Uber Competitor Analysis | What are the Best Uber Alternatives
It’s hard to imagine a world without Uber.
In the last decade, the company has transformed transportation, both in terms of safety and convenience.
And while it may seem like there is no end in sight for Uber’s dominance, a number of key competitors have emerged to challenge the company’s current leadership in this space.
This post will explore a sampling of these competitors and discuss how they stack up against Uber regarding customer experience, quality control, and pricing structure.
Uber is the world’s largest ride-sharing company. They have more than 1 million drivers worldwide and operate in over 630 cities.
The company was founded in 2009 by Travis Kalanick and Garrett Camp, who had previously started a software company together called Red Swoosh.
In 2014, Uber raised $1 billion from Google Ventures and other investors for a total valuation of $40 billion.
Ridesharing has proven to be an extremely competitive market.
Several startups have launched in the past few years in hopes of capturing a piece of this expanding market, and while Lyft and Uber are neck and neck, it appears that Lyft has already won the battle for ridership.
Lyft is one of their main competitors – they are also an on-demand transportation service that lets you request rides with your phone or email address.
In 2014, Lyft was valued at around $700 million after raising about $250 million from Andreessen Horowitz and Founders Fund.
Uber has been a leader in this industry for quite some time now. They offer various services, from luxury cars to cheaper rides with drivers that may not have as much experience behind the wheel.
Their target market is anyone looking for a quick ride around town without having to worry about driving themselves or finding parking at their destination.
Lyft, on the other hand, is more focused on providing an affordable alternative to those who are just looking for transportation but don’t need any extras like car seats or snacks for
Uber Competitor Analysis
Who are Uber’s main competitors?
Founded: 2012 Best known for: $2.5 billion investment from Google Ventures and Andreessen Horowitz
Like Uber, Lyft is a ride-sharing company that uses an app to connect drivers with passengers.
In 2013, the company was named the “Fastest Growing Technology Startup in the US” by Deloitte Fast 500.
Lyft very closely mimics Uber’s customer experiences from the moment users download their app until their car arrives at their destination point.
The Lyft app is similar in look, feel, and functionality to Uber. Like Uber, users can select the type of ride they would like (Uber Car or Lyft LUX) and fill out their information to receive calls when drivers are available to offer service.
Both companies ask users to submit their phone numbers to help quickly match them with a driver in the area.
Although Uber asks its users to provide their phone numbers, Lyft does not collect this information.
While the apps are highly similar, there are some critical differences between Uber and Lyft. The most crucial difference is the price point between the two companies.
Lyft’s base fare (the amount that drivers are paid) is $2.50 per mile traveled, while Uber’s base fare is $2 for each mile traveled.
While the Lyft fare is higher, the company allows riders to tip their driver of choice. Uber does not.
Lyft has set itself apart by branding itself as a friendlier, more approachable alternative to Uber. Because of this, Lyft has made an effort to appeal to its customer base on a more personal level.
Lyft, like Uber, offers an iOS and Android app. Lyft boasts 30 million customers and 2 million drivers in the United States and Canada, but none outside of the continent.
Recently, the company announced that it would begin offering free Lyft rides (up to $25) to users who cannot drive due to alcohol consumption or other impairment.
The move is meant to draw a more apparent distinction between Lyft and Uber, as the former has striven to be seen as more customer-friendly and less aggressive than its competitor.
Both companies appear to be working hard to outdo each other to appeal to their customers.
So far, Lyft has made some bold moves that have paid off, but it’s still too early for anyone to say definitively that they’ve won the ride-sharing competition.
Founded: 2013 Best known for: The company has partnered with several industry leaders, including Spotify.
“Bolt” is a ride-sharing company that was founded in 2013.
Bolt is an Estonian mobility firm based in Tallinn that provides vehicle rental, micro-mobility, car-sharing, and food delivery services.
It has approximately 300 cities in 45 countries in Europe, Africa, Western Asia, and Latin America.
The firm has 75 million clients worldwide, and over 1.5 million drivers use the Bolt platform to deliver trips.
Markus Villig (then just 19 years old, a high school student) created Bolt (formerly named Taxify) in 2013, intending to aggregate all Tallinn and Riga cabs onto a single platform.
He recruited a developer to help him start the firm, which was then named mTakso, with €5,000 from his parents, who also assisted him by providing customer assistance outside of their usual working hours.
The service was started in August 2013, and it expanded to international lands in 2014.
The company operates much like Uber and Lyft, but because it does not use the word “Uber,” the name “Bolt” has caught on as shorthand for the company.
Bolt claims to be “the Uber of private taxis” and uses the same app as both Uber and Lyft, with similar branding.
