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Research Report | January 2017

Uber & the Ride-Sharing Market: The $650 Billion Question

The top five riding-share apps, including Uber and Lyft, could see 10x revenue growth over the next 10 years within a $650 billion market opportunity and the potential to disrupt several industries involved in human and non-human mobility, according to a new SharesPost research report on riding-sharing companies.

The 70-page report is the most comprehensive to date on the ride-sharing economy and includes a survey of 5,500 mobile phone users about their experiences using ride-sharing apps. The report also includes a firsthand account from SharesPost’s research head, Rohit Kulkarni, who got behind the wheel to learn firsthand about both the driver and consumer experience.

Uber has a dominant leadership position in ride-sharing: 76% of ride sharing app users use Uber most frequently, per our survey, and more than 70% of consumers who haven’t used ride-sharing apps are familiar with Uber’s brand name, based on both unaided & aided brand awareness test;

Exhibit 16: Which of the following ride sharing or taxi hailing apps have you used most frequently?
Source: SharesPost Research; N=5,475 survey respondents; 2,063 users answered the aforementioned question;

Our survey highlights the potential of ride-sharing apps to provide a viable alternative for car ownership. We observed marginally higher likelihood of ride sharing usage among people who do not own cars and a marginally lower likelihood of purchasing a car among people who have used ride sharing apps in the past;

Exhibit 7: How has your recent experience with Uber (or Lyft) affected your decision to buy or lease a car in the future?
Source: Sharespost Research; N=5,475 survey respondents; 1,741 Uber & Lyft Users; Frequent Users defined as using ride-sharing at least once per week; 26% or 458 users regarded as “Frequent Users”

Our proprietary survey showed 78% of Uber users were “extremely” or “very” satisfied with Uber’s offerings. We’d highlight that our survey captured more than 1,500 current Uber users who indicated that they use Uber most frequently among ride sharing apps. Furthermore, 84% of frequent Uber users were “extremely” or “very” satisfied with Uber. In our opinion, this is a clear indication of Uber’s network effects in play – if you use Uber more, then you are more satisfied! We have observed such network effects at play in leading Internet marketplaces such as Amazon and Netflix.

Exhibit 20: Overall, how satisfied are you with Uber?
Source: SharesPost Research; N=5,475 survey respondents; 1,539 Uber Users; Frequent Users defined as using ride-sharing at least once per week; 26% or 399 Uber users regarded as “Frequent users”

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