Technology is reshaping the ride-hail sector in ways that extend far beyond convenience, according to new research published in the Strategic Management Journal. The study suggests that navigation apps have played a decisive role in making ride-hail work more accessible, particularly for drivers with limited experience or confidence navigating complex urban road networks. By lowering skill barriers and reducing stress, these tools are helping to open up opportunities that might otherwise remain out of reach.
The research was carried out by academics from the National University of Singapore, who examined how drivers respond to the presence or absence of navigation technology in their work. Through a series of carefully designed laboratory and field experiments conducted in Singapore between July and August 2024, the researchers explored how drivers make decisions about accepting jobs, how they value technological support, and how that support affects their wellbeing while on the road. Their findings indicate that navigation apps are not merely helpful aids, but a fundamental factor shaping participation in the ride-hail labour market.
A central insight from the study is that navigation technology can be the deciding factor in whether some drivers choose to accept ride requests at all. When drivers were asked to imagine working without access to a navigation app, many reported feeling ill-equipped to manage unfamiliar routes or heavy traffic conditions. With the app available, however, they felt able to take on work they might otherwise have declined. This sense of empowerment was not only subjective; physiological measures showed that drivers using navigation apps experienced lower stress levels, including reduced heart rates during their shifts.
The researchers describe this effect as a form of ‘deskilling’, where technology simplifies complex tasks and reduces the level of expertise required to perform them effectively. While public debate often frames technology as a threat to jobs, the study offers a contrasting perspective. By deskilling certain aspects of ride-hail work, navigation apps make the role accessible to a broader pool of workers. In doing so, they can create employment opportunities rather than eliminate them, particularly for individuals who lack extensive driving experience or detailed local knowledge.
To better understand how drivers value this technology, the experiments varied both the availability of navigation apps and the commission rates charged by ride-hail platforms. Drivers were asked how much of their potential earnings they would be willing to give up in exchange for guaranteed access to navigation support. The results showed clear differences based on experience: less experienced drivers were prepared to sacrifice a larger share of their earnings to use the app, reflecting how crucial it was to their ability to work confidently and comfortably. More experienced drivers, by contrast, were generally less dependent on the technology and more willing to operate without it.
The study also explored how drivers balance productivity against amenity when making decisions. Some prioritised earning more quickly, while others placed greater value on reduced stress and a smoother working experience. Navigation apps emerged as a key amenity, particularly for those who rated themselves as less skilled. These drivers were significantly less likely to accept jobs without technological support, whereas more confident drivers showed greater flexibility. As one interviewee put it, without a map app, doing the job would not be possible.
Overall, the findings underline the potential for technology to make work both more inclusive and less taxing. By lowering barriers to entry and easing the cognitive and emotional demands of driving, navigation apps help narrow gaps between workers with different skill levels. From a business standpoint, the researchers argue that such deskilling technologies can also help address labour shortages by expanding the available workforce. Rather than viewing technology solely as a substitute for human labour, firms may see it as a strategic tool for broadening participation and supporting workers more effectively.
More information: Pinchuan Ong et al, Deskilling technology affords work amenity, increases labor supply, Strategic Management Journal. DOI: 10.1002/smj.70017
Journal information: Strategic Management Journal Provided by Strategic Management Society