Ride-hailing apps make headway

Eighty-nine per cent of people in the US use taxi hailing apps, with Uber being the most popular despite its scandals around the world, according to a new survey.

The ReportLinker survey reached 582 online respondents representative of the US population in interviews conducted on September 6.

The survey sought to measure people’s awareness and usage of ride-hailing apps.

The most popular brand in the US was Uber, cited 97 per cent of the time, followed by Lyft with 75 per cent of mentions and Zip Car at 45 per cent.

Millennials use ride-hailing services more frequently than other generations, with 15 per cent saying they use them two to five times a week compared to 69 per cent of other generations who said they summon cars once a month or less.

Sixty-two per cent of people mainly use ride-hailing on a night out, including 70 per cent of millenials.

Disrupted business

When asked about the reasons why they use such services, 60 per cent of US respondents mentioned the ease of use, 42 per cent said the short waiting time, 26 per cent said the efficiency of the experience and 16 per cent said the reduced cost.

Despite its popularity, Uber has run into headwinds in many parts of the world — more so from conventional taxis whose businesses have been severely disrupted by the app.

In Kenya, there is added protest from drivers contracted by Uber who say the firm has been paying them low commissions that cannot sustain them.

The drivers held up traffic in Nairobi last week during protests against arbitrary fare changes by Uber.

While it has been a tough year for Uber, also struggling with management and leadership issues, the company has been successful at generating awareness and building a strong brand name.

 Ride-hailing services have significantly disrupted the personal transportation industry. Traditional players like Toyota and automotive startups such as Tesla have plans to enter the market.