Uber woes lift Lyft a lot
Uber’s setbacks have impacted its business and rival Lyft is now getting serious traction. “Uber’s brand image took an even bigger hit than expected as it grappled with a series of scandals and PR disasters in 2017," says Shelleen Shum, forecasting director at eMarketer. "To make things worse for Uber, Lyft – which had been rapidly expanding its coverage – seized on the opportunity to brand itself as a more socially-conscious alternative.”
eMarketer did expect Uber to be negatively affected by the #DeleteUber movement in early 2017, but the fallout from that and other scandals about its internal culture was bigger than anticipated.
The research firm forecasts that while 48m US consumers will use Uber at least once this year – 18% up on 2017 – that’s lower than previous projections. Now eMarketer has lowered its usage and market share estimates for Uber through to 2022.
Lyft is currently growing at a faster rate and narrowing the gap with Uber. In 2018, close to 30m US consumers will use Lyft at least once, an increase of 41% on last year.
“Lyft is now in over 300 US cities, about the number same as Uber. It has been able to take share away from its larger, scandal-plagued rival over the past year," says Shum. "It has also benefitted from being second-to-market in most cities, with Uber having already created awareness and addressed regulatory issues.”