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New Study Finds Taxis are Losing Business-Travel Customers to Rideshare Companies

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Rideshare companies like Uber are beating out taxi companies in the business travel market

Rideshare companies like Uber and Lyft are the perfect mode of transportation for people that don’t have a car—especially if someone is on business in a city they don’t know. The travelling business professional’s preference for rideshare companies is becoming more and more apparent, which a recent study from Certify showcases.

Despite the fact that taxi drivers in New York City are still getting more trips in than rideshare companies like Uber and Lyft, there is still one area that rideshare companies come out on top. The new Certify study has found that taxi rides have declined significantly in the lucrative business-travel market with many traveling business people choosing to take rides with a rideshare company instead.

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The study, which examined more than 10 million travel receipts and expense reports, found that the change in business travel patterns has been dramatic during the last two years. In the second quarter of 2014, taxis had a 73.70% share of business rides with Uber coming in second with 25.96% and Lyft barely making the scoreboard with a 0.34%. In 2016, the roles had switched with Uber leading with a 72.53% and taxis receiving a 22.27%. Lyft had the biggest increase with 5.20%.

This means that taxi took a 51% market share hit in business travel in only two years.

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Taxis aren’t the only transportation businesses that are taking this hit. Rental-car companies have also seen some of a drop in business due to rideshare companies. Over the same two period time, rental car use in business travel dropped from 54.7% in 2014 to 37.3% in 2016.

If this isn’t proof that rideshare companies are changing how people travel, then we’re not sure what is.

News Source: Digital Trends