STUDY FINDS UBER’S GROWTH SLOWS AFTER A YEAR OF SCANDAL

SAN FRANCISCO – Uber Technologies Inc’s growth has slowed as a series of scandals has allowed the ride-hailing company’s chief US competitor, Lyft Inc, to grab more market share, digital research firm eMarketer said in a report on Monday.

eMarkerter research firm has lowered their forecast for Uber’s growth for the next couple years until 2021. They project that 48 million US adults will use Uber at least once this year, this is up 18% from last year, however it is eMarketer’s lower forecast of more than 51 million.

They based their analysts on data from Uber and Lyft, looking at trip numbers, app downloads, including customer survey’s from Jp Morgan and other firms.

The report conducted was quantified to find the effects of the series an internal probes of sexual harassment and workplace behavior, the US Department of Justice investigation into whether Uber managers violated US laws against bribery of foreign officials; a lawsuit by Alphabet Inc alleging trade secrets theft that Uber settled for $245 million; and the removal or departure of Uber Chief Executive officer was aincluded to the many growing problems in Uber.

Uber did not offer any response to these findings.

Shelleen Shum, eMarketer’s forecasting director said, “Uber’s brand image took an even bigger hit than expected as it grappled with a series of scandals and PR disasters in 2017.”

“Lyft, which had been rapidly expanding its coverage, seized on the opportunity to brand itself as a more socially conscious alternative.”

Uber still remains the dominant US ride-hailing company, by the end of 2018 it will have about 77% of the market, down from 90% in 2016, and Lyft will have 48%, up from nearly 29%, according to eMarketer.

Photo Credit- FMT

 

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