Uber’s Growth Is Stalling Among U.S. Business Travelers
Uber is leading the corporate travel market, but Lyft is gaining ground in the sector over its ride-hailing rival. Skift
Uber’s huge expansion in corporate travel in the U.S. is trailing off, according to the latest data from expense technology company Certify, perhaps signaling that Uber will face new challenges in expanding its share of the business travel ground transportation market.
Uber grew its share of corporate travel ground transportation expenses in the U.S. among Certify’s clients by just one percent in the first quarter of 2017, compared to two percent growth for rival Lyft. Uber maintains a commanding lead in business travel ground transportation, comprising 53 percent of the ground travel expenses tracked by Certify, while taxis have fallen to just 10 percent.
Lyft, while now growing at a faster rate than Uber, was only expensed by six percent of travelers.
This is the first time in Certify’s tracking that Lyft’s growth has outpaced Uber’s; Certify analyzed more than 10 million business travel receipts for the report. (Car service rides aren’t included in the data.)
“While convenience and affordability helped propel Uber to the top of the corporate traveler’s preferred vendor list, the latest… data shows how leaders in every category can just as quickly find themselves vulnerable to broader trends and growth among the competition,” said Certify CEO Bob Neveu. “It’s important to note that ride-hailing is still in its early days as an industry, one Uber essentially invented, so there’s sure to be much more change and excitement ahead.”
The report also breaks down which U.S. markets are adopting ridesharing. However, among them, New York City and Chicago are both posting the strongest numbers for taxis. Overall, ridesharing is already deeply entrenched in the habits of business travelers.
A look at pricing trends shows that the average Lyft transaction remains cheaper than both Uber and taxis.
|Q1 2016||Q2 2016||Q3 2016||Q4 2016||Q1 2017|
Check out the full quarterly report below.