Uber Progress in US Slowed After Yr of Scandal, Says eMarketer
Uber Applied sciences’s development has slowed as a sequence of scandals has allowed the ride-hailing firm’s chief US competitor, Lyft, to seize extra market share, digital analysis agency eMarketer mentioned in a report on Monday.
The analysis agency has lowered its forecasts for Uber’s development for the subsequent a number of years. It initiatives 48 million US adults will use Uber not less than as soon as this yr, up 18 % from final yr however effectively off eMarketer’s earlier forecast of greater than 51 million.
eMarketer primarily based its evaluation on knowledge from Uber and Lyft, equivalent to journey numbers and app downloads, in addition to buyer surveys from researchers at JP Morgan and different companies.
The report quantifies the impact of a sequence of scandals at Uber final yr, which included an inside probe of sexual harassment and office behaviour; a US Division of Justice investigation into whether or not Uber managers violated US legal guidelines in opposition to bribery of international officers; a lawsuit by Alphabet alleging commerce secrets and techniques theft that Uber settled for $245 million (roughly Rs. 1,700 crores); and the departure of Uber’s chief government officer, who was pushed out by traders involved concerning the rising listing of issues.
Uber didn’t reply to a request for remark.
In the meantime, Lyft has grown rapidly, including greater than 160 cities final yr, benefiting from Uber’s tarnished picture and as a later entry into markets the place individuals are already aware of ride-hailing providers, eMarketer mentioned. On Monday, Lyft mentioned it has 35 % of the nationwide ride-hailing market, and in 16 US markets its share exceeds 40 %.
“Uber’s model picture took a fair larger hit than anticipated because it grappled with a sequence of scandals and PR disasters in 2017,” mentioned Shelleen Shum, eMarketer’s forecasting director. “Lyft, which had been quickly increasing its protection, seized on the chance to model itself as a extra socially acutely aware various.”
The analysis agency mentioned it has lowered its forecast for Uber’s development yearly by 2021, reflecting the corporate’s aggressive drawback after final yr’s issues. eMarketer’s earlier projections pegged the variety of Uber customers in 2017 at about 44 million, however the precise quantity ended up being fewer than 41 million.
Even so, Uber stays the dominant US ride-hailing firm. On the finish of this yr it would have about 77 % of the market, down from 90 % in 2016, whereas Lyft can have 48 %, up from almost 29 %, in accordance with eMarketer.
eMarketer’s projections for 2022 present Uber with almost 74 % of consumers and Lyft with 59 % of ride-hailing clients. Some individuals use each providers.
Lyft operates in roughly the identical variety of US cities as Uber, in addition to in Toronto. Uber operates throughout the globe, though it has retreated from Southeast Asia, Russia and China after dropping billions of competing with native rivals.
© Thomson Reuters 2018