Lyft and Uber grab extra business from taxis and rental cars

New data revealed has shown that business travellers are increasingly turning to Uber and Lyft whilst taking fewer rental cars out onto the road.

A travel management firm, Certify, who handles corporate travel transactions have analysed more than 10 million receipts filed in the second quarter. It has since found that the amount of money which is spent on rental cars and taxis have fallen by two per cent. Rental cars controlled approximately 29 per cent of the ground-travel expenses for business travellers and taxis had eight per cent.

Meanwhile, both Lyft and Uber grew their share of the ground transportation market by approximately two per cent. Uber controlled 55 per cent of the ground travel expenses for business travellers had eight per cent.

“The revolution in ground transportation we’re seeing today led by Uber and Lyft has far reaching implications for the future of corporate travel,” said Robert Neveu, CEO, Certify.

For numerous corporate travellers, the swap from renting a car to catching an Uber or Lyft helps to understand why companies such as Hertz have found it difficult in recent years. During the second quarter, Hertz lost $28 million. The stock, which traded at roughly $125 in August 2014 dropped to roughly $17.

Additionally, taxi operators in large cities are reeling due to the rise in the popularity of ride sharing. In the early months of this year, a New York City taxi firm sold for $241,000. In comparison, four years ago one sold in the same location for $1.3 million.

Overall, the usual cost for a taxi business ride is $31.06 in the second quarter. In comparison, the charges for Uber and Lyft were $24.49 and $21.28, respectively.