A new report by expense management software provider Certify shows that ride-hailing apps such as Uber and Lyft accounted for 68 per cent of overall ground transportation spend in the US in 2017.
According to Certify’s Spendsmart report, Uber took 56 per cent of its clients’ ground transportation expenses, while Lyft accounted for 12 per cent. Furthermore, Uber claimed 9 per cent of all expenses and receipts processed by the firm in 2017 – a 3 per cent increase over 2016 and 6 per cent more than the next most expensed supplier, Starbucks.
Uber expenses climbed 4 per cent from 2016, while competitor Lyft added 8 per cent year on year. Elsewhere in the ground transport category, taxi use fell to 7 per cent (down from 11 per cent in 2016) and car rental lost 8 percentage points to 25 per cent of category spend.
The data also shows that alternative and sharing economy providers are gaining ground, with the number of Airbnb expenses nearly doubling each year since 2014. However, the room-sharing firm still only accounts for .5 per cent of the overall lodging category.
The Certify Spendsmart report tracks business travel expense spending across major categories such as food, airlines, lodging and car rental. It also provides analysis of expense category spending benchmarks for 2017, which shows average costs have increased compared to 2016 in most categories.
Robert Neveu, CEO of Certify, commented: “A healthy business travel market is a key driver of a strong economy, and year over year we are seeing a sharp increase in our business travel data. Today, relatively new industries like ride hailing, room sharing and meals management are maturing quickly as approved corporate suppliers at all levels of business. Coupled with leading-class technology for ease and convenience, demand for traditional travel services also continues to grow. We see a number of legacy travel providers securing their market position by investing in, and adopting and partnering with best-in-class technology. Certify is pleased to share this travel and expense data with the industry and our customers to establish a true baseline cost comparison for business travel.”
View the full Spendsmart report here.