B2B Payments

In T&E, Grubhub May Overtake Starbucks Like Uber Overtook Taxis

Traveling employees are increasingly picking Lyft over Uber, according to new data from corporate travel and expense management solutions provider Certify.

The company announced the release of its latest SpendSmart report for the second quarter. The analysis compiles data of expense files on the Certify platform and explores patterns in how employees are spending company money.

According to the SpendSmart report, Lyft saw an 8 percent increase in market share in the quarter, while Uber's market share dropped 3 percent. Taxi use continued to decline, with the segment's market share declining by 5 percent in Q2, Certify found.

While the jump for Lyft represents a trend in the company's efforts to strengthen its position in corporate travel, Certify found that Uber still dominates over its ride-hailing rival; 74 percent of ground transportation expenses went to Uber in the quarter, compared to 19 percent that went to Lyft. It's an impressive climb for Uber, which secured just 26 percent of all ground transportation expenses in 2014, when Certify began compiling the data. Lyft represented just 1 percent of that volume in 2014, while taxis had made up 74 percent.

Additionally, employees tend to spend more when they use Uber compared to Lyft; the average transaction value on the Uber platform was $26 in Q2, while for Lyft it was $22.37. Average tips for Uber were also higher than Lyft, according to Certify.

Analysts also examined other apps rising in popularity with corporate travelers.

SpotHero saw a 216 percent increase year-over-year in Q2, Certify found, while Grubhub services secured more than a third of all food delivery service transactions on the platform for the quarter, move than DoorDash or Postmates. Uber was the most expensed business travel service, followed by Amazon, Delta and Starbucks, which were all tied for second place.

"What the data tells us is that business travelers are embracing digital services like never before, because convenience on the road is foremost," said Certify CEO Robert Neveu in a statement. "Two of the top five most expensed services by business travelers in Q2 2018 were digital – Amazon and Uber – and apps for food delivery, parking and lodging are quickly establishing themselves as worthy competitors in their markets.

"To wit, it's not such a stretch to imagine services like Grubhub, DoorDash, Uber Eats and Postmates coming to dominate traditional eating options like Starbucks, McDonald's and Panera Bread over the next five years, just as Uber and Lyft have taken down taxis."



The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.