Poll: Pandemic shifts how consumers use gig companies

When ride-hailing heavyweights Uber and Lyft and delivery giants Grubhub and Instacart began making shared rides and meals available with a few taps on a smartphone, they transformed the way people work, travel and get food delivered to their homes.

But the pandemic shuffled the deck for the so-called gig economy as fear of contracting the coronavirus led many who once traveled in shared vehicles to stay home, and grocery delivery services struggled to keep up with demand from people who didn’t want to risk stepping into a store.

A new survey from the University of Chicago Harris School of Public Policy and The Associated Press-NORC Center for Public Affairs Research shows how consumer attitudes about using ride-hailing and delivery services have changed. It also highlights a wealth divide, where Americans with higher incomes are able to utilize the services to help reduce their risk of infection.

“People are worried. We know that,” said Dmitri Koustas, an assistant professor at the University of Chicago Harris School. “They’re worried about themselves and their families, and they’re concerned about the virus, and they’re also worried about workers.”

Among the people who used ridehailing before the crisis, 63 percent said they have not taken a ride since March. At the same time, people with higher household incomes had more groceries delivered to their homes.

Those with household incomes about $100,00 a year were roughly twice as likely to have increased their use of grocery delivery services than those in households earning less, the survey found. Overall, the percentage of people using delivery services remained about the same since the pandemic began, with those increasing their use balanced out by those cutting back, in some cases because of cost.

In Auburn, New York, few grocery stores offer delivery, and those that do are more expensive, said Patricia McAvaney, 49, who is disabled and living on a fixed income of $920 a month. She’s not comfortable going to the grocery store, but feels she has no choice.

“I’m on a budget, so it’s really not feasible to get everything delivered from that store,” McAvaney said.

Many Americans have been uncomfortable with delivery services during the pandemic. About 6 in 10 say they are very comfortable picking up food from a restaurant, compared with about 3 in 10 using delivery. Roughly another 3 in 10 said they are uncomfortable getting food delivered.

George Hunter, a 60-year-old antique dealer in Kent, Washington, said he went out to restaurants three or four times per week before the pandemic. But he’d rather cook his own food than order in, and he prefers to pick his own produce at the store.

“I did a lot of my appointments in restaurants, and it was a treat, to go out and have somebody bring me coffee and do the dishes,” Hunter said. “It’s no longer a treat. I’m in the house. It doesn’t make sense to me.”

A majority — 54 percent — said they feel uncomfortable using a ride-hailing service during the coronavirus outbreak, preferring their own cars for travel. A similar percentage were uncomfortable with taxis, public transportation and air travel, suggesting people are shying away from all forms of transportation where they share space with others.

Thomas Sorenson, a 63-year-old handyman, used ride-hailing when he went out with friends before the pandemic. But they no longer get together, and he takes care of his elderly mother, so wouldn’t risk infection by using ride-hailing services.

Karena Mazur Israel, 52, said she would be more comfortable riding in long vehicles such as buses, station wagons or limousines.

“On the bus, if you’re feeling like you can’t socially distance, you can get off of the bus and transfer, and wait until the next bus to come around,” she said.

The changing sentiments on ridehailing and delivery are reflected in recent earnings for companies in those spaces.

Uber and Lyft lost a combined $2.2 billion in the second quarter as people shied away from their services. Bookings in Uber’s mobility business declined 73 percent and the company laid off a quarter of its workforce. Uber’s food delivery business more than doubled its revenue compared to last year, but it didn’t turn a profit. In April, Lyft’s rides were down 75 percent compared to the same time last year, and the company said it was laying off 17 percent of its workforce.