Certify, one of North America’s largest providers of travel and expense management software, says ride-sharing is taking a big bite out of the rental car industry.
The company’s SpendSmart report for the first quarter of 2016, analyzed more than 9 million receipts from business travelers and showed that Uber trips alone exceeded all rental cars outlays.
Uber made up an impressive 43% of ground transportation transactions for the period. Ride-sharing receipts tracked in Q1 made up 46% of all ground travel while rental cars totaled just 40%.
Certify also found that Lyft grew by 44% in Q1 2016 for a nearly 2.5% marketshare for all ground transportation transactions.
Certify says the trend is accelerating with rental car transactions falling by 15% in the past two years. In comparison, ride-sharing receipts increased by 4% in just the last quarter of 2015.
With the ability to skip the rental car line and save money, along with the convenience of summoning a ride from your mobile device, many travelers are simply finding it more convenient to summon an Uber or Lyft driver.
“Uber’s continued success and Lyft’s recent growth with the business travel market is really being driven by three factors: cost, convenience and customer satisfaction,” Robert Neveu, CEO, Certify, said in a statement.
“These ride-hailing services have perfected a model that allows employees to choose the kind of experience they want when traveling for business while also saving the company a great deal of money in the process,” he added.
The financial repercussions can be easily seen in the suffering financial statements for Avis, Budget, and Hertz, all of which are down significantly for the first three months of 2016.
Car rentals companies have attempted to launch their own vehicle sharing programs in recent years, the most successful of which is Zipcar. However, those programs still require drivers to drive on their own and pick up vehicles at certain locations — thus eliminating some of the convenience offered by Uber, Lyft, and others.