Bolt is currently operating in San Francisco, Los Angeles, and Seattle, but the company has plans to expand its reach across the United States.
While the Bolt app is very similar to both Uber and Lyft’s apps, there are some key differences between the three companies.
For starters, Bolt claims that its drivers are more experienced than other ride-sharing companies.
Additionally, Bolt operates differently than other ride-sharing startups by partnering with other innovative companies like Spotify.
Lyft and Uber have both partnered with Radtheatrically, a company that surveys drivers to determine their driving habits.
The companies then use this data to understand what kind of driver they are, how long they’ve been driving for them, and other helpful information.
Bolt has also partnered with Spotify, a music streaming service that helps the company track its drivers.
Traditional taxi drivers are the original Uber competitors. They have been providing the same service since the beginning of time, and they still do today.
Traditional taxi drivers must adhere to a set of regulations set out by the government, including a uniform for drivers and a means to collect fares.
Additionally, traditional taxi drivers are required to have a commercial license to operate their business.
Traditional taxi companies may purchase land or lease space in an area where they can house their vehicles for customers.
Because traditional taxis are so old school, they may mix up colors for their vehicles in order to differentiate themselves from one another.
In most cities, taxi drivers will have a unique paint job on their cars, so they stand out from the rest of the crowd.
Traditional taxi companies may also have a certain logo or color scheme that they use to differentiate themselves from one another.
Traditional taxis have been around for a very long time, and Uber is considered a competitor to conventional taxi drivers because it requires less overhead and is harder to regulate.
Uber is also a direct competitor to the taxi industry because many of the traditional taxi drivers have switched over to Uber’s platform.
Traditional taxis have been in business since the beginning of time, so they have had a lot of time to become experts in what they do.
Gett, formerly known as RideScout, was founded in Tel Aviv in June 2011 by Yonatan Martikow and Idan Ofer.
The company expanded rapidly with its launch in New York City in October 2012 and its expansion into London in October 2013.
Gett’s operations in the United States and the United Kingdom were merged and re-branded as Gett in 2015, with Yonatan Martikok as CEO.
Gett partners with local taxi companies to offer taxis to customers through its app. It has a profit-sharing business model, and drivers can receive up to 100% of their fare (minus specific fees) as profit
. As such, only well-rated drivers may drive for Gett. It is similar to Uber in the way drivers are matched with passengers but does not allow for surge pricing.
In 2014, Gett launched a carpooling service similar to UberPool, but without the pricing incentives. In 2015 it expanded to include services in London and Tel Aviv.
In 2016, the company changed its name from Gett to Gett LCC and launched a brand-new transportation infrastructure that would compete against taxi companies.
The company unveiled a fleet of fully electric, self-driving cars for this initiative.
Getaround is a peer-to-peer carsharing company that offers rental cars on sharing economy model. Getaround was founded in May 2009 by Jessica Scorpio and Sam Zaid.
With a $1.725 million subsidy from the Federal Highway Administration, Getaround began servicing Portland, Oregon, in 2012.
Getaround agreed to take over City CarShare’s fleet, parking spots, and member base in November 2016.
Getaround received $300 million in financing from Softbank in August 2018.
According to reports, the firm has five million subscribers and about 20,000 linked automobiles globally as of 2019.
Getaround made its public debut on May 24, 2011, at the TechCrunch Disrupt conference.
Boston, Chicago, the San Francisco Bay Area, New Jersey, Portland, Seattle, Philadelphia, Miami, Atlanta, San Diego, Los Angeles, Denver, and Washington, D.C. are all locations where the firm operates.
Getaround acquired the carsharing company Drivy for $300 million in April 2019 and relaunched as Getaround six months later.
Getaround uses similar rules to Uber’s business model by allowing users to request a car for hire. Users must register with the company to gain access to a car rental network service.
Getaround, founded in 2009, offers more cars than their competitors but at a higher price with lower driver payouts and liability coverage for damage to your vehicle while their customers are using it!
SHARE NOW is a German carsharing firm created by the merging of car2go and DriveNow.
It is a joint venture between Daimler AG and BMW that provides carsharing services in metropolitan locations throughout Europe and North America.
It has over four million registered members and a fleet of over 14,000 cars in 18 cities across Europe.
The firm exclusively rents Smart, Mercedes-Benz, BMW, Mini, Fiat, and Citroen automobiles and organizes one-way point-to-point rentals.
Users are charged by the minute, as well as hourly and daily rates.
Hirers gain access to the car through the use of a smartphone app.
