When U.S. cities and states faced shelter-in-place orders to limit the spread of the coronavirus, Americans’ reduced mobility resulted in plummeting sales at rideshare companies. With the exception of a late 2020 dip, sales have been gradually recovering since April 2020. Uber sales were up 310 percent year-over-year and Lyft sales were up 266 percent year-over-year in May 2021.
In August, rideshare operators entered a standoff with regulators in California over how employees are classified and compensated. Both Uber and Lyft were on the brink of suspending operations before reaching an agreement with the state to continue service. In November, Uber and Lyft won a major victory when California voters approved Proposition 22, which will allow gig economy companies to continue classifying their drivers as independent contractors rather than as employees.
The breakdown of May 2021 sales between Uber and Lyft reveals that market share has remained stable, relative to prior months. Uber still dominates, taking in 68 percent of U.S. rideshare spending. Starting in August 2017, Uber’s share of the market excludes most Uber Eats transactions, though some remain indistinguishable, especially from May to mid-August 2019. Both Uber and Lyft are also reportedly making inroads with corporate rideshare clients, although Bloomberg Second Measure’s analysis excludes business spending.
Rideshare trends vary by coast
Though Uber commands the U.S. market, a geographic analysis of rideshare sales reveals that riders are more likely to hail a Lyft on the West Coast or Midwest than in the Northeast. In several major cities, Lyft’s market share is higher than the national average. In May, 42 percent of rideshare sales went to Lyft in San Francisco, its highest share among the top 15 most populous U.S. metro areas.
Few customers use both Uber and Lyft
Nationwide, most customers are loyal to just one rideshare service. Only 13 percent of U.S. rideshare customers used both Uber and Lyft in April. Sixty-two percent used only Uber, while 25 percent used only Lyft.
Uber also wins out on rider engagement. Riders who use both Uber and Lyft typically spend more on rideshare each year than riders who are loyal to a single service. And, on average, these riders who hail cars on both services spend more with Uber than Lyft. Over the past year, the average rider of both Uber and Lyft spent $278 with Uber, and $183 at Lyft.
Average transaction values on the rise for both Uber and Lyft
As the rideshare industry continues to rebound from the pandemic, consumers might start paying more for their rides. Transaction data already shows an increase in average transaction values year-over-year. In May 2021, Lyft’s average transaction value was $26, a 54 percent jump year-over-year. Likewise, the average transaction value for an Uber ride in May was $20, a 25 percent increase from one year ago.
Uber also among top U.S. meal delivery companies
Uber has established itself as more than a rideshare company. Its successful foray into food delivery has surprised its own CEO. As meal delivery companies are thriving in the COVID-19 era, Uber purchased Postmates in early July and alcohol delivery service Drizly in early February. Uber Eats has also expanded its offerings by forming a prescription delivery partnership with Nimble.
Uber and Lyft among brands vying for scooter and bike sales
Uber and Lyft have also segued into scooters and bikeshare. Lyft launched a scooter fleet in September 2018, but in 2019, it announced it was pulling scooters out of six U.S. cities due to a lack of riders. In May 2020, Lime received funding from Uber and also acquired Jump Bikes, which Uber bought in 2018. Micro-mobility has also shown declining sales in light of the pandemic, collectively falling 58 percent year-over-year in 2020.
In December 2019, Lime announced it would be leaving four U.S. markets and eight international ones. Even before COVID-19, Lime and its competitors were experiencing the annual winter slump after most saw sales grow over the summer. In 2019, Lime’s sales dropped 66 percent from July to December, while Bird’s sales fell 80 percent over the same period.
The legal landscape for scooters is perpetually shifting, as federal agencies and cities across the country grapple with regulating this new form of urban transport. In January 2020, it was reported that the U.S. Consumer Product Safety Commission conducted probes into scooter safety while the previous fall, Los Angeles suspended Uber’s scooter permit over a data-sharing dispute. Other cities are concluding pilot programs, seeking public feedback, and implementing strict regulations that have prompted some companies to leave the market.
Remembering rough roads traversed
Though Uber has always worn the U.S. rideshare crown, one of the most pivotal years in its history was 2017. That January, the #DeleteUber hashtag went viral, and Uber’s market share dropped 5 percentage points in a single week, the start of what would turn out to be a challenging year.
Former CEO Travis Kalanick resigned in June 2017 following other publicized issues, including questions surrounding the company’s culture. A new CEO and 2018 brand overhaul have since helped Uber elevate its image and calm market-share fluctuations.
*Note: Bloomberg Second Measure regularly refreshes its panel and methods in order to provide the highest quality data that is broadly representative of U.S. consumers. As a result, we may restate historical data, including our blog content. We recommend using only the latest post in assessing regional market share.