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Uber Taking over from Taxis in Key Metro Markets

Uber’s popularity overtook traditional taxi service for San Francisco and Dallas business reimbursements in the first three months of 2015, reflecting an overall nationwide trend toward the innovative transportation company, according to analysis of millions of receipts processed through expense management software provider Certify.

Preference for Uber may be driven by lower cost, reports Certify. Q1 results countrywide revealed individual business travelers’ receipts averaging $31.24 per Uber ride versus $34.50 for taxis. A release regarding the report did not detail length of each ride expensed, but rather focused on total paid rides. Still, cost effectiveness does appear to be driving customers toward Uber.

Comparing Uber rides in Q1 of 2015 to Q1 2014, there has been a dramatic increase in total paid rides for individual travelers, up to 46% from 15% just one year earlier, according to the report. Taxicab use, expanded for limousine and shuttle use,shows a drop for the same period from 85% to 53%.

“More companies are choosing Uber for Business every day to offer their employees a safe, affordable and reliable option in over 300 cities globally,” Uber for Business manager Max Crowley told Certify. “Across business travel we have seen the strongest growth on uberX, our lowest cost option. Employees recognize the value of riding with Uber and are saving their companies money in the process.”

Breitbart reported last year on the regulations and union agreements that have driven up taxi prices, and the efforts of some state politicians to apply those same regulations on to ride-sharing outfits such as Uber, Lyft and Sidecar.

For now, these options have made an innovative free market option available to consumers who are free to choose what transportation service to patronize–and who are increasingly choosing the less regulated option.

Follow Michelle Moons on Twitter @MichelleDiana

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