Study finds navigation apps help level the playing field for ride-hail drivers

Technology is making the ride-hail industry more accessible than ever, according to new research in Strategic Management Journal, a publication of the Strategic Management Society. The study, conducted by academics at the National University of Singapore (NUS), shows that navigation apps are not just a convenience—they’re a game-changer for many drivers, especially those with less experience behind the wheel.

Researchers Dr. I.P.L. Png, Distinguished Professor at NUS, and Dr. Pinchuan Ong, Assistant Professor at NUS Business School, ran a series of experiments with ride-hail drivers in Singapore between July and August 2024. Their findings highlight that navigation apps, such as those used by ride-hail platforms, significantly reduce barriers to entry for new drivers and help ease the stress of the job.

The study focused on ride-hail drivers in Singapore and involved a series of laboratory and field experiments. Researchers discovered that for many drivers, the ability to use a navigation app was the deciding factor in whether or not they would accept a job. Without the app, some drivers felt unequipped to navigate the city’s roads; with it, they were empowered to take on work they might otherwise have avoided. Importantly, the technology didn’t just help drivers find their way—it also reduced stress, as measured by lower heart rates during their shifts.

For workers with limited skillsets, ‘deskilling’ technology like ride-hail navigation apps can make job opportunities more accessible, said Dr. Png. “The media is awash with warnings that technology will displace humans out of jobs. We balance the debate by providing a contrasting narrative. Technology can deskill jobs, making them accessible to a broader group of people—put simply, create jobs.”

The research included both laboratory and field experiments where drivers were presented with different scenarios—some where they could use a map app, and others where they could not. Drivers were asked how much of their earnings they’d be willing to give up for the benefit of using the technology. Notably, inexperienced drivers were willing to give up more commission to use navigation apps, and they reported significantly reduced stress levels, even showing lower heart rates during rides.

Drivers rated the importance of productivity versus amenity in their choices—for instance, whether earning faster or having a less stressful job mattered more to them.

The experiments varied the availability of navigation apps and adjusted the commission drivers would pay to the platform. Researchers measured how much in gross earnings drivers were willing to sacrifice for access to the technology.

The study also found that drivers who rated themselves as less skilled were less likely to accept jobs if they couldn’t use a navigation app, whereas more experienced drivers were more comfortable working without one. This suggests that navigation apps help bridge the gap for those who might otherwise be excluded from these opportunities. Dr. Png added, “To quote one driver whom we interviewed, ‘Without the map app, I simply could not do the job.’"  

The findings demonstrate that technology can ‘deskill’ certain jobs, making them more approachable and less stressful, which in turn expands the job market for people who may not have extensive experience, the researchers concluded. Meanwhile, from a business perspective, adding deskilling technology can combat labor shortages. According to Dr. Png, “Businesses should think strategically about technology as a way to expand labor supply, not just as a way to replace workers.”

Access the full study in Strategic Management Journal.

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