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Uber slows down its growth and Lyft takes advantage of it

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Uber Technologies’s growth has slowed after a series of scandals has allowed the main competitor of a shared travel company in the United States Lyft to gain a larger market share. As a result of the news, the analyst has shrunk its forecast for Uber’s growth over the next few years. The latest projections are that 48 million adult Americans will use Uber at least once this year, which is 18% more than last, but well below expected 51 million.
The forecast is based on Uber and Lyft data analyzes, such as tracking and downloading of apps, as well as user surveys made by JP Morgan and other companies.
The report reflects the impact of Uber’s series of scandals involving last year, including an internal investigation into sexual abuse and employee behavioral problems. a
Meanwhile, Lyft has grown rapidly, adding over 160 cities to its list last year. The company has benefited from Uber’s shaken position and from position at a late stage in markets already familiar with shared travel services. On Monday, Lyft said it had a 35% market share in the United States, and in 16 of its American sub-markets its share was over 40%.
The research reflects the company’s competitive shortcomings after last year’s problems. Previous predictions were for 44 million users in 2017, but the actual figure was below 41 million.
Even so, Uber remains the dominant US shared travel service. At the end of the year, it will have a market share of about 77% below the 90% of 2016. Lyft will have 48%, which is over 29% a year earlier.
The forecast for 2022 shows that Uber will have 74% of users and Lyft 59%. This is because some users use both services.