Transportation
Ride-Hailing Companies Uber and Lyft Boost Share of Expense Spending
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Uber and Lyft each gained 2% in second-quarter expense spending, after a pause in the previous quarter, as the ride-hailing companies grabbed business at the expense of taxis and car-rental businesses, according to the results from a report released Thursday from Certify, an expense management software provider.
Uber controlled 55% of the ground travel expenses market for business travelers, while Lyft had 8%. Rental cars and taxis each had a two-point decline in the period. Rental cars controlled 29% of the ground-travel expenses for business travelers and taxis had 8%. Certify noted that it was the first time the taxi category registered just single digits in share of rides.
The taxi is the biggest loser in year-over-year trends, dropping six percentage points since the second quarter of 2016. Certify projects taxi will fall under 1% of ground transportation expenses and receipts by the first quarter of 2018.
Ride-hailing companies surpassed taxis and rental-car companies in ground travel expenses for the first time in the third quarter last year.
“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, chief executive officer of Certify.
The report tracks business travel expense spending across major categories such as food, airlines, lodging and car rental. The report analyzes data from millions of expenses and receipts processed through the Certify system.
In other categories, Starbucks continues to be the most-expensed restaurant, nearly four percentage points ahead of McDonald’s.
Delta remains atop the air travel category, and Hampton Inn retains its top ranking as the most expensed hotel brand.
Transactions for alternative hotelier Airbnb grew 31% in the second quarter, although it remains a small share of the total lodging category with less than 1% overall.
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