Car2go was a subsidiary of Daimler AG and operated in 23 cities across the world. The company was founded in April 2008 by Rainer Schwarz and is headquartered in Austin, Texas. Car2go allows users to rent out automobiles for as little as one hour.
Car2Go operates similar to Uber and Lyft and offers car rentals on-demand with no pre-scheduling necessary.
The company had over 40,000 registered customers across the United States, and its service is available in 23 cities around the world.
ReachNow was founded in Seattle in 2016 by BMW Group. The company provides on-demand ridesharing and uses a self-serve, online platform to enable users to order and pay for carpools or ridesharing services.
ReachNow was a carsharing service operated by BMW Group in Seattle, Washington, Portland, Oregon, and Brooklyn, New York.
It began operations in 2016 and will cease operations in Seattle and Portland on July 17, 2019. It managed a fleet of approximately 1,000 automobiles and utilized a mobile app for car reservations.
It was one of three car-sharing businesses in Seattle, alongside car2go and Zipcar.
ReachNow was comparable to another BMW Group service, DriveNow, except it, was limited to cities in North America, beginning with Seattle.
Unlike DriveNow, which is a joint venture with Sixt, ReachNow is a wholly-owned BMW business, with RideCell supplying the technological platform rather than Sixt.
ReachNow operated similar to Uber by allowing users to request a ride using its web or mobile application.
Drivers were required to pass a background screening process.
The company partnered with the BMW car rental service, giving users access to an increasing amount of luxury vehicles in major cities across the United States.
Zipcar is a car-sharing firm based in the United States and a part of Avis Budget Group.
Zipcar offers car bookings to its members, which are billed by the minute, hour, or day; users may be required to pay a monthly or yearly membership fee in addition to vehicle reservation fees.
Antje Danielson and Robin Chase launched Zipcar in 2000.
Avis Budget Group acquired Zipcar for approximately US$500 million on March 14, 2013.
Scott Griffith, who had led the firm for the previous ten years, left the day after the transaction closed and was succeeded by Mark Norman, a new company president.
Kaye Ceille took over as Zipcar’s North American President in early 2014. Kaye Ceille joined Avis Budget Group International as managing director in the summer of 2016.
Zipcar started in September 2016 that it has 1 million subscribers in 500 locations across nine countries and offers over 10,000 automobiles.
Members may reserve automobiles at any time via the Zipcar mobile app, online, or in some instances by phone, either immediately or up to a year in advance.
Zipcar members have automatic access to automobiles by using an access card that opens the door; the keys are already inside.
Members may also use the Zipcar Android or iPhone app to find a Zipcar by blowing its horn and unlock the doors.
Zipcar levies an application fee, an annual fee, and a reservation cost. The price includes fuel, parking, insurance, and maintenance.
Members are issued an access card with a wireless chip that allows them to unlock the vehicle they have reserved just at the time it is reserved.
The reservation includes vehicle insurance, a gas card for the car, reimbursements for gasoline purchased at service stations that do not accept the supplied gas card, and up to $15 in reimbursements for everyday auto maintenance items such as car washes and window wiper fluid refills.
A Zipcar member may book and utilize a Zipcar in any Zipcar city.
Most people have heard of public transport, but many don’t know what it is. Public transport is a form of transportation that allows people to move from one place to another on foot, by bus, train, or other vehicles.
Public transport has evolved over time to include buses, streetcars, subways, monorails, and more.
This helps cut down on the miles driven by cars and trains, which can help reduce pollution levels in the air.
It also provides an opportunity for socializing with others that may share your commute routes, such as fellow commuters or those you pass on the street.
If you’re looking for more information about this topic, then keep reading because we’ve got all sorts of facts about public transit for you!
Uber Competitors FAQs
What are the similarities and differences between Uber and Lyft?
Both Uber and Lyft provide unique and less expensive alternatives to taxis and long-established private transportation services.
Both provide passengers with a simple and creative method to request and pay for transportation via their cellphones.
The service regions, services, and cultures of the two organizations are vastly different.
Because each company’s drivers are independent contractors with varied car types and personalities, each journey will be unique even if you frequently use the same service in the exact location.
For those who utilize their applications, Uber and Lyft also provide meal delivery services.
There are some significant distinctions between Uber and Lyft.
Lyft enables customers to tip drivers 2–3 days after the journey, but Uber allows users to tip drivers in cash or before the trip ends.
Uber has been chastised for compensating its drivers but has promised to make adjustments to enhance their working conditions.
Lyft has avoided some of the problems that have dogged Uber. However, it has been accused of withholding money from drivers who travel on interstate roads.
Both operate in Canada and the United States, but Uber’s influence extends to other places worldwide.
