retail news in context, analysis with attitude

The Associated Press reports that the expense management system provider Certify says that during the second quarter of the year, " Uber accounted for 55 percent of ground transportation receipts compared with taxis at 43 percent."

Which is almost a complete reversal from the first quarter, when taxis had a 53 percent market share and Uber was at 46 percent.

Uber, for those who don't know, allows people to use a smartphone app to hail private cars for rides, allowing them to bypass traditional taxi services.

According to the story, "In a few cities, Uber beat out taxis by a wide margin for business travelers. In its home town of San Francisco, 79 percent of rides expensed through Certify during the second quarter were for Uber. In Dallas, 60 percent were for Uber and 54 percent in Los Angeles. Certify noted that it saw rental car transactions drop at the same time."
KC's View:
Sure, Uber's growth has not been without potholes and detours. But what it has shown us is that a disruptive business can always expose flaws in traditional business models ... and that once consumers decide to go down the new road, it may be very hard to get them back on the well-worn but increasingly irrelevant path they used to travel.

This is a scenario that can happen to every business, and any business. Be very afraid.