Economic and social factors driving engagement with app-based driving platforms as an income source in developing economies

This bachelor’s thesis explores why many people in developing countries use app-based driving to earn a living.

Context and goal of the study

Salvador, Brazil, was the focus of this study, and local drivers were the background to understand what motivates drivers, their day-to-day experiences, and their biggest challenges while working for platforms like Uber, 99, and InDrive.

As formal employment becomes scarcer due to high unemployment and income inequality, more workers start to look for gig work as a source of income.

Methodology

Considering the abovementioned scenario, eight semi-structured interviews were conducted with drivers from diverse backgrounds, including different education levels, job experiences, and personal motivations. The researcher thematically analysed the interviews by using MAXQDA and resulted in eight main categories: Economic Motivation, Flexibility, Personal Factors, Acquired Experience, Safety and Risk, Social Impact, Gender Differences, and Future Perspectives.

Results and Discussion

Most of the drivers interviewed reported that they started driving because of financial needs, and for six out of eight, it is currently their primary source of income. Flexibility and autonomy at work were the most appreciated benefits from the app-based activity. However, they also mentioned significant pain points, such as unpredictable earnings, job insecurity, and a lack of benefits like health insurance or retirement plans previously offered by formal employment.

Interestingly, drivers with more experience developed specific expertise to increase their earnings and act more strategically. A key output from the interviews was how few women are behind the wheel — and the ones who are often face serious safety concerns, social stigma, and limited working hours, which impacts their income. Their stories align with other studies cited throughout this study which observed how platform-based work often spreads gender inequalities.

In summary, app-based platforms seem to provide a short-term solution to the lack of traditional and formal job opportunities in developing economies, but they are not stable or sustainable career paths. The lack of protection and future prospects raises bigger concerns about the future of work in these economies.

Expected outcome

This study aims to foster policymakers, platform companies, and local authorities to cooperate and work for fairer, more inclusive policies to protect these workers’ rights.