
According to a poll conducted by The Rideshare Guy, 89% of ride-share drivers said they didn’t have a ride-share specific auto insurance policy. Drivers are confused about what they need and what it covers, plus coverage differs by state and new options are added frequently. As a result, there is an opportunity for auto insurance brands to demystify their policies. Using geo-targeted messaging and custom content, insurance brands can communicate policy information to ride-share drivers to ensure they are securing the coverage they need.
So, who are these drivers?
Yahoo reaches over 10 million ride-share drivers monthly, and here are a few insights on this unique audience:
- They tend to be millennials (ages 18-34)
- They are reaching important life events, with a higher likelihood to be applying to college (+58%), getting married (+30%), and becoming parents (+15%)
- They are more likely to consume content on mobile apps versus mobile and desktop web (+25%)
- They are 48% more likely to be in-market for luxury vehicles
- Most drivers live in rental properties, but 73% are shopping for a new home
- They want insurance coverage across their lives, which opens a door for new policies and extended coverage across renters, home and life insurance policies
Our Sales team provides auto manufacturers and insurance companies the targeting they need to reach ride-share drivers, an audience that’s growing in importance as the demand for these services increases. Contact us to find out how Yahoo can help you engage ride-share drivers.