Ridesharing

Uber Still Going Strong With Millennials

Uber Data Helps Lending Access

While Uber has had a rough few months, none of the company’s bad press seems to be deterring its millennial customer base from using the ridesharing service, according to eMarketer.

A March 2017 survey conducted by LendEDU, a provider of student loan debt consolidation and refinancing, finds that despite Uber’s recent difficulties, 93 percent of US millennials have no plans to stop using it, with many analysts believing that brand recognition is one of the main factors for their customer loyalty.

“Millennials who use Uber likely think of it as a quickly famous brand they put on the map, so maybe this makes them inclined to cut it some slack when there are bad news reports — until, that is, they have a bad experience with it themselves,” said eMarketer senior analyst Mark Dolliver.

In addition, there’s also a familiarity with the service that millennials aren’t willing to give up.

“Most of those people aren’t going to give up Uber right away since it works for them,” said Yory Wurmser, senior analyst at eMarketer. “They have the app, and they’re comfortable using it — and it has the scale to provide more coverage in more markets.”

And while Uber has added more tiered options of services than its competitors, some point out if its barrage of bad press continues, people will eventually go to other providers.

“If competitors can match or beat Uber in service, more people will start to switch,” Wurmser said. “So although the immediate drop-off is minimal, the company has to get its act together to stave off a fleet of innovative competitors.”

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NEW PYMNTS DATA: HOW WE SHOP – SEPTEMBER 2020 

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.

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