February 21, 2018 | Blog

Ridesharing Grows Strongly In 2017; The Battle Between Uber and Lyft Rages On

Highlights from Our 2nd Annual Ridesharing Consumer Survey

Consumers have clearly developed a healthy appetite for ridesharing services - and the demand for on-demand ride service doesn’t appear to be waning anytime soon. In fact, more consumers are using ridesharing services than ever before. Moreover, they are using them more frequently and spending more money on them, according to SharesPost’s Second Annual Ridesharing Consumer survey.

In our 2017 year-end survey, we were able to track year-over-year (YOY) trends in the ridesharing sector, including trends in market share, overall ridesharing consumer preferences, usage, and consumer satisfaction rates. We received 6,880 responses from U.S.-based consumers, up from 5,475 responses in our 2016 survey.

The 2017 results speak volumes about ridesharing and have positive implications for the two largest ride-sharing firms in the U.S. - Uber and Lyft. Among the highlights:

U.S. ridesharing adoption jumped from 38% in 2016 to 53% in 2017. 53% of our respondents have used one or more ridesharing apps in the past 12 months. This percentage is up 15-points from our 2016 survey. It also implies 2.5 times the usage reported in a 2015 Pew Survey measuring the proportion of adult population using ridesharing. We observed enhanced market penetration by Millennials, city dwellers, and individuals who did not own cars.

Ridesharing usage has increased by 15% since 2016.
Exhibit 1: Ridesharing Market Penetration
Ridesharing usage has increased by 15% since 2016.

Lyft’s U.S. market share has substantially increased since 2016. In our 2017 survey, 18% of ridesharing app users reported using Lyft most frequently. In our 2016 survey, 10% indicated Lyft as their first ridesharing choice. By contrast, the proportion of survey respondents who most often use Uber dropped meaningfully, from 76% in 2016 to 65% in 2017.

Consumers are spending more per ride and using ridesharing services more frequently. These ridesharing trends are positive for both Uber and Lyft. Specifically, Uber and Lyft users now use ridesharing services for an average of 40 trips per year. And they spend, on average, approximately $15 per trip.

Ridesharing services are replacing traditional public transportation services. Consumers are increasingly choosing ridesharing services over traditional means of transportation-in particular, public transportation. While our survey showed that the number of consumers using ridesharing apps has increased by 15% YOY, respondents indicated they are using public transportation and traditional taxi services less often.

Ridesharing services are an increasingly viable alternative to car ownership. We observed marginally higher rates of ridesharing app use among those who do not own cars than those who own or lease. Among non-owners who have heard of ridesharing apps, 58% have used ridesharing services. This is another positive sign for ridesharing services, and could soon begin to impact car ownership decisions.

In a head-to-head comparison, Uber has a slight edge in consumer perception vs. Lyft. The ongoing battle between Uber and Lyft is one of the defining features of the U.S. ridesharing space. While Uber is the reigning market leader, the company’s recent managerial and legal troubles have enabled Lyft to significantly gain ground. Currently, 24% of surveyed consumers consider Lyft and Uber to be essentially equivalent. 24% consider Uber to the superior service, and 16% consider Lyft to be superior.

Consumers are less bullish about the future of self-driving cars. The advent of autonomous vehicle technology is a significant opportunity for ridesharing companies. Uber, Lyft, and other players have all invested significant capital in self-driving technology. 22% of surveyed consumers believe that self-driving cars will become safe and reliable by 2022. However, this proportion has declined from the 30% of survey respondents who felt the same way in our 2016 survey.


view the complete survey report

PLEASE READ THESE IMPORTANT LEGAL NOTICES & DISCLOSURES

CONFLICTS

This report is being published by SharesPost Research LLC, and distributed by SharesPost Financial Corporation, a member of FINRA/SIPC. SharesPost Research LLC, SharesPost Financial Corporation and SP Investments Management, LLC, an investment adviser registered with the Securities and Exchange Commission, are wholly owned subsidiaries of SharesPost, Inc.

Recipients who are not market professionals or clients of SharesPost Financial Corporation should seek the advice of their own personal financial advisors before making any investment decisions based on this report. None of the information contained in this report represents an offer to buy or sell, or a solicitation of an offer to buy or sell, any security, and no buy or sell recommendation should be implied, nor shall there be any sale of these securities in any state or governmental jurisdiction in which said offer, solicitation, or sale would be unlawful under the securities laws of any such jurisdiction.

This report does not constitute an offer to provide investment advice or service. Registered representatives of SharesPost Financial Corporation do not (1) advise any member on the merits or advisability of a particular investment or transaction, or (2) assist in the determination of fair value of any security or investment, or (3) provide legal, tax, or transactional advisory services.

ANALYST CERTIFICATION

The analyst(s) certifies that the views expressed in this report accurately reflect the personal views of such analyst(s) about any and all of the subject securities or issuers, and that no part of such analyst compensation was, is, or will be, directly or indirectly related to the specific views contained in this report.

