Uber, Rideshares Creating a Decline in Gen Z Drivers

In 2003, statistics from the U.S. Department of Transportation showed that 45% of eligible people age 19 or under had a driver’s license. In 2023, that number has declined to about 33%.

Are Gen Zers failing the parallel parking portion of their tests in record numbers? No, the decline in licensed drivers has nothing to do with skill and everything to do with tech, reports Business Insider.

Related: ‘It Is What It Is’: Uber CEO Defends New Return-to-Office Policies at ‘Heated’ All-Hands Meeting

More and more young folks are getting around in Ubers, and see no real reason to get behind the wheel themselves. On a recent conversation on the Decoder podcast, Uber CEO Dara Khosrowshahi revealed that his 18-year-old son is part of the trend.

“I’m still trying to get my son to get his driver’s license, but Uber’s freed him up,” Khosrowshahi said.

Khosrowshahi explained that for older generations, getting a driver’s license meant freedom — you could finally go where you wanted to go without needing a lift from your parents. These days, Uber delivers that same freedom, he said, without the cost of buying a car, insuring it, and keeping it fueled up.

Related: Uber’s CEO Says Drivers Have About 10 Years Left Before They Will Be Replaced

Uber has long billed itself as an alternative to car ownership, and has not been quiet about its efforts to capture the teen demographic. They’ve offered a version of the app geared at teens since 2023, and their subscription program, Uber One, allows parents to get rides for their kids.

Uber’s efforts with this demographic and others seem to be paying off. In its 2025 first-quarter investor report, Uber’s gross bookings grew 14% year-over-year to $42.8 billion. The company estimates second-quarter gross bookings will reach $45.75 to $47.25 billion.