Blog Article | Rohit Kulkarni
Posted: February 21, 2018

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 AND DISCLOSURES

This blog post is being published by SharesPost Financial Corporation, member FINRA/SIPC. 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. SP Investments Management, LLC is the investment manager of the SharesPost 100 Fund, a Registered Investment Company, and other funds. These entities and funds (hereafter “SharesPost”) does, seeks to do business with and owns the companies covered in this research report. Consequently, investors should be aware that SharesPost has a conflict of interest that could affect the objectivity of this report.

None of the information contained in this blog post 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 does it 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.

Information regarding companies in the SharesPost 100 List available on the website has been collected from or generated from publicly available sources. The availability of company information does not indicate that such company has endorsed, supports or otherwise participates with SharesPost. Company “thesis” are the opinions of SharesPost and are not recommendations to buy, sell or hold any security of such company.

Rohit Kulkarni
Article Author

Rohit Kulkarni

Rohit is the Managing Director, Private Investment Research for SharesPost Research LLC. Prior to joining SharesPost, Rohit was a Vice President, Senior Analyst at RBC Capital Markets.

Register below or login to view the complete report.

PLEASE READ THESE IMPORTANT LEGAL NOTICES AND DISCLOSURES

This blog post is being published by SharesPost Financial Corporation, member FINRA/SIPC. 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. SP Investments Management, LLC is the investment manager of the SharesPost 100 Fund, a Registered Investment Company, and other funds. These entities and funds (hereafter “SharesPost”) does, seeks to do business with and owns the companies covered in this research report. Consequently, investors should be aware that SharesPost has a conflict of interest that could affect the objectivity of this report.

None of the information contained in this blog post 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 does it 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.

Information regarding companies in the SharesPost 100 List available on the website has been collected from or generated from publicly available sources. The availability of company information does not indicate that such company has endorsed, supports or otherwise participates with SharesPost. Company “thesis” are the opinions of SharesPost and are not recommendations to buy, sell or hold any security of such company.

Important Notice

You are now leaving the SharesPost 100 Fund area of the SharesPost website and proceeding to either a) SharesPost Inc. and its affiliates including SharesPost Financial Corporation, a separate company registered as a broker/dealer with the Securities and Exchange Commission and member of FINRA/SIPC, and SharesPost Investments Management, LLC, a registered investment advisor, or b) to another third party, including UMB Fund Services, Inc. and Foreside Fund Services, LLC, both SharesPost 100 Fund service providers.

go back continue