Uber CEO Acknowledges 'Taylor Swift Effect,' Says Ride-Hailing Giant 'Definitely Ups Its Game...When She Comes To Town'

Uber Technologies Inc UBER CEO Dara Khosrowshahi has confirmed the existence of the “Taylor Swift effect,” acknowledging the significant boost in business during the artist’s concerts.

What Happened: In a recent interview with CNBC’s “Squawk Box,” Khosrowshahi revealed that Uber’s local teams prepare for a surge in ride requests during Swift’s concerts, reported Business Insider.

“Uber definitely ups its game for Taylor when she comes to town.”

He also noted that this preparation extends to the surrounding hotels and areas. The impact of Swift’s “Eras Tour” on local economies has been compared to that of the Super Bowl by companies such as Bank of America and Mastercard.

Swift’s influence has also been observed in the NFL, with the Kansas City Chiefs experiencing a significant increase in merchandise sales after her publicized relationship with player Travis Kelce. This “Swift effect” has been credited with attracting a new subset of younger fans and women to the NFL.

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However, not all companies are embracing the Taylor Swift phenomenon. Best Buy Co Inc BBY CEO Corie Barry expressed in October that consumer expenditure on Swift’s concerts might be affecting the company’s profits negatively. Barry noted that consumers appear to be prioritizing spending on Swift tickets and “funflation” experiences over high-value electronic goods.

Despite the positive impact, Khosrowshahi indicated that Swift’s potential influence on Uber’s bottom line may have a limit, given the company’s high volume of trips.

“When you’re talking about billions of trips, we’re almost at 10 billion trips, you know Taylor Swift is a positive but it’s not enough to show in the overall trends,” Khosrowshahi said, discussing Uber’s fourth-quarter earnings.

Why It Matters: The “Taylor Swift effect” has been a recurring theme in the business world. The pop star’s concert tour was estimated to have added $5 billion to the economy by the Federal Reserve in 2023. Her Eras Tour also broke a Guinness World Record for the highest-grossing music tour, further solidifying her impact on the industry.

Swift’s influence extends beyond the economy. In 2023, she was named Spotify’s top artist with 26.1 billion streams. Her impact on the music industry was further solidified in 2024 when she boosted Grammy viewership by 34% to an average of 16.9 million, marking the highest numbers since the pre-pandemic show in 2020.

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