Lyft Is Taking Market Share From Uber Amid Crisis
Uber's scandals are giving a boost to its main rival's bottom line.
Uber’s problems are Lyft’s gains.
Following several months of scandals, Uber has lost market share to Lyft, according to several recent surveys on consumer attitudes and spending. The two companies are arguably the two biggest ride-sharing providers.
In the last two years, Uber’s share of the market dipped from 90 percent to 75 percent, according to USA Today. Meanwhile, Lyft has seen its market share edge up during this period and it now accounts for nearly 25 percent of all shared rides.
Uber’s reputation has suffered from a torrent revelations about its operations and workplace, including reports of a secret tool to evade municipal regulation as well as another detailing its discriminatory office culture.
The drop in business shows that how riders are choosing service providers as a result of these issues. According to USA Today, two separate surveys found that consumers’ opinion of Uber as a brand has diminished over the last two years.
Last week, Uber CEO and co-founder Travis Kalanick announced he would be taking an indefinite leave of absence as the scandals continued to mount.
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