With corporate travel increasing with an ever growing economy, travelers have shown their preference turning to ride-hailing services when they are on the road. Expense management firm Certify, with their year-end analysis of more than 50 million expense reports in 2017 has concluded Uber and Lyft were the choice for more than two-thirds of the corporate travel receipts it analyzed. The trend continues to grow from 56 percent of all ground transportation receipts in 2016 to 68 percent of all the ground transportation receipts the company managed. Certify at the same time said business travelers are renting fewer cars and taking less taxis while traveling. The overall share of the market saw rental vehicles reduced by 8 percent to make up a quarter of overall ground transportation receipts. Taxis fell by four percent and only accounted for abysmal seven percent.
The decline of the rental car demand by business travelers is one of the many reasons car rental stocks have diminished. Shares of Hertz has dropped by 71 percent over the last three years while Avis Budget Group has fallen 19 percent over the same period. By Comparison, the S&P 500 has climbed 41 percent over the same period. While the car rental market will survive since it services multiple niches the taxi industry will continue to reel with the growth and demand of ride-hailing services. And as long as accidents continue to happen, drivers will require replacement rentals which will allow the car rental market to flourish. Whereas if Uber and Lyft continues to infringe on the taxi market, taxis may be a thing of the past. "A healthy business travel market is a key driver of a strong economy, and year over year we are seeing a sharp increase in our business travel data," said Robert Neveu, CEO of Certify.