How Uber steers its drivers toward better performance

Core Insights - New research indicates that Uber's quality control mechanisms have made drivers in Chicago as safe and reliable as traditional taxi drivers, suggesting a need for regulators to consider new quality-control measures [1][3][16] Company Practices - Uber employs a system of ratings and notifications to hold drivers accountable, which includes sending alerts for low ratings and providing resources for improvement [2][5] - The company conducts basic checks on criminal history and driving records for new drivers, but does not require extensive training like traditional taxi drivers [4][14] Research Findings - A study analyzed approximately 6.9 million UberX rides in Chicago, revealing that drivers improved their performance significantly after receiving notifications about low ratings [7][10] - The research found that drivers who received detailed feedback on their driving behavior showed greater improvement compared to those who did not [12][11] - UberX drivers outperformed traditional taxi drivers in metrics such as speeding and sudden braking, while taxi drivers were better at minimizing phone usage and taking quicker routes [15][16] Implications for the Industry - The findings challenge the conventional wisdom that experience and training lead to better service quality, suggesting that after-the-fact quality controls could replace burdensome screening processes in some industries [16][17] - The research indicates a potential shift towards removing barriers to entry in professions while maintaining service quality, which could lead to lower prices and fewer safety downsides [17]