Uber CEO Says Gen Z Skipping Driving Licenses Is Real—And Personal. His Own Son Won't Get One, And It's Driving Him 'Crazy'

Uber (NYSE:UBER) CEO Dara Khosrowshahi says the trend of Gen Z delaying or ditching driver's licenses isn't just something he sees in the data; it's happening in his own household.

More Teens Are Ditching the Wheel

"I'm still trying to get my son to get his driver's license," Khosrowshahi said on a recent episode of The Verge's “Decoder” podcast. "It drives me crazy. I don't know about you, but did you get a license the minute you could drive? It was just such a thing. It was a goal in life. It represented freedom."

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Khosrowshahi pointed out that the percentage of 16- and 18-year-olds getting licenses has dropped significantly. He called it a clear sign that personal car ownership no longer holds the same value it once did. “If you look at the percentage of 16- or 18-year-olds who are getting their license, that percentage is coming down significantly,” he said. “I think it used to be two-thirds, but now it's probably in the 50 percent range.”

Asked if his son's reluctance to drive was a sign of Uber's success or that of a popular video game Fortnite, Khosrowshahi quipped, "Probably the two are mixed. I also think it's an indication of the urbanization of our populations, but I haven't actually looked into whether heavy Fortnite players are Uber users as well. I suspect they may be. Certainly Uber Eats users."

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According to the latest data from the U.S. Department of Transportation, just under 4% of licensed drivers in the country are 19 or younger. That's a big drop from decades past. In 1983, 46% of all 16-year-olds had a license. By 2019, that number was 25%.

For 18-year-olds, the decline is similar: from 80% with a license in 1983 down to 58% in 2022.

Why Gen Z Isn't Driving

Young people are skipping licenses for a bunch of reasons. Many don't need a car to connect with friends anymore—they're online all the time. Others use ride-hailing apps like Uber and Lyft (NASDAQ:LYFT), or stick to public transit and biking. Driving anxiety is also playing a role.

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According to a 2023 Washington Post report, aggressive driving and road rage were on the rise. Combined with mental health challenges, some teens now see driving as stressful, not exciting.

Gen Z's hesitance has big implications for the future of transportation, especially for a company like Uber. But Khosrowshahi sees it as a sign of change, not disaster. "Uber's freed him up," he said about his son. That flexibility is part of what Uber wants to offer more broadly.

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