Uber Takes Majority of Ground Transport Market for U.S. Business Travelers
When Uber is winning, taxis aren’t the only ones losing. The ride-hailing startup increased its popularity among business travelers last year while use of rental cars and other traditional ground transportation options declined, according to Certify, the second-largest travel and expense management software provider in North America.
Uber Technologies Inc. accounted for 52 percent of total ground transportation transactions through Certify’s system last quarter, amassing a majority of the market for the first time. Uber first overtook rental cars by transactions a year earlier, though rental car bookings accounted for significantly more revenue.
Car-rental and taxi services bore the brunt of Uber’s expansion, dropping to 33 percent and 11 percent, respectively, in the fourth quarter of 2016. Taxis, in particular, saw its toughest year in 2016, down more than 37 percent since the first quarter of 2014, Certify said.
U.S. ride-hailing rival Lyft Inc. also grew its share of business expenses. It doubled its share, albeit small, to 4 percent last quarter. Home-rental website Airbnb Inc. also doubled its transactions each year since 2014, Certify said.
Uber’s growth may be driven in part by its low cost. The average cost of an Uber ride on Certify expense reports last quarter was $24.75. It was $24.99 for Lyft and $34.62 for cabs.