Uber may be dominating Australia's rideshare market, but competitors DiDi and Ola are beginning to catch up

Catching an Uber? Image: Getty.
  • While Uber is the most popular rideshare platform in Australia, its competitors Ola and Didi are making inroads into the market.
  • Research from Roy Morgan found that while Uber had mainly competed with taxis previously, its now facing real competition from other rideshare companies.
  • Roy Morgan also found that Australians are willing to use multiple rideshare services.
  • Visit Business Insider Australia’s homepage for more stories.

There’s some stiff competition in Australia’s rideshare market.

Research from Roy Morgan found that while the majority of Aussies use Uber, fellow rideshare companies such as Ola and Didi have gained significant market shares.

Roy Morgan looked at the percentage of Australians over 18 who have used a rideshare company in the last three months. Of those, 93% used Uber, 20% hailed Ola and 14% caught a ride with Didi. As you can see from the overlap, some would even use multiple services.

Roy Morgan online survey, September 2019. Image: Roy Morgan.

Roy Morgan CEO Michele Levine highlighted that while Uber’s main competition had previously been taxis, it’s now faced with other rideshare companies which have entered the market.

“In recent years, the term ‘get an Uber’ was the only one that existed for Australians when it came to ordering a rideshare service,” she said in a statement. “However, that is now changing. Uber’s disruption of the private transport industry, and incredible success, has led to a host of other rideshare services entering the market.”

An Uber spokesperson told Business Insider Australia in an email, “We remain focused on delivering a great experience for our customers and our driver partners – not on other operators.”

“We welcome competition because it keeps us focused on delivering the very best product and experience for riders, driver partners and Uber Eats customers and partners.”

Levine added that more competition in the industry should benefit passengers as it could lead to lower prices.

When asked what it is doing to stand out from its competitors, DiDi Spokesperson Dan Jordan told Business Insider Australia in an email that the company is up to 10% cheaper than other rideshare providers.

“We also leverage our technology and global experience to ensure we deliver the best possible rideshare experience to Australia.”

Roy Morgan’s research also found many people who used other rideshare services also used Uber. For instance, 92% of Ola users also used Uber. The same was true of 84% of DiDi users.

“It shows that a considerable proportion of rideshare users are willing to use multiple providers when choosing a ride,” Levine said.

Ola Managing Director, ANZ Simon Smith told Business Insider Australia via email that its no surprise that Aussies are using multiple rideshare services.

“Over the past two years, we’ve successfully established ourselves as a major player in rideshare in Australia, driving choice and innovation locally and offering a safer, more affordable ride,” he said. “Ola welcomes competition in rideshare – it’s good for both passengers and drivers.”

While Uber, Ola and DiDi were the top three platforms people used, passengers used other services including Bolt (formerly Taxify), Shebah, GoCatch, Rydo and Shofer.

GoCatch, Shofer, Rydo and Shebah are all Aussie-based, while Bolt has its headquarters in Estonia. Shebah, however, is a rideshare service for women and Shofer is available in Perth.

Uber tops customer satisfaction list

Uber ranked the highest when it came to customer satisfaction, at 88%. It was followed by DiDi (75%) and Ola (72%).

Roy Morgan online survey, September 2019. Image: Roy Morgan.

“Uber has the highest customer satisfaction and the lowest dissatisfaction of the leading providers,” Levine said. “Both newer services have far higher levels of neutral responses regarding satisfaction than Uber indicating many consumers are still making up their minds.”

The Uber spokesperson explained that the company has been investing heavily in tech, mapping technology, customer support and business partnerships in the more than 6 years it has been in Australia.

“Uber leads by treating customers and driver partners as VIPs through Uber Pro and Uber Rewards and we will continue to lead on safety globally and at home through innovative always-on safety features,” they said.

In terms of who exactly is using rideshare companies, young people lead the way in trying out Uber competitors like DiDi and Ola.

“As we enter new markets, we find that the younger demographic has a higher propensity to be our early adopters,” Jordan told Business Insider Australia.

Uber on the other hand was most popular among people over 50 years old and evenly split between men and women.

“Newer services tend to target younger markets and are heavily weighted towards male customers with DiDi strongest amongst 18-29 year olds and a majority of Ola riders aged 30-49,” Levine said.

“The notable exception is the Melbourne based Shebah service which caters to a female market by prioritising the safety and security of its passengers.”


READ MORE:

Shebah’s CEO says the purpose of the ridesharing platform is to ‘monetise the labour of women’, as the company secures $675,000 in crowdfunding

Uber rival Ola will be in every capital city in Australia, as it continues its expansion across the country

Chinese rideshare platform DiDi is launching in Sydney in March, almost 2 years after it entered Australia

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