Sharing Economy

How do you measure driver quality for the sharing economy?

Arity · March 27, 2020 · 3 min read
How do companies in the sharing economy accurately predict whether someone will be a good driver on their platform or not?

Attracting and retaining the highest quality drivers is top of mind for sharing economy companies. Good drivers are not only essential for your business, but they also represent your brand as the front lines of interacting with customers.

But how do you accurately predict whether sharing economy drivers will perform well on your platform?

As we know currently, driver quality is measured by a few key facts about the driver’s background. These facts are important but may not be enough to measure driving quality.

Existing Methods: Reviewing Sharing Economy Drivers

Let’s take two drivers, Elliot and Jordan, as one example.

When we compare these two sharing economy drivers, they look similar on paper. They live 10 miles apart, have been licensed drivers since they were 16, and have good driving records. With this information alone, it appears worth onboarding both of them.

But looking at their driving history doesn’t give a full picture of what kind of driver they will be on your sharing economy platform. From the moment they activate, each driver could take so many different literal and figurative paths. Every choice they make might lead to a happy customer, but sometimes it doesn’t.

When it doesn’t, we need to consider the monetary costs and reputation risks with each incident, such as:

  • All the people involved in the incident and how they are thinking and feeling about your brand
  • How to quickly take care of everyone involved
  • The vehicles to recover, repair, and get back on the road
  • Processes to report claims
  • Properly paying out claims

You’ve also lost the ability to deliver on your service.

Predictive Insights Are Required to Measure Driving Quality

To get ahead of these insurance risks, we need to consider driver quality from the start. By screening sharing economy drivers with predictive insights to determine how safe they will be, we can get a better view of who’s suited to deliver the best experience for your brand.

Looking ahead is only possible with historical loss trends. Historical loss trends help sharing economy companies understand which drivers are more likely to be good drivers and which ones are more likely to lead to claims. In other words, we can more closely predict who will provide the best experience with the least risk.

These insights are a critical jumpstart to make sure your drivers are the best drivers out there.

Now let’s look at Elliot and Jordan. Who do you want driving for your brand?

Gaining the advantage of predictive insights to measure the quality of incoming drivers is simple when you have access to vast amounts of historical loss trends. Learn more at

*Examples are for illustrative purposes only and may not be an exact representation of Arity products.

Explore how to optimize insurance pricing for sharing economy.

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