- Lyft, the ride-hailing company whose number of trips more than doubled last year to 375.5 million, is more popular among younger adults than rival Uber, according to a survey from researcher SimilarWeb. About 78% of people who downloaded Lyft in the past six months are under age 34, compared 66% of Uber users. Conversely, 22% of Lyft users are 35 or older, compared with about 34% of Uber users, Recode reported.
- The study showed that Lyft has grown its market share to 40% of the ride-hailing market, but it only looked at Uber and not other companies like Juno, Via and Get. That percentage almost matches a claim by Lyft CFO Brian Roberts that the company has 35% of the U.S. market.
- IOS users weren’t included in the survey, which means that U.S. metrics are based on Android users. SimilarWeb didn’t have daily active user data by age group.
The survey could be an indicator of future growth for Lyft as it continues to grow its market share, especially among the coveted younger consumers, at a time when Uber is trying to recover from a series of scandals that culminated in the departure of its CEO last year.
The trend could progress if Lyft continues making moves that appeal to millennials and Gen Z like its donation to the ACLU following President Trump's immigration orders in 2017, as well as its recent announcement to invest millions of dollars to offset its carbon dioxide emissions. These socially conscious moves have proven to reach a company's millennial audience and grow brand loyalty.
However, the latest data requires a critical eye since it didn't take into account numerous factors and were based on Android downloads — not a definitive indicator that Lyft is translating this activity into actual revenue. Other studies also show a slightly different story. Second Measure, a company that analyzes anonymous debit and credit card purchases, shows Lyft had a 26.2% U.S. market share, compared with Uber’s 71%, CNBC reported. Certify, which tracks business expense data, had Lyft at 19% of the enterprise ride-sharing market in Q1 2018 versus Uber's 81%.
The two top ride-hailing companies are locked in a battle for market share as they both pave the way for eventual IPOs. Each have spent heavily on subsidies for drivers and promotional discounts to grow riders, but face their own challenges from decreased sales and marketing spending by Lyft and executive turnover at Uber.