Uber has long been the market leader in rideshare services. But Lyft is gaining ground due for a number of reasons.
Uber remains the largest rideshare service available to business travelers. But is it the best?
A new report indicates that Lyft is growing its market share with each passing year, which naturally cuts into Uber’s own market share. See the chart below for a glimpse at how the market share of each company has shifted in recent years:
Why is Lyft growing its market share while Uber loses ground? Here’s a look at everything you need to know about this new report, as well as key factors in the future of rideshare and car services.
Uber Hurt By Scandals
Uber has been in the news a lot the last few years, and not for good reasons. The company has been consumed by scandal after scandal, including:
- Sexual harassment and gender bias charges
- Alleged intellectual property theft
- Violation of Apple policies
- Poor diversity
- Stiffing drivers on pay
And that’s only a sample of Uber’s many scandals. Needless to say, when negative stories about a single company continually turn up in the news, consumers rightfully look for alternatives — and Lyft has clearly benefited.
Lyft Takes Advantage to Grow Footprint
Lyft has taken advantage of the hits to Uber’s reputation — and the statistics show it. In 2017, Lyft gave 375.5 million rides, which was more than double the amount it gave in 2016.
What was the key to Lyft’s growth? Increasing its number of drivers. Once upon a time, there was no guarantee that you could get a Lyft in some cities, and it was far easier to find an Uber in certain locations. That’s no longer the case, as Lyft has expanded to all 50 states and nearly all cities that would have sufficient demand for its services.
Taxis Continue to Take a Hit
While Lyft continues to cut into Uber’s market share, taxis continue to lose ground to rideshare services in general. This new report indicates that taxis represented about 37% of all ground transportation services for business travelers in 2014. In 2018, that number has fallen to just 6%.
And here’s another interesting finding: Rideshare services are cutting into rental car services, too. In 2014, car rentals represented 55% of all ground transportation services for business travelers. In 2018, that number has fallen to 23%.
The Future of Rideshare and Car Services
There remains doubt and uncertainty around the future of rideshare services. Drivers make almost no money for their time and effort, and rideshare companies are living off injections of capital from investors — they aren’t profitable or self-sustaining at this point.
This doubt and uncertainty makes it difficult to forecast the future of car rentals, taxis and rideshare providers. But we do have an indication of what business travelers want most from car services, which can provide a roadmap for how this collection of companies can gain more market share and establish a brighter future.
Need Support for Ground Transportation?
No matter how ground transportation changes in the coming years, you can always count on JTB Business Travel for booking and management. As a comprehensive corporate travel agency, we help companies save money while helping travelers enjoy more convenient, more streamlined travel experiences.
Contact us to learn more about our services as a business travel agency.