Brandon Donnelly — Daily insights for city builders. Published since 2013 by Toronto-based real estate developer Brandon Donnelly. — Page 267

It has become fairly common to blame Uber (and ridesharing in general) for increased traffic congestion. I hear it all the time: "If only there weren't so many Ubers on the road, traffic would flow more freely." While there are studies suggesting that "deadheading" miles do have a negative impact and that Uber can draw people away from public transit (that's bad), I think it's important to consider the bigger picture here. So let's try and do that today.

Firstly, let's think about who traffic congestion directly impacts (indirectly it's everyone). If you're a pedestrian, you don't care about traffic congestion. In fact, maybe you gain satisfaction from seeing other people stuck in it. (There's even a German word for this feeling .) Similarly, if you're riding the subway, taking any form of transit on its own right-of-way, or riding a bike, you likely also don't care about traffic congestion. It doesn't directly impact you.

Where you do care about congestion is if you're in something like a bus that is stuck in traffic or if you're driving. In the former case, you're probably thinking, "hey why can't these people take the bus like me. Then we'd have less traffic!" And in the latter case you're probably thinking, "if only there weren't so many Ubers and bike lanes, then I wouldn't be stuck in traffic!" Ironically, this is arguably the biggest segment of people who feel they are being impacted by Ubers.

Secondly, let's think about how Uber vs. driving might impact traffic congestion differently. In both cases, I would think that the majority of use cases involve one person (excluding drivers in the case of Uber) going to their desired destination. So from a raw space per person perspective, they both take up a similar amount of urban space.

The differences are that the Uber likely had some amount of deadhead miles. In other words, it spent time driving around looking for its next passenger. And it likely targeted already busy areas because that's where it was more likely to find someone. Individual drivers don't do this. They go from point A to point B.

However -- and this is a big however -- drivers do require parking once they get to where they're going. Ubers don't. This both takes up more space and oftentimes requires some amount of circling around. This is a significant difference and it begs the question: which is worse? Deadhead miles or all of the parking that cars generally require? I would argue the latter.

Where I'm going with all of this is that I think the criticism of Uber is misdirected. It doesn't get at the real underlying problem. If traffic congestion exists, it is because they are too many cars for a finite amount of road space. This includes the people who choose to drive themselves around. In fact, you could argue that they're the most impactful to cities. The way you solve this is simple: you price congestion and you encourage alternative forms of mobility.

Everything else is just a distraction.

Grocery shopping is one of those things that -- despite a lot of people really trying -- has remained a stubbornly in-person activity. However, the pandemic did give online grocery shopping a significant boost, and lot of that has stuck, even if it has been trending slightly downward from its peak. Here are a few slides from Dan Frommer's Consumer Trends: 2024 Food & Wellness Special report:

Part of the challenge may be that the majority of people say they actually like grocery shopping, and doing so in a physical store:

So it is very possible that, for the foreseeable future, there will always be a large segment of buyers who prefer to shop in-store. But then again, if you asked me these same questions, I would also tell you that I like grocery shopping and that I prefer buying in-store. However, that doesn't mean I wouldn't be open to alternatives. I just haven't explored and found a suitable online option.

At the same time, and according to the same Consumer Trends Survey, about 10% of Americans say they currently dislike grocery shopping. Maybe this is the same 10% who are right now shopping online. Either way, this is already a large segment of people who would rather not go into a grocery store.

Intuitively, as the online offerings get better, one would expect this number to grow. Here , for example, is an interesting overview of the service Hungryroot . One part "meal kit" delivery and one part online grocery shopping, the company uses machine learning and algorithms to determine what its customers might want to buy. Already, about 70% of what it sells is picked automatically.

On the back end, McKean explains, among other actions, Hungryroot is “clustering” its new customer with other users who have answered its onboarding survey similarly and have already been with the service for multiple years. “And so we can say, ‘okay, people who filled out that signup flow like you… they loved these top recipes with high probability, so we think you’re going to love these recipes with high probability’.”

What I like about this is that it requires fewer decisions; it has the potential to feel like you have a private chef (one that learns what you like and adjusts accordingly); and it promotes dietary variety. For the typical American, 75% of what they buy in a grocery store is the exact same as what they bought the last time. There's very little variety, because it's always easier not to have to think.

Given this stat, it is maybe surprising that this 75% hasn't become more automated for more people. Perhaps it's the 25% that keeps most of us going into stores. I'm not sure, but I think I'm ready to try a service like Hungryroot.

This morning, I went cycling with my good friend Austin Kjorven up in Milton. And it was a stark reminder that he is an athlete and holds a Guinness World Record, and that I spend the vast majority of my days sitting at a desk.

I'm excited for more riding this summer. Happy May long weekend, everyone.