Bumped — the tech company on a mission to create an ownership economy via stock rewards — released data from their two-year pilot study indicating that customers who became owners of their favorite rideshare brand stop riding with the competitor as much. In the case of Lyft, they claimed almost 20% share of wallet from Uber over the course of the study.
Over a two-year data study, Bumped automatically rewarded users in fractional shares of Lyft (LYFT) or Uber (UBER) stock when they spent with the company — study participants could only earn stock in one of the two brands. On average across the category, customers who became owners of their rideshare brand spent almost $30 more monthly and increased their monthly rides by 24%.
When Lyft riders were rewarded in LYFT ownership, their total monthly spend with the company increased 35%, and the number of monthly transactions increased just shy of 30%.
“The rideshare industry is directly tethered to user convenience. While both Lyft and Uber have loyal core users, anecdotal and transactional evidence tell us that many people use both companies as it suits their schedule and location,” says David Nelsen, CEO & Founder of Bumped. “Making a rider an owner of the company changed that perception. Riders began prioritizing their favorite brand, likely because they felt pride in ownership, and a true connection to the identity behind the service they were using.”
The Bumped pilot ran for two years and rewarded over 13,000 US consumers in fractional stock rewards when they spent at more than 80 brands. Users chose their favorite brand in each category to receive stock rewards from. Bumped managed the entirety of the pilot and results were not influenced by brand involvement.
The findings of the holistic Bumped pilot were researched and reported on by The Columbia School of Business, who released their independent study in February 2021.
Bumped is a tech company on a mission to create an ownership economy. The Bumped platform gives consumers the power to turn their everyday spending into free stock ownership, and their suite of tools helps businesses reward their customers in fractional shares of stock. Bumped believes that we all create the economy together, and we all should have the opportunity to benefit from it.