Yes, “the Taylor Swift effect” is real.
Just ask Uber’s CEO.
“Uber definitely ups its game for Taylor when she comes to town,” Uber CEO Dara Khosrowshahi said in a Wednesday interview on CNBC’s “Squawk Box.”
Khosrowshahi said that not only do local Uber teams plan specifically for a higher volume of people calling for a ride during the concerts, but that extends to the surrounding hotels and areas as well.
Uber isn’t the only corporation to recognise the “Taylor Swift effect.” According to a recent Bank of America study report, Swift’s “Eras Tour” has a comparable economic impact to the Super Bowl on the towns and cities she visits.
The survey highlighted areas such as Pittsburgh, where average household restaurant spending climbed by $77 during Swift’s concert month. In Philadelphia, hotel revenue reached a record high since the pandemic in May 2023, when Swift performed three gigs.
Swift’s “Eras Tour” performances led to an increase in revenue for local businesses, as detailed in a report by Mastercard.
According to the data, spending growth at eateries soared by 68% per day within a 2.5-mile radius of stadiums in cities visited by Swift, while spending growth at accommodations increased by 47%.
The NFL has also greatly profited from Swift’s fame, with the Kansas City Chiefs’ Travis Kelce collecting 2.5 million followers since his friendship with the songwriter became public. Swift’s attendance at a Chiefs game in September resulted in a roughly 400% boost in Kelce merchandise sales across Fanatics web stores.
During his annual pre-Super Bowl news conference, NFL Commissioner Roger Goodell described “the Swift effect” as a positive, claiming it drew a new subset of younger fans and women this season.
CBS also announced that the Chiefs received the most viewers in the AFC Championship against the Ravens, with more than 55 million. During the Chiefs’ game versus the Bills, the network announced its biggest playoff viewership in history.
Not every corporation is pleased with Taylor Swift’s popularity; nonetheless, Best Buy CEO Corie Barry stated in October that consumer spending on Swift’s performances may be reducing her company’s revenues. According to Barry, consumers prefer to spend their money on Swift tickets and ‘funflation’ events rather than expensive electronics.
While Uber appears to be eager to anticipate any more income generated by Swift’s tour schedule, Khosrowshahi suggested that Swift’s potential impact on the bottom line may be limited.
“When you’re talking about billions of trips, we’re almost at 10 billion; you know Taylor Swift is a positive, but it’s not enough to show in the overall trends,” he added, referring to Uber’s fourth-quarter results.