Recent political events may have provided an opening for Uber’s competitors to take a bite out of the ride-sharing service’s dominance in New York. During demonstrations at JFK Airport two weeks ago over President Donald Trump’s travel ban, Uber’s response was regarded by some to be more in league with the White House than with the protesters, and a #DeleteUber campaign went viral. In the aftermath, more than 200,000 customers shut down their accounts, The New York Times reported. That led to a related bump in downloads for Lyft and two other apps, Via and Juno.
By Jan. 30, two days after the anti-Uber campaign began, Lyft had risen to No. 4 on the iPhone free apps chart, from 47th the previous week, while Uber fell to 13th place from 4th, according to research firm Sensor Tower.
“This is a great opportunity for Lyft, particularly in this industry, where it’s not really clear that Uber’s services are much different from the others’,?” said Michael Barnett, a professor of management at Rutgers Business School. “Lyft has gotten customers to try their app who probably wouldn’t have bothered to switch if it wasn’t for this.”
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Downloads of carpool service Via spiked 30% the week after #DeleteUber kicked off, a spokeswoman said. Downloads for Juno doubled, and ridership rose 20%, according to its chief executive, Talmon Marco.
Uber ends 2016 down
While Uber and Lyft were getting closer to their typical rankings by last week—Uber in the No. 10 spot and Lyft at No. 34—the backlash underscores Uber’s newfound vulnerability, at least in the New York market. According to a Crain’s breakdown of Taxi & Limousine Commission data, Uber ended 2016 with its market share at 73%, down from 83% at the start of last year.
Uber’s bad week began with the protests that erupted the day after Trump’s executive order on Jan. 27 blocked entry by refugees and citizens from seven Muslim-majority countries into the U.S. After the New York Taxi Workers Alliance called a one-hour strike in support of the protests, Uber tweeted that surge pricing had been turned off for riders to JFK Airport. The move was perceived by many as an attempt to undermine the strike, even though, as Uber later pointed out, its tweet went out after the strike was over. The company also said it simply wanted people to know they could get to the airport at its normal rates.
Surge pricing has been turned off at #JFK Airport. This may result in longer wait times. Please be patient.
— Uber NYC (@Uber_NYC) January 29, 2017
Uber may have been trying to avoid a repeat of past controversies when its fares surged during an emergency. But analysts say the company was both tone-deaf and less prepared than it should have been. Uber was already viewed as overly friendly with Trump because its CEO, Travis Kalanick, had joined the president’s business advisory council.
Capitalist bully?
In addition, the company has built up a cutthroat reputation because of its many battles with local governments and its sometimes questionable behavior, like hiring an investigative firm to dig up dirt on adversaries in a lawsuit. The result of that take-no-prisoners approach has been rapid growth—and a loss of trust among some consumers.
“They are more vulnerable to being criticized than their competitors because they have fostered an image of ‘We will do whatever we can to make money,’?” said Michael Ramsey, a Gartner research director specializing in the automotive industry. “Contrast that with Lyft, which has tried to craft their image as the kinder, gentler company that is more caring about their drivers.”
Uber disputes the idea that it’s a capitalist bully, and it has gone to great lengths to show its support of immigrants and opposition to Trump’s policies. Where Lyft pledged $1 million to the ACLU, Uber, playing catch-up, created a $3 million legal-defense fund for its drivers. And after being pressured by drivers and employees, Kalanick quit Trump’s advisory council. That got the company taken off the target list of #GrabYourWallet, the online campaign that pushed for Nordstrom and Neiman Marcus to drop Ivanka Trump–branded merchandise.
Source: Taxi & Limousine Commission/NYC Open Data
Uber also says its New York business is doing just fine.
“New York continues to be one of our fastest-growing markets in the world, and we are committed to making Uber the best option for New York drivers and riders,” a spokeswoman said. “This includes standing with any drivers who have been impacted by this ban.”
Lyft has a long way to go to put a dent in Uber’s dominance: Its New York market share is just under 12%. But branding experts say it came out of the past two weeks ahead.
“I’m not saying it’s going to crush Uber,” said Reed Bundy, founder of Ethostrategies, which advises companies on corporate social-responsibility issues. “But this has been an important opportunity for Lyft to solidify its brand, and that will have lasting impact for them.”
