UPDATED 23:58 EST / MAY 14 2018

EMERGING TECH

Uber tinkers with minor app feature as Lyft steals more market share

In a tale of two companies, one with perpetual issues and the other a rising star, Uber Technologies Inc. today announced a new rating feature in its app while archrival Lyft Inc. announced it has stolen even more of Uber’s market share.

Tinkering while Rome burns — or in this case, killing pedestrians with reportedly faulty software — Uber announced a new feature that allows users to rate and tip drivers while they are still taking the Uber, not just after the fact.

“When you have feedback to share, you shouldn’t have to wait to share it with us,” Uber said in a statement. “You’ve got places to go and things to do, and we never want to miss an opportunity to listen and improve. That’s why we’re introducing the ability to rate, compliment, tip and share feedback during your ride — and doing more with the feedback you share with us.”

In the meantime, the number of users in the U.S. who couldn’t care less what Uber is doing with its app is rapidly increasing, as Lyft disclosed internal market share numbers for the first time.

According to CNBC, Lyft now claims to have a 35 percent market share in the U.S., up from 20 percent 18 months ago. Crediting more activations of passengers and customers and greater brand awareness, the company said its market share is more than 40 percent in 16 U.S. markets and that it enjoys majority share in “multiple” markets, although it didn’t disclose which ones.

Those numbers back a report released by research firm eMarketer that notes that Uber’s growth has slowed as a series of scandals has allowed Lyft to grab more market share. “Uber’s brand image took an even bigger hit than expected as it grappled with a series of scandals and PR disasters in 2017,” Shelleen Shum, eMarketer’s forecasting directorm told Reuters. “Lyft, which had been rapidly expanding its coverage, seized on the opportunity to brand itself as a more socially conscious alternative.”

Noting that some people use both Lyft and Uber, eMarketer predicted that Uber at the end of the year will access around 77 percent of ride-hailing users, down from 90 percent in 2016, while Lyft will access 48 percent, up from nearly 29 percent.

Photo: Uber

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