Spending in the so-called “sharing economy” is showing big gains among business travelers, who are increasingly turning to ride-sharing apps like Uber and Lyft as well as the accommodations-sharing service AirBnB.
That’s according to the latest analysis of business traveler expense reports compiled by the travel and expense management company Certify, covering the second quarter of 2015.
Among its key findings: Business travelers are now spending more on Uber rides than on traditional taxicabs; and spending on accommodations booked through AirBnB, while still relatively small compared to traditional hotels, posted a growth rate of 143 percent just from the first quarter to the second quarter. Uber now accounts for 55 percent of ground transportation spending compared with 43 percent for taxis, the report said, noting that the market share of both taxis and rental cars have declined as ride-sharing services grow.
In sorting data by destination, Certify determined that sharing services are most popular among business travelers to the epicenter of the sharing economy, San Francisco, where Uber accounted for 79 percent of spending on local rides, and spending on AirBnB was highest in the country at an average of $558 per stay. (Story continues below graphic.)
“It’s clear that the sharing economy is here to stay for business people,” said Certify CEO Robert Neveu. “We believe this market shift is based on both convenience and price, since these newer services are typically more cost-effective compared with traditional vendors. Established travel providers will need to adapt quickly or face further market share erosion to the sharing economy.”
Although Uber dominates in ground transportation, the report noted that competitor Lyft is actually cheaper, with an average expensed cost of $22.51 per ride vs. $30.03 for Uber and $34.48 for taxis. Just over a year ago, Uber claimed just 22% of local ground transport– now it’s vaulted to 55%.
Meanwhile, business travelers continue to favor Starbucks and fast food over other types of food and beverage outlets when they’re on the road. Below are some statistics from the Q2 Certify spending report.
Most-Expensed Restaurants: Caffeine, burgers and doughnuts are our fuel, right?
Starbucks: 4.67% of expenses, averaging $10.77 per receipt
McDonald’s: 2.73%, averaging $7.75
Subway: 1.65%, averaging $16.69
Panera Bread: 1.62%, averaging $37.9
Dunkin’ Donuts: 1.32%, averaging $11.57
Most Expensed Airlines: Delta is killing it with business travelers
Delta: 20.07%, averaging $410.64
United: 13.46%, averaging $413.19
American: 11.7%, averaging $364.14
Southwest: 11.15%, averaging $304.84
US Airways: 07.58%, averaging $302.46
Most-Expensed Hotels: Marriott & Hilton brands rule
Marriott: 8.76% of expenses, averaging $243.07
Hampton Inn: 8.15%, averaging $228.52
Courtyard by Marriott: 6.52%, averaging $173.48
Hilton Garden Inn: 4.10%, averaging $190.13
Holiday Inn Express: 4.04%, averaging $239.08
Most Expensed Car-Rental Services: We are loving our Emerald Aisle, right?
National: 23.82%, averaging $180.52
Enterprise: 16.27%, averaging $181.78
Hertz: 14.49%, averaging $215.85
Avis: 13.79%, averaging $179.85
Budget: 03.96%, averaging $196.16
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