The traditional taxis seem to have a losing battle on their hands – ride hailing services such as Uber or Lyft have been gaining the upper hand when it comes to business travelers, according to a recent survey.
During the second quarter of the year – the three months ending in June – Uber took over from taxis as the most used means of ground transportation, said expense management system provider Certify. Uber took charge of 55 percent of ground transportation payments while taxis were at 43 percent of receipts. The market gain is a significant one when compared to the first three months of the year, when during the first quarter Uber Technologies accounted for 46 percent of receipts tracked by Certify while taxis took home 53 percent of them. “Established travel providers will need to adapt quickly or face further market share erosion to the sharing economy,” commented chief executive officer Robert Neveu in a statement. Certify used data from the 28 million trip receipts its North American clients account for on an annual basis, though it doesn’t account for receipts from business travelers that use other services to track expenses.
Uber has been gaining ground since it was established just a few years ago through its smartphone application used to connect customers with cars when they need transportation. While business travelers are quickly migrating towards services such as Uber, it’s good to know that some reservations about safety and liability should be addressed – Uber’s drivers might not be regulated by the government in certain cities, while taxis are all governed by licensing authorities.