The average cost differs as well, with Uber scoring lower than Lyft for a typical journey.
Which is less expensive, Lyft or Uber?
Which service is the cheapest is determined by the sort of service you want to use. According to typical transportation expenses, Uber is the less expensive firm, with the average trip costing $20 against $27 for an average Lyft journey.
What are the challenges facing peer-to-peer ride-sharing services?
-Increased competition with other car service companies such as taxi cabs
-High turnover rates due to difficult working conditions (low wages, long hours)
-Inadequate safety precautions for drivers and passengers alike, combined with low driver training standards
-Customer and Employee Retention: With competition on the rise, customer and employee retention can prove to be a challenge for Uber.
-Dependency on the workforce: Uber’s heavy dependence on its workforce and internet has not been advantageous for the company.
-Limited insurance coverage for drivers
-High costs for passengers due to declining insurance coverage.
-Lack of regulation of driver qualifications and training.
The first, fourth, and fifth challenges are very important since they will affect the likelihood of new ridesharing services’ continued growth.
To understand what the first challenge is, one must first understand what a taxi cab is. A taxi cab is a taxicab that is used primarily for transporting people from one place to another.
Because the primary function of the taxicab is transportation, this service must be regulated.
To prevent someone from simply taking a taxi cab and driving around, safety rules must be enforced.
Taxi cabs should be inspected and verified as being safe and suitable for use as a car service before they can be put on the road.
What are the barriers to entry in the peer-to-peer ride-sharing business?
There are a number of barriers to entry for those who are contemplating entering the peer-to-peer ride-sharing market.
To start, those who are considering becoming a driver will face a variety of hurdles. First, you’ll need a vehicle to meet the requirements outlined by Uber and Lyft.
In addition, you’ll need to pass a number of background checks, including a criminal background check. You’ll also need to provide a vehicle inspection by a third-party mechanic at a certified facility.
Finally, you need a social security number and a driver’s license, as well as a clean driving record.
In addition to those barriers, those who are considering entering the peer-to-peer ride-sharing market should also review their state’s laws and regulations about insurance coverage.
Uber and Lyft require that you carry a minimum of $1 million in liability insurance to cover bodily injury and property damage.
They also want you to carry $50,000 in liability coverage to cover uninsured/underinsured motorists and contingent comprehensive/collision coverage.
Be aware that each state has its own laws and regulations regarding insurance coverage.
Make sure to research your state’s laws and regulations before entering the market and purchasing additional insurance to cover your vehicle if needed.
What is Uber Technologies?
Uber Technologies is an American multinational transportation network company offering services that include peer-to-peer ridesharing, ride service hailing, food delivery, and a bicycle-sharing system.
What are the opportunities?
The two largest ridesharing companies in the U.S., Uber and Lyft, recently launched services in the healthcare industry.
Uber Health provides rides for patients and caregivers to get to and from care and for providers to get crucial staff to work
Driverless Technology and other services. Uber has the potential to venture into driverless technology and other special transportation services like ambulances or other forms of emergency vehicles.
What is Uber’s market share in USA?
It has 71% of the market share which is simply outstanding.
What are the challenges facing Lyft?
Traditional taxis are not out of the market yet.
What are the challenges of Uber and Lyft in USA?
It should be mentioned that many people in the USA use both Uber and Lyft regularly making the market difficult for both companies.
What is Uber?
Uber is headquartered in San Francisco, California, and offers peer-to-peer ridesharing, taxi cab, food delivery, and transportation services.
What services does Uber provide?
Uber is a transportation network company and most people know them for their ride-sharing service.
But Uber also has several other services they offer to riders and drivers, including:
UberEATS, which delivers food from local restaurants;
UberLIFT, which offers rides for seniors and people with disabilities
AstroTurf, where you can rent an on-demand lawnmower in your area; and
Uber Health that connects patients to doctors through video visits or phone consultations.
What is Uber’s business strategy?
Uber is a company that provides ride-hailing services. They offer both carpooling and rides to individuals based on the location of the drivers and passengers.
Uber’s mission is to make transportation as reliable as running water, everywhere for everyone.
The company has faced significant competition from traditional taxi companies, public transit systems, and other private services such as Lyft or Gett in some markets.
As a result, it has diversified its offerings by introducing UberEATS (food delivery) and other similar applications like uberHOP (public transit).
Recently they have also begun testing autonomous cars with the goal of eventually phasing out their human drivers altogether.
In addition to these new ventures, Uber continues to offer more affordable options than taxis. Every day, millions of people get rides with Uber and the service is rapidly expanding into other countries.
Uber’s business strategy includes;
-Dynamic Pricing Strategy: Uber has remained consistent in its dynamic pricing strategy.
