SIGNATURE WORK
CONFERENCE & EXHIBITION 2023

Uber claimed its ambitions to become a carbon-free platform by 2040 and introduced Uber Green, electric and hybrid cab options, in 2020. Despite all the effort, only 1.35% of all Uber rides globally were made by Uber Green cabs. We hypothesized that the reason behind that is possibly the default effect, the tendency to choose the first option in the presence of others. To test our hypothesis, we conducted an online experiment (n=256) where the subjects were in the four study groups: X-Default, Green-Default, expensive X-Default, and expensive Green-Default. The first two had UberX and Uber Green as the default options with no price difference, and the latter had UberX and Uber Green as the more expensive default options. As a result of the study, we determined that shifting Uber Green from the second position to the first one increased its popularity by 14%. Besides, making the default more expensive decreases UberX and Uber Green usage by 10% and 34%, respectively. The post-experimental survey showed that people underestimated the effect of the order on their choices (28.6/100). Besides, it displayed that belonging to the Green-Default and expensive Green-Default groups increased the subject’s perception of the significance of sustainability in different spheres of life, not limited to transportation. The results of our study can be used by Uber and other companies that want to promote sustainable consumption. Additionally, the researchers can use our data to improve further our understanding of using green default effect nudges.