# For the first time, Uber's growth amongt business travels has decreased



## BurgerTiime (Jun 22, 2015)

https://www.cnet.com/news/uber-sees-first-decline-in-passengers-lyft-increases-report-says/

Uber reportedly lost 1 percent of the ground transportation market. And in some cities, like San Francisco, it saw an 8 percent fall. Meanwhile, Lyft is on the rise.


by Dara Kerr
October 24, 2017 12:00 AM PDT








Uber may be seeing a drop in business passengers.

Uber
Uber is starting to see the effects of its tumultuous year.

For the first time, the ride-hailing company appears to have experienced a decline in business passengers. Certify, a management software company that tracks business expenses and travel receipts, said Tuesdaythat Uber has seen an average 1 percent decline in the ground transportation market. Meanwhile, Certify said Uber's rival Lyft has seen a 3 percent bump.

"The business traveler is more in the driver's seat than ever before when it comes to making purchasing decisions on the road," Certify CEO Robert Neveu said in a statement. "Whether it's a reaction to the latest headlines or the introduction of new features like tipping, the power of consumer choice has become a major factor in travel and entertainment expense spending."

Uber has been beleaguered by dozens of scandals over the last year. They kicked off with a #DeleteUber movement in January, then moved onto workplace sexual harassment allegations and an internal investigation led by former US Attorney General Eric Holder. In June, Uber's board of directors forced CEO Travis Kalanick to resign.

Now Uber is trying to turn things around with its new CEO, Dara Khosrowshahi, in charge. Khosrowshahi addressed Uber employeeswhen he came on board in August saying what got Uber successfully to where it is, "is not what's going to get us to the next level" and "this company has to change."

Uber's reported decline in business travelers is minimal, but it's notable since it's the first time the company has seen a loss of passengers. Certify says Uber owned 55 percent of the ground transportation market in the second quarter. But in the third quarter, it slipped to 54 percent. In its hometown, San Francisco, Uber's market share saw the biggest loss at an 8 percent decline, according to Certify.

Lyft, on the other hand, had its best quarter ever. It went from controlling 8 percent of the ground transportation market for business travelers in the second quarter to having 11 percent in the third quarter, according to Certify. For comparison, both taxis and car rentals also dropped 1 percent in the third quarter, to 7 percent and 28 percent, respectively.

Certify's data comes from its third quarter "SpendSmart" report, which is based on more than 10 million business traveler receipts and expenses. It's been tracking data on Uber and Lyft for the last three years.


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## Jesusdrivesuber (Jan 5, 2017)




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## The Gift of Fish (Mar 17, 2017)

Well, duh. Rideshare is very price sensitive - if you jack your prices up as Uber has done big time in SF with up front pricing, it loses business to a (now) lower price operator (Lyft).

I hear many complaints from pax about the higher fares, and I refer them to Lyft with my code. It all works out quite well; pax get lower fares and I get referral bonuses.


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## goneubering (Aug 17, 2017)

This is interesting news but one slightly weak quarter doesn't mean a whole lot.


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## The Gift of Fish (Mar 17, 2017)

goneubering said:


> This is interesting news but one slightly weak quarter doesn't mean a whole lot.


It means that since raising prices, Uber's ride volume has decreased.


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## goneubering (Aug 17, 2017)

The Gift of Fish said:


> It means that since raising prices, Uber's ride volume has decreased.


Which might make them more profitable.


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## The Gift of Fish (Mar 17, 2017)

goneubering said:


> Which might make them more profitable.


Uber is not profitable, so it can't be more profitable. However, they may lower their losses or even drift into profit because of this. It all depends if pax numbers continue to fall as well as what Lyft does, among other factors.


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## goneubering (Aug 17, 2017)

The Gift of Fish said:


> Uber is not profitable, so it can't be more profitable. However, they may lower their losses or even drift into profit because of this. It all depends if pax numbers continue to fall as well as what Lyft does, among other factors.


I think they're probably profitable right now if we don't count their SDC dreams.


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## Buckiemohawk (Jun 23, 2015)

For business class people, it's about the ability to get somewhere quick and easy. so many times in orlando, people wait an average of twenty minutes for an uber. Because the driver has no idea where they are going.


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## TwoFiddyMile (Mar 13, 2015)

Buckiemohawk said:


> For business class people, it's about the ability to get somewhere quick and easy. so many times in orlando, people wait an average of twenty minutes for an uber. Because the driver has no idea where they are going.


Correct. In Charlotte, the TNC stand is always filled with frustrated looking pax, and the taxi stand usually can supply cabs.
Why is that?
Oh yeah! Cause cabs cost enough for the drivers to jump through hoops to always be available to transport pax.


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## heynow321 (Sep 3, 2015)

TwoFiddyMile said:


> Correct. In Charlotte, the TNC stand is always filled with frustrated looking pax, and the taxi stand usually can supply cabs.
> Why is that?
> Oh yeah! Cause cabs cost enough for the drivers to jump through hoops to always be available to transport pax.