Recent political events may have provided an opening for Uber’s competitors to take a bite out of the ride-sharing service’s dominance in New York. During demonstrations at JFK Airport two weeks ago over President Donald Trump’s travel ban, Uber’s response was regarded by some to be more in league with the White House than with the protesters, and a #DeleteUber campaign went viral. In the aftermath, more than 200,000 customers shut down their accounts, The New York Times reported. That led to a related bump in downloads for Lyft and two other apps, Via and Juno.
By Jan. 30, two days after the anti-Uber campaign began, Lyft had risen to No. 4 on the iPhone free apps chart, from 47th the previous week, while Uber fell to 13th place from 4th, according to research firm Sensor Tower.
“This is a great opportunity for Lyft, particularly in this industry, where it’s not really clear that Uber’s services are much different from the others’,?” said Michael Barnett, a professor of management at Rutgers Business School. “Lyft has gotten customers to try their app who probably wouldn’t have bothered to switch if it wasn’t for this.”
Downloads of carpool service Via spiked 30% the week after #DeleteUber kicked off, a spokeswoman said. Downloads for Juno doubled, and ridership rose 20%, according to its chief executive, Talmon Marco.
While Uber and Lyft were getting closer to their typical rankings by last week—Uber in the No. 10 spot and Lyft at No. 34—the backlash underscores Uber’s newfound vulnerability, at least in the New York market. According to a Crain’s breakdown of Taxi & Limousine Commission data, Uber ended 2016 with its market share at 73%, down from 83% at the start of last year.
Uber’s bad week began with the protests that erupted the day after Trump’s executive order on Jan. 27 blocked entry by refugees and citizens from seven Muslim-majority countries into the U.S. After the New York Taxi Workers Alliance called a one-hour strike in support of the protests, Uber tweeted that surge pricing had been turned off for riders to JFK Airport. The move was perceived by many as an attempt to undermine the strike, even though, as Uber later pointed out, its tweet went out after the strike was over. The company also said it simply wanted people to know they could get to the airport at its normal rates.
Surge pricing has been turned off at #JFK Airport. This may result in longer wait times. Please be patient.
Uber may have been trying to avoid a repeat of past controversies when its fares surged during an emergency. But analysts say the company was both tone-deaf and less prepared than it should have been. Uber was already viewed as overly friendly with Trump because its CEO, Travis Kalanick, had joined the president’s business advisory council.
In addition, the company has built up a cutthroat reputation because of its many battles with local governments and its sometimes questionable behavior, like hiring an investigative firm to dig up dirt on adversaries in a lawsuit. The result of that take-no-prisoners approach has been rapid growth—and a loss of trust among some consumers.
“They are more vulnerable to being criticized than their competitors because they have fostered an image of ‘We will do whatever we can to make money,’?” said Michael Ramsey, a Gartner research director specializing in the automotive industry. “Contrast that with Lyft, which has tried to craft their image as the kinder, gentler company that is more caring about their drivers.”
Uber disputes the idea that it’s a capitalist bully, and it has gone to great lengths to show its support of immigrants and opposition to Trump’s policies. Where Lyft pledged $1 million to the ACLU, Uber, playing catch-up, created a $3 million legal-defense fund for its drivers. And after being pressured by drivers and employees, Kalanick quit Trump’s advisory council. That got the company taken off the target list of #GrabYourWallet, the online campaign that pushed for Nordstrom and Neiman Marcus to drop Ivanka Trump–branded merchandise.
Source: Taxi & Limousine Commission/NYC Open Data
Uber also says its New York business is doing just fine.
“New York continues to be one of our fastest-growing markets in the world, and we are committed to making Uber the best option for New York drivers and riders,” a spokeswoman said. “This includes standing with any drivers who have been impacted by this ban.”
Lyft has a long way to go to put a dent in Uber’s dominance: Its New York market share is just under 12%. But branding experts say it came out of the past two weeks ahead.
“I’m not saying it’s going to crush Uber,” said Reed Bundy, founder of Ethostrategies, which advises companies on corporate social-responsibility issues. “But this has been an important opportunity for Lyft to solidify its brand, and that will have lasting impact for them.”
A version of this article appears in the February 13, 2017, print issue of Crain’s New York Business.
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