RIVAL APPS: Uber competition keeps London’s ridehail market prices stable
London’s ridehail market has proven to be a standout example of how competition can help maintain price stability, according to latest research.
Over recent years, the presence of four to five major rideshare companies that include Uber, Bolt, Addison Lee and FREENOW, has kept prices steady, offering a sharp contrast to the fluctuating costs seen in other major cities around the world.
According to the Obi Global Rideshare Report 2024, the average price per minute for a ridehail journey in London remains relatively stable at £3.43, with a per-minute cost of £0.89. This stability is particularly striking when compared to the situation in other global metropolises. In cities like Paris, Los Angeles, and New York, ridehail prices are significantly higher, and the costs often fluctuate more unpredictably.
One of the key indicators of the intense competition in London’s ridehail market is the pricing for airport transfers. The report highlights that in 30% of cases, the prices to and from London’s airports are identical across the major ridehail providers. This suggests a highly competitive environment where companies are constantly striving to match or undercut each other’s prices to attract customers, particularly for these lucrative routes.
This competitive pricing environment benefits consumers but also reflects broader trends within the industry. The Obi Global Rideshare Report 2024 offers insights into how the industry has evolved in the wake of the COVID-19 pandemic, combining proprietary data with public sources to explore critical issues such as driver pay, price trends, the impact of competition, and the growth of green rides. The report’s findings suggest that the industry is undergoing significant changes, with competition playing a central role in shaping these developments.
The relative affordability of rides in London compared to other global cities is likely to be a key factor in maintaining the popularity of ridehail services among Londoners. Despite rising costs in other areas of life, ridehail prices in the capital have remained a cost-effective option for many consumers, but questions could be raised whether the stagnant pricing helps drivers during a time of economic instability and inflation.
