If you thought that Uber and Lyft were mainly for the weekend party crowds, get ready for a surprising set of findings.
A study released by Certify, an online travel and expense management service provider, show that the two dynamic ride-sharing services have commanded close to 49 percent of the ground transportation market in business travel during the second quarter of this year. The statistics show that Uber and Lyft continue to take over where taxis and shuttles once ruled.
The report shows that taxis have seen a whopping 51 percent decline in business travel during the past two years. Uber and Lyft have become the preferred choice for regular commuters, leisure travelers and, increasingly, the dominant mode of ground transportation for business travelers.
The study took into account a cross-section of data to see how the combined services of Uber and Lyft have emerged as the leaders of ground transport. The data comes from receipts and expenses from more than 10 million business travelers.
The data show that though taxis are the worst affected, rental cars and airport shuttle services have suffered as well. This is shaking up the ground transportation industry big time, just as Airbnb did to hotels.
During the second quarter of 2016, taxis managed to take about just 14 percent of the market, while rental cars saw their business drop to 37.3 percent. This was a 17.4 percent drop from the 54.7 percent market share rental cars obtained during the same quarter two years ago.
Travelers have been jubilant about low gas prices, and we have seen an incredible number of road trips taken across America during the last two years. Yet, business travelers are now shying away from the traditional modes and opting for the low-cost and low-hassle options like Lyft and Uber.
According to the Certify second-quarter 2016 study, the costs for an Uber dropped by 15.5 percent from 2015, while the average cost for Lyft dropped 7.7 percent. On the other hand, the cost of a business traveler taking a taxi rose by more than 15 percent from the same time last year.
Then, factor in the incredible convenience of the Uber and Lyft apps, which make hailing a ride much easier than calling a cab used to be. And since the apps are already connected with a traveler’s credit card or PayPal account, one doesn’t have to worry about carrying cash or whether a card will work.
You don’t even have to worry about facing surly drivers asking you to pay more to go to the suburbs, or other outer locations. Rush hour prices may be hiked, but one has the choice to opt out as easily.
There are many other reasons why these services are dominating business travel. The receipt for the ride comes in instantly via email or in a credit card statement, a big boon for business travelers when they have to submit expenses for reimbursements.
Lyft is garnering a better reputation at this, because its service is easier to use for expense purposes, and is more methodical with documentation.
The market is growing at an incredible pace for Uber and Lyft. They are not just competing with their older counterparts but between themselves. While Uber is still the bigger, more popular service, Lyft is making progress with its deals, ease of use and benefits.
The Certify study shows that it is actually growing at a faster rate, and has expanded 176 percent in Q2 2016, compared to Uber’s 145 percent.
This healthy competition is in stark contrast to the lack of change and pace in the taxi business. Only New York City shows a distinct loyalty for taxis, but one wonders how long that will last.
