'No Licence Even at 18': Why Gen Z Are Ditching Car Ownership for Ride-Hailing Apps like UBER

Despite a surge in domestic car production across the United States, fewer young Americans are interested in buying their own vehicles. Instead, many Gen Zers are opting to carpool or use ride-hailing apps, with Uber emerging as a clear favourite. In a recent interview, Uber CEO Dara Khosrowshahi opened up about the app's growing role in young people's lives—highlighting just how much personal transport habits have shifted.

'No Licence Even at 18': Gen Z's New Norm

In an episode of the Decoder podcast by The Verge, Khosrowshahi revealed that his own teenage son, despite being over 18, still hasn't secured a driver's licence.

'I'm still trying to get my son his driver's licence, but Uber freed him up,' said Khosrowshahi. 'If you look at the percentage of 16 or 18-year-olds getting their licence, that percentage is coming down significantly. It used to be two-thirds, but now it's probably in the 50 per cent range. I could be wrong. So, it is affecting car ownership.'

This anecdote mirrors a national pattern. In 2023, only 33% of Americans aged 19 or younger had a licence—down from 45% in 2003. Khosrowshahi credits Uber's convenience for accelerating the shift away from traditional car culture.

A Steady Five-Year Drop in Car Ownership

From 2019 to 2024, the number of 16- to 24-year-olds with driver's licences dropped sharply. In 2019, around 60% of this group had licences. By 2021, that figure had fallen to just 39.5%.

This shift is driven by several factors: rising car costs, soaring insurance premiums, expensive maintenance, and the sheer convenience of ride-sharing apps. Public transport improvements and cultural shifts have also changed how young people value car ownership—no longer a top marker of independence.

A Fox Business report supports this, showing younger generations are increasingly wary of the financial burdens tied to personal vehicles.

Uber's Pitch to Gen Z: Freedom Without the Fuss

To stay relevant and expand its user base, Uber has launched features aimed directly at Gen Z. In 2023, the company rolled out Uber for Teens, allowing 13–17-year-olds to book rides and order meals under parental oversight. Built-in safety tools include live tracking, destination locks, and PIN verification.

In tandem, Uber launched Uber One for Students, a budget-friendly membership offering perks like free delivery, ride discounts, and cashback. The campaign's humorous ad featured actor Brian Cox as a hilariously cranky college freshman—catering perfectly to a generation that values personality in its advertising.

A Lifestyle Shift, Not Just a Trend

Uber's success with Gen Z isn't just about offering cheap rides—it's about aligning with a cultural moment. Gen Z is digital-first, financially cautious, and increasingly resistant to long-term commitments like car ownership.

As the Statista data shows, car ownership is far less important to Gen Z than to older generations. Uber recognises this and has strategically positioned itself as more than just a transport app—it's part of a lifestyle that prizes freedom, simplicity and sustainability.

In the long run, it's not just about who owns the road—it's about who drives the future. And for now, it looks like Uber is in the front seat.