You’ve probably heard it before: Uber and Lyft are killing old school taxis. While it may be a tired trend to talk about, according to data from Bank of America Merrill Lynch, it is also true.
This trend was put in stark relief in one chart from BAML’s monthly review of customer card usage. The bank looks at retail and credit card spending for all BofA customers and showed that while the use of taxi/limo services has spike, the amount spent on traditional car services has tanked.
“After controlling for these companies, we see a decline in credit/debit card spending on the standard taxi and limo companies, implying that the disruptors have taken market share,” said BAML Us Economist Michelle Meyer in a note to clients on Wednesday.
Additionally, the disruption from Uber, Lyft, and other ride-hailing services have changed the method that people are using to pay for car services from cash to card.
“Moreover, it is likely that these disruptors also intensified the broader industry shift from using cash on these services to credit cards, explaining the dramatic sales growth in this category,” said Meyer.