THE UBERMENSCH
Outpacing car rental and cab rides in the managed travel sector, Uber continues to change the industry. Traditional black car companies have introduced copycat technology. The nascent Uber for Business gained traction. If only the drivers would stop suing...
Uber has arrived. Led by co-founder and CEO Travis Kalanick, it has staked its claim in the corporate travel world. During the second quarter of 2015, Uber rides outpaced cab rides for business purposes for the first time, according to Certify expense reports, and the company is gaining ground on rental cars, as well. By the fourth quarter, Certify data showed, ridesharing outpaced rental cars, as well, accounting for 41 percent of total rides in ground transportation expenses, while rental cars’ share dipped to 39 percent and taxis dropped to 20 percent.
Meanwhile, the nascent Uber for Business program, which includes dashboards and tools for administrators to manage programs centrally, blossomed to more than 50,000 enrollees during its first year, though it’s unclear whether that translates to 50,000 travelers, 50,000 departments, 50,000 companies or some hybrid. As Uber built sales teams in major metropolitan areas, business accounts came in at the rate of about 1,000 per week, according to business team lead Max Crowley. Uber also has branched out into other corporate-adjacent areas, launching, for instance, a tool for meeting planners to manage an event’s transportation centrally.
While some buyers remain reticent of Uber’s safety and security, it has continued to gain ground in corporate program acceptance. IBM, the largest corporate travel program in the United States by air volume booked in the country, last year reversed its own ban on Uber use after support built up around a single employee’s petition to use the service. Many other buyers continue to employ a look-the-other-way approach, approving Uber expenses without endorsing the service outright.
Uber does face challenges, including a class-action lawsuit regarding whether it can classify its employees as independent contractors or must treat them as employees. Lyft and others also form a growing block of competitors. Yet, it seems unlikely Uber’s momentum will slow as it reaches critical mass among travel programs.