Lyft gains on Uber while taxis tank, survey finds
“If you’re a taxi provider, you’ve got to get a new game plan.” Robert Neveu, CEO of expense management software company Certify
SAN FRANCISCO Lyft has chipped away at the market share held by its much larger ride-hailing rival, Uber, at least when it comes to business travelers.
After notching slight gains in the second through fourth quarters of 2016, Lyft’s share jumped nearly 3 percentage points quarter-to-quarter in Q1 and Q2 of this year, from 7.7% at the end of 2016 to 9.8% in the first quarter and 12.5% in the second.
That’s the same period in which Uber has been grappling with an incessant stream of issues ranging from charges of sexual discrimination to investigations into questionable business practices.
The data come from a survey of business users’ credit card spending out Thursday from expense management software company Certify, which analyzed data from 10 million receipts and expenses provided by 2,500 corporate clients.
Despite Lyft’s improvement, Uber continues to have a dominant position in the U.S. ridehailing game, with 87.5% of the market, according to Certify.
Michael Goodwin, head of business development at Uber for Business, suggested Certify’s data likely did not provide a full picture of Uber’s corporate business.
“We are seeing more organizations partner with us because we can provide a centralized bill, which eliminates the need for rides to flow through expense platforms in the first place,” Goodwin told USA TODAY.
Lyft is also pushing to woo business customers. Both Lyft and Uber have integrations with Certify; expense account processing is made easier when a traveler opts for an integrated partner.
“Our goal is to provide reliable, easy-to-adopt and cost-effective transportation solutions to make Lyft the preferred partner for businesses,” David Baga, Lyft’s chief business officer, told USA TODAY.
While Uber may have ceded some passengers to Lyft, it has still managed to grow largely by raiding businesses that used to be business traveler mainstays: rental cars and taxis.
When factoring in the losses to those transportation categories, Uber and Lyft increased their share of the business transportation market by 2 percentage points last quarter, according to Certify data. The car rental industry’s share of the market dropped 2 percentage points to 29%, and taxis dropped 2 points to 8%.
“If you’re a taxi provider, you’ve got to get a new game plan,” Certify CEO Robert Neveu said.
Uber has a market valuation of nearly $70 billion compared to Lyft’s $7 billion.