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;
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;
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.
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