The company Lyft has seen a huge increase in business since Uber has been plagued with scandals and lawsuits.
Lyft has see bookings rise by 135% year-over-year in April, while Uber’s market share has dipped from 84% at the beginning of the year to 77% at the end of May.
Uber is still dealing with the fallout from a harassment lawsuit. Then, last week, the company’s CEO, Travis Kalanick, resigned.
The Daily Mail reports:
‘When it comes to their market share, the damage has been done,’ Michael Ramsey, a research director at Gartner, told Becky Peterson of Business Insider.
‘On the other side of Uber making these mistakes, Lyft has been the foil to them in that the impression they leave is that they’re a better run company with better values,’ he said. ‘You have to give them credit.’
Lyft, which is identified by its pink mustache symbol, recorded 70.4million rides in the first quarter of the year, up 142% a year earlier.
It has been helped by bad publicity for its rival, including the campaign #deleteuber put in place as a protest over surge pricing during disasters.
Now, Uber is struggling to catch up to Lyft. They are going to begin implementing new measures and app updates that will help to make the service stronger.
For example, Uber plans to launch a feature that will allow users to tip their driver: something Lyft has been doing since the beginning.
The resignation of the CEO was meant for the company to allow itself to focus on business ventures, rather than scandal.