A user requesting a ride through the Uber mobile app platform. Photo courtesy of Uber.
In the third quarter 2016, ride-hailing services (Uber, Lyft) gained an additional 6% in total share of rides from second quarter 2016 (46%).
According to the Certify SpendSmart Report for Q3 2016, ride hailing now accounts for 52% of all ground transportation transactions — car rental, taxi, and ride hailing. Car rental accounts for 36% of transactions while the taxi industry only takes 12%.
The SpendSmart Report analyzes the latest data and analysis of U.S. business travel expense spending trends.
While ride-hailing services like Uber and Lyft have been steadily taking share from car rental and taxi, Q3 marks the first time that ride hailing made up the majority of expenses and receipts for business travelers, according to the report.
Uber takes the top spot in the ride-hailing category with 48% of ground transportation transactions. Lyft accounts for 4% in ride hailing, according to the report.
The taxi industry has been hit the hardest when it comes to the corporate travel ride-hailing trend; it’s down more than 63% since first quarter 2014. According to the report, taxi can cost as much as 65% more than ride hailing per transaction.
Some of the top cities for ride-hailing services include San Francisco, Chicago, New York, Boston, and Los Angeles. New York is the most popular city for business travelers to use taxis.