Local Transport App Use Soars Nearly 30% as Commuters Embrace Connectivity

Consumers are actively engaging in various digital activities, according to the latest edition of the “How The World Does Digital” report by PYMNTS Intelligence, which highlighted a 6.5% increase in daily engagement compared to the previous year, driving growth in the ConnectedEconomy™ Index. 

In particular, consumers have shown significant engagement in digital travel activities. The report found a year-over-year (YoY) increase of almost 10% in consumer engagement in this sector, indicating a notable shift towards using digital platforms and services for planning, booking and managing travel-related tasks.

Among the digital travel activities, the largest increase of 27% was observed in daily engagement with local transport apps, which consumers are increasingly tapping to navigate their daily commute and travel needs. 

Uber’s latest earnings, for example, show that its core UberX business grew 20% year on year, with the introduction of services like Reserve for consumers willing to pay more for higher reliability, and UberX Share for consumers who are willing to share a ride with another passenger for a discount. The digital ride-hailing giant further noted a 21% surge in gross bookings to over $35 billion, with gross bookings for rides gaining 31%.

Commenting on the core mobility business, Uber CEO Dara Khosrowshahi said that “the quarter was strong across the board, in every single geography, pretty much in every single product,” underpinned by strong travel trends during the summer.

The rise in engagement with local transport apps like Uber can be attributed to several factors. Firstly, the increasing availability and accessibility of smartphones and mobile internet have made it easier for consumers to access and use these apps on the go, per the study.

Secondly, the growing urbanization and congestion in many cities have made traditional transportation methods less efficient, leading consumers to seek alternative options. Local transport apps provide real-time information, route planning and payment options, making them an attractive choice for consumers.

The COVID-19 pandemic has also played a role in driving the surge in digital travel activities. With travel restrictions and safety concerns, consumers turned to digital platforms to explore local destinations, plan staycations or find alternative modes of transportation. This shift in consumer behavior has accelerated the adoption of digital travel activities and further fueled their engagement.

The impact of consumers’ increased engagement in digital travel activities extends beyond convenience and efficiency. As more consumers embrace digital travel activities, it creates opportunities for innovation and growth in the travel industry. 

Belgium’s launch of the multimodal app, Floya, exemplifies this trend. Introduced in September by the country’s public transport operator STIB, this digital app consolidates information about all mobility options in Brussels — including buses, metros, e-scooters, and shared cars — on one platform, marking a first in the European country. This innovation showcases how the surge in digital travel engagement is paving the way for significant advancements in the industry.

In conclusion, the PYMNTS Intelligence report highlights the growing engagement of consumers in digital activities across multiple sectors. The increasing reliance on local transport apps, for instance, serves as a compelling signal for businesses and industries to acknowledge the significance of these digital avenues and pivot their strategies to flourish.