Report: Rideshare and delivery platforms generate $8.3 billion in annual economic activity in Massachusetts; $503 million in state and local tax revenue

Analysis of publicly available data show huge economic impact of independent drivers

Contact: Conor Yunits, 857-276-8479 | cyunits@solomonmccown.com

BOSTON, MA – April 20, 2022 – Rideshare and delivery platforms in Massachusetts increase economic activity in the state by $8.3 billion, according to a new independent analysis  conducted using publicly available US Census Bureau economic data and the same tools and methods used by government and organizations to evaluate legislative and business proposals of all kinds.

The study, conducted by Leo Feler, a senior economist at the University of California Los Angeles Anderson School of Management (UCLA Anderson), found that the increased economic activity also “generates over $503 million in state and local tax revenue.” These figures include rideshare and delivery’s direct impacts, plus multiplier effects that occur as earnings and spending cycle through the wider Massachusetts economy.

That economic impact is widespread across the Commonwealth. Middlesex County experiences an increase of about $2 billion in economic activity associated with rideshare and delivery platforms, while Suffolk County ($1.5 billion), Essex County ($1 billion), and Worcester County ($900 million) all also saw increases of around a billion dollars or more.

“Rideshare and delivery platforms provide a service that might otherwise only exist on a much smaller scale,” Feler said in testimony to the Massachusetts Legislature’s Joint Committee on Financial Services. “And by providing opportunities for independent workers to earn additional income, rideshare and delivery platforms boost the overall economy of Massachusetts. They also boost the tax revenue that cities, towns, and the Commonwealth use to fund crucial public services like social services, infrastructure, and education.”  

Additional findings from the study include: 

  • Delivery platforms are also associated with greater demand for restaurant services, generating additional income and spending for restaurant workers, which then also “multiplies” through the economy.
  • Independent workers then spend their additional earnings on general consumption, such as housing, health care, education, and other goods and services, mostly in the communities where they live.
  • The growth in independent delivery worker earnings was also associated with higher earnings in the restaurant services industry in the US.  
  • Platforms that offer opportunities for independent work have helped people smooth income and consumption in response to economic shocks such as unemployment.

Last month, more than 6,400 drivers signed a petition to the Massachusetts legislature asking them to support drivers and pass legislation that would protect their flexibility while giving them access to new benefits.

La Flexibilidad y beneficios para los conductores de Massachusetts committee is committed to securing rideshare and delivery earning opportunities for residents statewide who value the earning potential and the flexibility the work affords them.