Editors' pick: Originally published April 21.
Yellow cabs in New York City are starting to feel a lot more like the payphones that still occupy real estate on city sidewalks where pedestrians pass by, staring at their smartphones. For taxis, it's both the smartphone and Uber, the service you can use to hail a car with one, that are killing the cab.
For the first time ever, business travelers coming to New York are using Uber and services like it to get around more than taxis, according to a new report from expense-management software company Certify.
New York City is the most protected taxi market among major U.S. cities, but for the first time, Uber overtook yellow cabs as the top choice of business travelers in the first quarter, reaching 51% market share, up from 44% in the fourth quarter and only 9% two years ago.
Nationwide, Uber's dominance over taxis for business travelers has been true since the second quarter of 2015 (see chart below).
For taxis across the country, things are only more dire now. In the first quarter 2016, ride-hailing services reached 46% of the business traveler market share. Meanwhile, taxis fell to an anemic 14% share of business traveler wallets among Certify customers, down from 20% in the fourth quarter and 37% two years ago. The six percentage point sequential share decline is the worst quarterly drop for taxis since ride-hailing services entered markets in 2011.
Ride-hailing also widened its market share advantage versus rental cars to six points. Ride-hailing services have gone from 8% to 46% in the same 24 months -- unprecedented speed from market entry to No. 1 share in a large and mature market.