Uber Growing as Cab and Rental Business Transactions Shrink

Uber won the majority of total ground transportation transactions last quarter for the first time since the ride-hailing startup started up. According to Certify, the second-biggest travel and expense management software provider in North America, Uber Technologies Inc. had 52 percent of the total ground transportation transactions during the last quarter of 2016.

Last year Uber has already become more popular for business travelers than rental cars as measured by transactions, though rental car bookings still accounted for a bigger share of revenue.

As Uber continues to grow, taxis and rentals continue their decline. During 2016’s Q4 rentals had 33 percent of the market while cabs had only 11 percent. For taxis 2016 was a pretty tough year, down over 37 percent since Q1 of 2014, according to Certify.

Uber’s other competitor in the ride-hailing, high-tech niche, Lyft Inc., also grew, doubling its share from 2 percent to 4 percent in Q4 2016. The apartment rental website Airbnb Inc. also doubled their transactions every year since 2014, according to Certify.

Part of what is driving Uber’s fast growth is its low cost. On average, a ride with Uber, as reported on Certify expense reports, was $24.75 last quarter. For Lyft it was $24.99, and for a taxi, $34.62.

James Cannon

About James Cannon

James Cannon is an experienced hedge fund analyst. He has served on the advisory boards for various different Fortune 500 companies as well as serving as an adjunct professor of finance. James Cannon has written for a variety of Financial Magazines both on and off line. Contact James at james[at]businessdistrict.com