Market Intelligence Insights June 20, 2019
Is Uber Beating the Ride-Hailing Traffic?
- Ride-hailing demand (riders): Lyft is encroaching on Uber’s market share with a 42% YOY increase in the amount of android devices with Lyft installed
- Ride-hailing supply (drivers): We believe that the ride-hailing app with the largest base of drivers will be able to provide riders with the shortest waiting time and be the most successful in winning market share
Uber came to market in May 2019 as one of the biggest IPOs of 2019 to date, raising a whopping $8.1bn. So let’s take a closer look at the company that is famous for being revolutionary in modern day transportation by being the first to launch a ride-hailing service back in 2009.
The biggest part of Uber’s business is its ride-hailing segment which accounted for 78% of gross bookings in Q1 2019.
In 2009 Uber’s revolution to private transportation first became available to the public and it successfully started winning over riders. It was only a matter of time until other, similar services became available and began to start taking market share from Uber. In this context Uber has one main competitor, Lyft.
在线视频 We will take a look at the ride-hailing industry from both the riders’ (demand) and the drivers’ (supply) perspectives to get a holistic picture of the popularity of both apps.
Uber has an early mover advantage which is evidenced in an installed base almost three times the size of Lyft’s. Whilst Lyft’s installations are growing faster – over 40% YOY compared to Uber’s 7% – that’s probably because it’s newer.
It is also useful to understand the growth rate of downloads of both apps to understand the trend amongst users, and we delve into this in our whitepaper on Uber.
In order to truly understand whether Uber or Lyft is the more popular choice in the ride-hailing industry it is perhaps more relevant to understand the alternative data around the way drivers are using these apps.This is because in order to win and maintain market share ride-hailing apps need to provide their riders with a shorter wait time for drivers than their competitors, and the app that has a larger supply of drivers is more likely to successfully do this. Ultimately, the app that manages to consistently provide its riders with as short as possible wait time, at a competitive price, will be successful in winning over and retaining riders.
Source: Uber IPO Prospectus
Given that drivers have the apps open when driving riders, we believe the best metric to determine which app is more popular for drivers is “Time per User”. We explore this metric to determine which app has a larger and more readily available base of drivers in our whitepaper.
So how is Uber actually doing in the ride-hailing industry? Read our whitepaper to find out.
Uber is installed on almost three times more android devices than Lyft, but which app is doing a better job at attracting drivers? Read our whitepaper to find out more.