Less than one in ten dollars spent on ground transportation by US business travellers now goes to taxis, while spending on ride-sharing transport options like Lyft and Uber continues to rise, according to a report from expense-management software company Certify.
The latest Certify Spend Smart Report finds that 55 per cent of ground transport spending went to Uber in the second quarter of 2017, up 2 per cent, and that Lyft also gained 2 per cent of spending, to 9 per cent overall.
That means both companies are now outperforming traditional taxis among business travellers: spending on cabs fell to 8 per cent, according to Certify, the first time that figure has been below 10 per cent.
Spending on car rentals also declined, falling 2 per cent to 29 per cent of total ground transport expenditures.
“The revolution in ground transportation we’re seeing today led by Uber and Lyft has far reaching implications for the future of corporate travel,” said Robert Neveu, CEO of Certify.
“Business travellers’ move toward greater personalisation and convenience may have started with ride-hailing, but it’s not likely to stop there. Mobile technology brought us into a new age, and the expectation and ability to cater to the preferences of the individual is driving a cultural shift that will continue to effect dynamic change throughout the industry.”
The report, which tracks transport, food, and lodging expenditures logged in the Certify system, also found that spending on Airbnbs rose 31 per cent, but still remains less than one per cent of all spending on business travel lodging.
Other findings included:
- Starbucks was the most-expensed restaurant, followed by McDonalds, Panera Bread, Subway, and Chick-fil-A
- Delta was the most commonly flown airline, followed by American, United, Southwest, and Jet Blue
- Business travellers were most likely to stay in a Hampton Inn, followed by Marriott, Courtyard by Marriott, Hilton Garden Inn and Holiday Inn Express
- The most popular car rental agencies were National, Enterprise, Hertz, Avis, and Budget