Growth Of Ride-Hailing Services In NYC Fuels Arch Auto Parts' Business

Growth Of Ride-Hailing Services In NYC Fuels Arch Auto Parts’ Business

In the past four years, NYC ride-hail app pickups have grown from zero to 15 million trips per month, according to NYC Taxi & Limousine Commission data.

Arch Auto Parts, an auto parts supplier in Brooklyn, Queens and Long Island, New York, has reported strong sales of OE-quality parts resulting from explosive growth in rideshare services Uber, Lyft, Juno and Via, and on-demand delivery services. In the past four years, NYC ride-hail app pickups have grown from zero to 15 million trips per month, according to NYC Taxi & Limousine Commission (TLC) data, via toddwschneider.com. About half of NYC ride-hail pickups are in the outer boroughs, where taxis have historically been less prevalent. Ride-hail app services now make approximately 10 times more pick-ups than green and yellow taxis combined in the outer boroughs.

The surge in Uber, Lyft and other commercial drivers is good news for Arch Auto Parts, which reports a spike in demand for competitively priced, OE-quality parts. To maintain their TLC license, vehicles used for Uber and Lyft must pass inspections at least every four months, so drivers stay on top of service and repairs and closely track expenses. Arch Auto Parts says it provides these independent contractors in-stock availability of OE-quality parts, at deep discount prices typically only available to commercial fleets.

“Many Uber and Lyft drivers log more than 50,000 miles per year, so they quickly reach their vehicle manufacturer’s warranty limit. They still want OE-quality parts, but without the high dealer prices,” said Lucy Henner, Arch Auto Parts vice president of marketing. “These high-mileage drivers are opting for high-quality parts not only for better performance, but also to reduce their total service expenses. Labor charges are the biggest component of most repair bills. They don’t want to pay labor charges to service the car twice, when an OE-quality part will often last twice as long.”

In New York City, ride-hailing services made 65 percent more pickups than taxis by late 2017, according to NYC TLC data. In January 2018, there were approximately 564,000 daily ride-hail app pickups, including Uber, Lyft, Juno and Via. Compared to 12,600 total yellow taxis dispatched per week in January 2018, there were 58,500 vehicles providing Uber service, many of which also work with Lyft, Juno, Via or other rideshare or delivery services. In Manhattan, taxis and ride-hail app services now make about the same number of trips.

Strongest ride-hail growth is in Queens and Brooklyn. Based on data Uber provided the New York Times, more than 50 percent of NYC Uber rides originated outside Manhattan in 2017­, even excluding pickups from JFK and LaGuardia (LGA) airports. Over half of the areas where Uber reported big increases in pickups were in Queens, including St. Albans, South Jamaica, Laurelton, Springfield Gardens, Rosedale, Bayside and Glendale. Long Island City, Queens now hosts major driver centers for Uber and Lyft, as well as a TLC office. Brooklyn has seen similar annual growth, with almost four times more weekly Uber pickups in the Flatlands neighborhood, and three times more pickups in Starrett City.

Uber, Lyft, Juno and Via pickups from JFK and LaGuardia airports roughly tripled from 2016 to 2018. Ride-hail services and taxis now make about the same number of airport pickups. Arch Auto Parts stores near JFK and LGA airports report a similar increase in rideshare drivers at their stores.

Arch Auto Parts offers drivers find the highest-quality national brands, including many of the OE parts that were specified and engineered for domestic and import vehicles on the assembly line. The company says customers who want to maintain or restore the comfort and performance of their vehicle often find parts from their vehicle’s OEM at Arch Auto Parts, including parts from Bosch, DENSO, Continental, Aisin, Arnott, Akebono, Delco, Motorcraft, NGK, Trico, Hella, Hengst, Chemours (formerly Dupont), Sylvania, TRW, VDO and more.

For example, for Toyota Camrys, one of the most popular Uber vehicles, Arch Auto Parts stocks parts from the OEM for the radiator, compressor, alternator, starter, cabin filter, oxygen sensors (O2 sensors), brake pads, water pump, timing kits, freon refrigerant and more. With their Arch Loyalty discount, drivers typically save 15 to 40 percent over prices at other parts stores.

Arch Auto Parts also has become one of the top choices for many independent contract drivers for delivery services, including Caviar, Uber Eats, DoorDash, Postmates and GrubHub. The company says delivery drivers appreciate the convenience of picking up car parts almost as fast as they pick up meals for delivery. Ninety percent of shoppers find the OE-quality parts they need in-stock at the counter at Arch Auto Parts, according to the company. Online shoppers will find most parts ready for in-store pick up in 30 minutes or less.

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