MOBILITY ON DEMAND (MoD): THE FUTURE OF WORKFORCE COMMUTING
Workforce transportation demands are evolving.
Is your company keeping pace?
It's common knowledge that the COVID era brought about a permanent and drastic change within the American workforce. After the height of COVID and public restrictions were being eased, a large number of Americans re-thought and resisted going back to a traditional workplace, giving rise to the gig economy and the demand for remote work options. Now, five years later, these COVID aftershocks are still being felt in the labor force making it a challenge just to get a qualified applicant to your door.
To compound this challenge, another COVID related change in American life was car ownership and commuting. During COVID, there was a huge demand placed on the used car market resulting in shortages and record high car prices. While prices have cooled over the last few years, high demands and prices remain in the used car market.
Combined with persistent high housing costs and inflation, car ownership and mobility continues to be a challenge for many Americans, a trend that continues today.
A recent 2024 CDC study cited that almost 6% of Americans, roughly 14 million people, "lack reliable transportation for daily living, potentially impacting their ability to work due to the lack of access to a vehicle to get to their job".
According to another study by the University of Texas at Austin, approximately 11% of the population, or 24.6 million people, live in transit deserts. This means that about one in ten Americans reside in areas with limited or no access to public transportation. Additionally, studies have shown that a significant portion of those living in transit deserts experience poverty and social insecurity.
Transit deserts and transportation affordability are not the only reasons behind this shift in mobility. In recent decades there has also been a major shift surrounding societal opinions on car ownership and driving.
According to recent national data posted by the Federal Highway Administration, only 60% of American 18-year-olds currently have a driver's license. That is a significant drop from the 80% that held a drivers license in 1983. Eight states experienced a decrease of 20% or more over the same time period.
More to the point, Pennsylvanians are following this national trend with less people driving or purchasing cars these days. According to the most recent available data:
- In 2020, there were 9.9 million licensed drivers in Pennsylvania. In 2023, that number dropped to 9.1 million, down around 8%.
- In 2020, there were 8.1 million registered passenger vehicles in Pennsylvania. In 2023, that number dropped to 7.9 million, down almost 4%.
Participants in these studies cited various reasons for not wanting or needing, to drive, or to own a vehicle. They pointed to such things as:
- The gig economy.
- Increased technology access.
- Working remotely.
- The number of stores now offering delivery services.
- The rising costs of car ownership.
- Concerns about sustainability and carbon foot print.
- Changing societal views on the importance of driving, including general anxiety about driving.
- Access to rideshare and mobility-on-demand (MoD) services such as Uber and DoorDash.
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