That warms my heart to hear. Drivers are wising up across the board


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## TwoFiddyMile (Mar 13, 2015)

heynow321 said:


> That warms my heart to hear. Drivers are wising up across the board


Shocked anyone would queue up to do a base rate of $0.62 per mile.


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## The Gift of Fish (Mar 17, 2017)

Buckiemohawk said:


> For business class people, it's about the ability to get somewhere quick and easy. so many times in orlando, people wait an average of twenty minutes for an uber. Because the driver has no idea where they are going.


That wouldn't explain the sudden transformation in Uber from non-stop growth in market share to a loss of market share this quarter. I doubt that Orlando drivers suddenly lost the ability to know where they are going.



goneubering said:


> I think they're probably profitable right now if we don't count their SDC dreams.


Again, no. The Financial Times reported last month on Uber's latest available financial performance. Uber stemmed its losses slightly from $708 million in Q1 to $654 million in Q2, So they went from a raging hemorrhaging of cash to a slightly less angry hemorrhaging of cash.

https://www.ft.com/content/b679df38-a3ad-11e7-9e4f-7f5e6a7c98a2


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## TwoFiddyMile (Mar 13, 2015)

The Gift of Fish said:


> That wouldn't explain the sudden transformation in Uber from non-stop growth in market share to a loss of market share this quarter. I doubt that Orlando drivers suddenly lost the ability to know where they are going.


Business travellers have limited time. They are figuring out it's not worth the wait, while drivers are logged out in the queue waiting for it to surge.
#uberfail
#saynotobaserate


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## Mars Troll Number 4 (Oct 30, 2015)

The Gift of Fish said:


> That wouldn't explain the sudden transformation in Uber from non-stop growth in market share to a loss of market share this quarter. I doubt that Orlando drivers suddenly lost the ability to know where they are going.


They are just all new.. it's rare to get an uber driver with 3+ months of experience here. Took me about that long to really figure out what i was doing and where i was going. (GPS WON'T get it 100%)

Orlando is an exceptionally terrible market, with an exceptionally terrible turnover.

53c a mile won't buy you much loyalty


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## rembrandt (Jul 3, 2016)

How was this study done without Uber supplying Business account details? If this was based on a survey funded by Lyft the scavenger , take it with a grain of salt.
Does this passanger loss equal to revenue loss ? You were offering free lunch and all of a sudden you started charging. Of course, less people are going to eat.


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## Mars Troll Number 4 (Oct 30, 2015)

Uber's revenue WILL FALL, as uber shifts from operating at a loss to turning a profit. They themselves do next to nothing... everything is subbed out.


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## goneubering (Aug 17, 2017)

The Gift of Fish said:


> It means that since raising prices, Uber's ride volume has decreased.


Actually no. Their total ride volume is up even though their market share slipped a miniscule 1% with business travelers.



Mears Troll Number 4 said:


> Uber's revenue WILL FALL, as uber shifts from operating at a loss to turning a profit. They themselves do next to nothing... everything is subbed out.


I doubt it. They're still growing.


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## dirtylee (Sep 2, 2015)

They get that data from cc receipts. What it doesn't say is how much the riders are spending. 

IDGAF, Lyft around here is short & shitty all day, everyday.


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## The Gift of Fish (Mar 17, 2017)

goneubering said:


> Actually no. Their total ride volume is up even though their market share slipped a miniscule 1% with business travelers.


Actually yes. The headline of the article says, "Uber sees first decline in passengers". Not "Uber sees first decline in revenue". Therefore, the analysis is of market share in terms of ride volume/passenger numbers, not revenue. Both are valid ways of measuring market share, but you got the two confused.


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## goneubering (Aug 17, 2017)

The Gift of Fish said:


> Actually yes. The headline of the article says, "Uber sees first decline in passengers". Not "Uber sees first decline in revenue". Therefore, the analysis is of market share in terms of ride volume/passenger numbers, not revenue. Both are valid ways of measuring market share, but you got the two confused.


Headlines rarely tell the whole story.


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## The Gift of Fish (Mar 17, 2017)

goneubering said:


> Headlines rarely tell the whole story.


Correct, you have to actually read the article for that.


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## goneubering (Aug 17, 2017)

The Gift of Fish said:


> Correct, you have to actually read the article for that.


Then why do you think Uber has seen a decline in passengers?


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## grayspinner (Sep 8, 2015)

Lyft rides to and from the airport let's pax earm airline miles for delta and jet blue. Since coming out with premier in my area, some business travelers have switched to lyft to earn the miles .


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## TNCMinWage (May 18, 2017)

The Gift of Fish said:


> Well, duh. Rideshare is very price sensitive - if you jack your prices up as Uber has done big time in SF with up front pricing, it loses business to a (now) lower price operator (Lyft).
> 
> I hear many complaints from pax about the higher fares, and I refer them to Lyft with my code. It all works out quite well; pax get lower fares and I get referral bonuses.


And you wind up driving pax around for lower fares for yourself too. Win?


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## The Gift of Fish (Mar 17, 2017)

TNCMinWage said:


> And you wind up driving pax around for lower fares for yourself too. Win?


Yeah, I'm a rideshare driver; I'm winning at life.


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