Friday, July 17, 2015

Sorry, taxis.
Business travelers just aren’t that into you anymore.
A new study by Certify — which makes software that companies use to
compile expense reports for their business travelers — finds that for
the first time ever, more business travelers used Uber instead of taxis.


"I think it clearly indicates a wholesale shift in the business
traveler’s perspective about ground transportation," Certify CEO Bob
Neveu says of the second quarter report, which Certify compiled using millions
of receipts and expense reports business travelers filed using the
company’s app.
"This is the first time in aggregate where we have more Uber expenses going
through our system than we have general taxi expenses.
"Related 11 Things You Need to Know About Airbnb Before You BookIn
Certify’s head-to-head analysis of taxis vs.
ridesharing services, Uber accounted for 55 percent of the ground
transportation costs business travelers expensed last quarter.
Taxis were well behind at 43 percent.
Uber’s competitor, Lyft, was left in the dust at a tiny 1 percent,
tied with other ridesharing services.
Uber is doing some serious cab crushing among business travelers.
(Infographic: Certify)

Neveu notes that Uber’s bread and butter
appears to be large groups of coworkers who hit the road together.
"If you have a group of 10 traveling, people are saying, ‘Instead of
having to get shuttle vans, let’s just get two Uber SUVs.
"

Price may be another reason business travelers appear to be kicking taxis
to the curb.
Certify says the average cost-per-ride for taxis last quarter was $34.
48.
For Uber, however, it was $30.
03.
Lyft was even lower at $22.
51.


Rental car companies in the crosshairs, tooAnd now that Uber has
dispatched with taxis, rental cars may be next.
According to Certify’s study, rental cars still accounted for the
largest share, 45 percent, of business ground transportation expenses.
But that’s down from 55 percent during the same quarter last
year.
But in that same period, Uber expenses exploded from 8 percent to 31
percent.
 "Nowadays business travelers have to really ask the question, ‘Do
I really need a rental car, or should I just take an Uber?’" says
Neveu.
"If you’re going to rent a car, it might cost you $100, $150.
You have to deal with the drop-off, the pickup, the return.
But if you only need to take one or two trips [during your business trip],
you might be able to get by with an Uber and have it cost less.
"

Neveu says his data shows it’s only a matter of time before rental
cars, like taxis, are left in the rearview mirror behind Uber, as far as
business travelers are concerned.


Related: How to Save Big Money on Business Travel"This is now six quarters
of consistent growth in Uber’s share of ground transportation," he
says.
"I don’t see anything that would indicate that that will stop or slow
down at this stage.
"
Is there a "silver lyning" for Lyft?
Despite its paltry 1
percent market share in Certify’s report, there’s a bright
side for Uber’s bitter rival, Lyft.
Kind of…

Certify found that as far as business traveler
satisfaction goes, Lyft scored higher than Uber, rental cars, and taxis.
Plus, Lyft saw a 153 percent increase in preference from the previous
quarter.


Still they probably should hold off on the champagne bottles at
Lyft’s HQ.
"They may double in growth from 1 percent to 2 percent," Neveu says
dismissively.
But pointing to Uber’s 55 percent, and growing, market share, Neveu
says Lyft is going to have to up its game if it’s going to appeal to
business travelers.


"Lyft’s business service has not really resonated with the business
community in terms of thinking about it as a viable option or a competitor to
a taxi or rental car," he says.
 

Airbnb Boom

The sharing economy isn’t just affecting
transportation; it’s also affecting where business travelers stay.
Certify’s new report finds that after Airbnb launched its business
service a year ago, the home-sharing service grew 143 percent from last
quarter among business travelers.
 Neveu believes the growth is fueled by coworkers who travel together on
business.
"Say you have a group from a company that’s going to a trade show," he
says.
"They’re bringing multiple people from the company, and they need to
get blocks of hotel rooms — three, four, or five of them.
Sometimes it’s easier just to go on Airbnb and get a large house.
" Business travelers pay more and stay longer when they use Airbnb.
(Infographic: Certify)
Airbnb’s business clients tend to travel in
groups and stay for multiple nights, and that may explain why the average
Airbnb stay expensed via Certify is $571.
53 over 3.
8 nights — more than double the $222.
55 over 2.
1 nights spent on hotels, which, Neveu explains, are still preferred by
businesspeople traveling alone for a short stay.
"That’s the key driver [behind Airbnb’s growth among business
travelers]," Neveu says.
"Larger parties renting bigger properties for multiple nights.
"
An amusing part of Certify’s report shows the city where
businesspeople use ridesharing services and Airbnb the most is San Francisco
— where Uber, Lyft, and Airbnb happened to be headquartered.
Still, Neveu believes we’re looking at a national phenomenon.
 "The sharing economy works across all industries and all people," he
says.
And traditional travel-related companies are starting to notice which way the
winds are blowing; hotel chain Starwood recently partnered with Uber to give
passengers Starwood rewards points for using the ridesharing service.
One may ask why Starwood would aid and abet the biggest name in the very same
sharing industry that’s threatening its fellow traditional
travel-related companies.
But as the sharing economy continues to make a killing in the $300 billion
business travel industry, it’s every man for himself  — a
concept business travelers certainly can appreciate.
 WATCH: Flying Singapore Airlines in First Class For an Hour Ruined My
Life Let World traveling club Travel inspire you every day.
Hang out with us onFacebook,Twitter, Instagram, and Pinterest.
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Abroad.
" A new study by Certify — which makes software that companies use to
compile expense reports for their business travelers — finds that for the
first time ever, more business travelers used Uber instead of taxis.
.
Neveu believes the growth is fueled by coworkers who travel together on
business.
"Say you have a group from a company that’s going to a trade show," he
says.
"They’re bringing multiple people from the company, and they need to
get blocks of hotel rooms — three, four, or five of them.
Sometimes it’s easier just to go on Airbnb and get a large house.
" Business travelers pay more and stay longer when they use Airbnb.
(Infographic: Certify)
Airbnb’s business clients tend to travel in
groups and stay for multiple nights, and that may explain why the average
Airbnb stay expensed via Certify is $571.
53 over 3.
8 nights — more than double the $222.
55 over 2.
1 nights spent on hotels, which, Neveu explains, are still preferred by
businesspeople traveling alone for a short stay.
"That’s the key driver [behind Airbnb’s growth among business
travelers]," Neveu says.
"Larger parties renting bigger properties for multiple nights.
"
An amusing part of Certify’s report shows the city where
businesspeople use ridesharing services and Airbnb the most is San Francisco
— where Uber, Lyft, and Airbnb happened to be headquartered.
Still, Neveu believes we’re looking at a national phenomenon.
 "The sharing economy works across all industries and all people," he
says.
And traditional travel-related companies are starting to notice which way the
winds are blowing; hotel chain Starwood recently partnered with Uber to give
passengers Starwood rewards points for using the ridesharing service.
One may ask why Starwood would aid and abet the biggest name in the very same
sharing industry that’s threatening its fellow traditional
travel-related companies.
But as the sharing economy continues to make a killing in the $300 billion
business travel industry, it’s every man for himself  — a
concept business travelers certainly can appreciate.
 WATCH: Flying Singapore Airlines in First Class For an Hour Ruined My
Life Let World traveling club Travel inspire you every day.
Hang out with us onFacebook,Twitter, Instagram, and Pinterest.
 Watch World traveling club Travel’s original series "A Broad
Abroad.
"A new study by Certify — which makes software that companies use to compile
expense reports for their business travelers — finds that for the first time
ever, more business travelers used Uber instead of taxis.

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