The last year has been a public relations nightmare for ride-hailing leader Uber, as the startup has committed a number of different mistakes both legal and otherwise.
The ride-hailing business has faced accusations of sexual harassment in the workplace, profiteering from protests and stealing trade secrets.
Some might not think that customers would care, but the numbers seem to show they do.
Dating back to 2014, Uber owned over 91% of the U.S. market for ride-hailing but that has dropped to a current 74.3% as of the end of August of this year, showed data from research firm Second Measure that tracks dollars in anonymized card purchases.
Data that is supplied by Uber for his market share includes transactions from UberEats, which appear as just a regular Uber ride-hailing purchase, so the market share for the company may be actually lower than it really is.
The biggest benefactor of Uber’s loss of market share has been Lyft its largest rival.
The biggest drop in Uber’s overall market took place the week of January 30, when the campaign to delete Uber was at its highest point.
Customers were very upset with the ride-hailing company as it tried to profit from a protest against the Muslim ban placed by an executive order of President Donald Trump that included a strike by the taxi union of New York City.
That week, the market share for Uber fell by 5% in comparison with the week before, to 76% from 81%, according to data released by Second Measure.
The market share for Lyft during that same period was up by nearly the same figure. Other ride-hailing companies, including Juno and Gett, experienced just nominal increases the same week.
The gains by Lyft may have come simply as a result of its own marketing efforts or better decision making and not because of Uber’s attempt to charge more money during a protest when car availability was scarce.
This week Lyft announced it was now available statewide in 40 U.S. states, which is up from just 8. Uber currently is in 250 U.S. cities. Prices, marketing and how it treats its drivers are other possible reason Lyft has seen an increase in its market share.
Uber has just hired a new CEO in Dara Khosrowshahi and the company is fortunate that that he seems to want the drama of Travis Kalanick the former CEO left behind the company. There will surely be some reaction from consumers to the new CEO’s decisions.