Brief Report: Uber is a top brand for business expenses

Dive Brief:

  • Uber was the brand most frequently named on business expense reports in 2018, according to data compiled by expense software company Certify. With 11% of all transactions on the platform last year, Uber was the top brand for the third year in a row.
  • With 2.8% of transactions, Lyft was the sixth most expensed brand, continuing massive growth for the apps over traditional taxi services. Uber and Lyft collectively accounted for nearly 92% of ride expenses in 2018; at the beginning of 2015, the apps represented less than 50% of ride expenses.
  • While meals remained the top expense category, Certify found digital delivery brands were significantly higher in 2018. Grubhub accounted for 36% of transactions, Uber Eats had 25% and DoorDash had 21%.

Dive Insight:

The Certify report — based on more than 50 million receipts processed by its software last year — reflects just how dominant digital brands have become in the world of travel. Beyond convenience, price has played a big role in their surge; according to Certify’s data, the average taxi ride was more than $33, compared to $26 for Uber and $24.50 for Lyft. However, this discrepancy could also reflect businesses using taxis for longer or more expensive trips.

The fact that Uber and Lyft have so rapidly supplanted taxi services for business use is yet another signal of their massively disruptive presence, and is another positive sign ahead of both companies’ expected IPO filings this year.

Their supplanting of taxis has led to significant upheaval in major cities, but has also meant regulations that could undercut some of their advantage going forward. New York was the first city to institute a minimum wage for ride-hailing service drivers, and cities including Chicago and Seattle have weighed fare increases to give money back to drivers.

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Filed Under: Transportation Top image credit: Flickr / senatormarkwarner Original Article

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