Analyst compensation is based upon various factors, including the overall performance of SharesPost, Inc. and its subsidiaries, and the performance and productivity of such analyst, including feedback from clients of SharesPost Financial Corporation and other stakeholders in our ecosystem, the quality of such analyst’s research and the analyst’s contribution to the growth and development of our overall research effort. Analyst compensation is derived from all revenue sources of SharesPost, Inc., including brokerage sales.

DISCLAIMER

This report does not contain a complete analysis of every material fact regarding any issuer, industry, or security. The opinions expressed in this report reflect our judgment at this date and are subject to change. The information contained in this report has been obtained from sources we consider to be reliable; however, we cannot guarantee the accuracy of all such information.

Any securities offered are offered by SharesPost Financial Corporation, member FINRA/SIPC. SharesPost Financial Corporation and SP Investments Management are wholly owned subsidiaries of SharesPost, Inc. Certain affiliates of these entities may act as principals in such transactions.

Investing in private company securities is not suitable for all investors. An investment in private company securities is highly speculative and involves a high degree of risk. It should only be considered as a long-term investment. You must be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid and there is no guarantee that a market will develop for such securities. Each investment also carries its own specific risks and you should complete your own independent due diligence regarding the investment, including obtaining additional information about the company, opinions, financial projections and legal or other investment advice.

Accordingly, investing in private company securities is appropriate only for those investors who can tolerate a high degree of risk and do not require a liquid investment.

SharesPost, the SharesPost logo, My SharesPost, the SharesPost Index, and SharesPost Investment Management are all registered trademarks of SharesPost, Inc. All other trademarks are the property of their respective owners.

Copyright SharesPost, Inc. 2019. All rights reserved.

Alejandro Ortiz

Alejandro Ortiz

Alejandro is a Research Analyst, Private Investment Research for SharesPost Research LLC. Prior to joining SharesPost, he was a Valuation Analyst at Duff & Phelps with a focus on TMT industries.
PLEASE READ THESE IMPORTANT LEGAL NOTICES & DISCLOSURES

CONFLICTS

This report is being published by SharesPost Research LLC, and distributed by SharesPost Financial Corporation, a member of FINRA/SIPC. SharesPost Research LLC, SharesPost Financial Corporation and SP Investments Management, LLC, an investment adviser registered with the Securities and Exchange Commission, are wholly owned subsidiaries of SharesPost, Inc.

Recipients who are not market professionals or clients of SharesPost Financial Corporation should seek the advice of their own personal financial advisors before making any investment decisions based on this report. None of the information contained in this report represents an offer to buy or sell, or a solicitation of an offer to buy or sell, any security, and no buy or sell recommendation should be implied, nor shall there be any sale of these securities in any state or governmental jurisdiction in which said offer, solicitation, or sale would be unlawful under the securities laws of any such jurisdiction.

This report does not constitute an offer to provide investment advice or service. Registered representatives of SharesPost Financial Corporation do not (1) advise any member on the merits or advisability of a particular investment or transaction, or (2) assist in the determination of fair value of any security or investment, or (3) provide legal, tax, or transactional advisory services.

ANALYST CERTIFICATION

The analyst(s) certifies that the views expressed in this report accurately reflect the personal views of such analyst(s) about any and all of the subject securities or issuers, and that no part of such analyst compensation was, is, or will be, directly or indirectly related to the specific views contained in this report.

Analyst compensation is based upon various factors, including the overall performance of SharesPost, Inc. and its subsidiaries, and the performance and productivity of such analyst, including feedback from clients of SharesPost Financial Corporation and other stakeholders in our ecosystem, the quality of such analyst’s research and the analyst’s contribution to the growth and development of our overall research effort. Analyst compensation is derived from all revenue sources of SharesPost, Inc., including brokerage sales.

DISCLAIMER

This report does not contain a complete analysis of every material fact regarding any issuer, industry, or security. The opinions expressed in this report reflect our judgment at this date and are subject to change. The information contained in this report has been obtained from sources we consider to be reliable; however, we cannot guarantee the accuracy of all such information.

Any securities offered are offered by SharesPost Financial Corporation, member FINRA/SIPC. SharesPost Financial Corporation and SP Investments Management are wholly owned subsidiaries of SharesPost, Inc. Certain affiliates of these entities may act as principals in such transactions.

Investing in private company securities is not suitable for all investors. An investment in private company securities is highly speculative and involves a high degree of risk. It should only be considered as a long-term investment. You must be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid and there is no guarantee that a market will develop for such securities. Each investment also carries its own specific risks and you should complete your own independent due diligence regarding the investment, including obtaining additional information about the company, opinions, financial projections and legal or other investment advice.

Accordingly, investing in private company securities is appropriate only for those investors who can tolerate a high degree of risk and do not require a liquid investment.

SharesPost, the SharesPost logo, My SharesPost, the SharesPost Index, and SharesPost Investment Management are all registered trademarks of SharesPost, Inc. All other trademarks are the property of their respective owners.

Copyright SharesPost, Inc. 2019. All rights reserved.