UBER

STUDY

UBER

FACT OR FICTION: Uber will suffer significant customer defection because of their recent public mistakes.

Companies today face greater scrutiny of their activities than at any time in history. How they act, not just what they say, is increasingly captured, shared and commented on everywhere from traditional media to conversations among friends and family. With that scrutiny comes the temptation to instantly predict explosive growth or imminent doom for companies on a day-to-day basis.

Our May 2017 Uber “Fact or Fiction?” Study aims at putting a balanced, quantitative foundation behind Uber’s multiple scandals to help assess the impact on Uber’s reputation, competitive position, and finances.

In this study, we seek to answer the following questions in particular:

  • To what degree has Uber’s reputation been tarnished by the multiple reports of poor business practices?
  • How will the negative press impact short-term switching behavior for Uber customers?
  • What is Uber’s projected financial loss–both in terms of number of customers and revenues–over the next 12 months?
  • Which ride-hailing services (if any) are most likely to benefit from the fallout?

Methodology

  • Online survey of 1,502 primary customers who use ride-hailing services
    • 1,047 Uber primary customers.
    • 455 primary customers of other ride-hailing services. (Curb, Flywheel, Gett, Hailo, Juno, Lyft, Sidecar, Taxi Magic, Via).
  • Sample is representative of the U.S. Market.
  • Field dates: March 13th through March 17th, 2017

“The behavior of the Uber CEO and sexual harassment claims concern me and make me question the operations of the business.”

– Lyft & Uber Customer

Revealing Statistics

81%

of consumers surveyed are aware of Uber’s scandals and negative
perceptions have increased from 9% pre-news to 27% post-news

26%

of Uber’s current customers are exploring alternatives
within the ride-hailing category

4%

of Uber’s current customers have already made the switch
to a ride-hailing competitor

“Lately Uber has been having a lot of negative media coverage regarding the CEO. Not sure I want to continue supporting the business.”

– Uber Customer

Overview of Key Findings

Uber has $696 million in revenue at risk over the next 12-18 months and Lyft would stand to benefit the most from the fallout.

For more detailed information, request a copy of the full study.