-Expansion: Uber’s model of providing an app and a ride has expanded across the world.
-Platform: Uber is also offering new types of rides and is developing more and more services that they can offer.
-Investments: Uber has continued to invest heavily in its business to stay competitive. Not only with driver wages but also with technology and research for new vehicles.
-Insurance: Tying insurance policies with rides is one way to minimize the risk of accidents.
-Upgrades: Uber is constantly upgrading its app in order to make it a user-friendly experience.
Uber has been able to continuously offer insurance to their riders, unlike other competitors.
They have been able to continue this strategy by having a better understanding of the risk/reward ratio in the business and finding ways to buy insurance at a lower premium.
In general, Uber does not add any additional fees onto their final charge for services.
What are the benefits of using the Uber app vs traditional taxis?
Traditional taxis are expensive, inefficient, and they’re not good for the environment.
Ube is a new ride-sharing app that provides an affordable alternative to traditional taxis with no surge prices or waiting in lines.
It also helps reduce traffic by matching riders with nearby drivers.
What are the benefits of Uber ride?
-Accountability and Performance: Customers are no longer impressed by unorganized cab services that have been over the market.
-Availability: There is also no concern regarding the availability of the service since the app is always available.
-Discounts: Although booking through Uber can be less expensive than traditional cab services and fares, discounts and promotions are also sometimes offered.
-Cost: Uber has reduced the cost of transportation in major cities like New York and San Francisco. This is due to the fact that they have reduced their costs through their dynamic pricing strategy.
-Customer Service: Customers can get assistance through the app and live chat features. The feature makes it easy to request rides and pay for them.
-Flexible Scheduling: One of the most important benefits of Uber is that you can schedule a ride before you go out. This has been made possible through the app itself.
-Social Media Integration: You can find Uber drivers on Twitter, Instagram, and Facebook, inviting people to join your ride.
What’s happening in the rideshare industry?
With the exception of a late 2020 dip, sales have been gradually recovering since April 2021.
Will rideshare prices rise?
As the rideshare industry continues to rebound from the pandemic, consumers might start paying more for their rides.
What’s the average transaction value for an Uber ride?
Likewise, the average transaction value for an Uber ride in September was $19, a 20 percent increase from one year ago.
What is Uber’s impact on the city?
This has helped to promote a shift from private vehicle ownership to a more efficient and effective shared economy, which fits well within a city’s transport mix.
What are the benefits of UberEats?
Apart from its core ride-hailing business, Uber’s expansion into the food delivery service with UberEats is gaining popularity across the globe.
What are the concerns about Uber vetting?
- The Uber vetting process has historically been shown to be inadequate to ensure rider/driver safety.
- The vetting process does not give drivers access to criminal records, or convictions. This makes it difficult for Uber to find out about the details of the driver’s background especially when they are new to Uber.
- Due to insufficient vetting, there have been numerous incidents where drivers came with previous charges for crimes that included sexual assault, kidnapping, and murder.
- There is also no way of verifying whether or not the driver is qualified to drive you home safely if you are drunk.
- Uber drivers have also faced discrimination based on their race, gender, and religion.
- Uber has also faced accusations of trying to cut costs in the vetting process by using personal information endorsed by their drivers’ social media accounts. This is not really verifiable due to the fact that it is a privately owned company.
- Uber has also not been able to prevent its drivers from overcharging riders, or the use of bogus rideshare apps.
What are the concerns?
Stakeholders in the Uber ecosystem have reported a number of safety and security issues, including sexual assault, violence, and other violations.
What are the benefits of food delivery?
This has served the market well and helped the restaurant industry at a time where dining-in was restricted or prohibited.
What are the challenges facing Uber?
- Fierce competition means Uber will need to work hard and creatively to retain its customer base.
- Lack of transparency with riders and drivers.
- Lack of performance standards for drivers and riders
- Uber’s reputation among government officials has been less than pristine as they have been accused of altering driver records, as well as breaking laws in some cities that ban taxis from picking up passengers off the street.
- Uber is also facing opposition from traditional taxi organizations within many cities where it operates.
- Uber has also experienced a number of executive and employee problems and it has been said that the company may face challenges in this area.
- Some drivers have also complained about Uber’s booking policies, which they claim do not suit the drivers’ needs.
What are the drivers’ concerns?
Drivers may switch to rival platforms due to better incentives from competitors from the ride-hailing space or from other parts of the sharing economy.
What is Uber’s business model?
To maintain its customer-centric model, Uber keeps its rates low and only takes between 5% to 20% of payments, leading to low-profit margins.