Despite concerns around the future of shared mobility, Uber and Lyft are well-positioned to capitalize on the multi-billion dollar opportunity in healthcare-related transportation.
Ride-hailing has taken a substantial hit in the wake of the Covid-19 pandemic, as lockdowns and health safety concerns have dampened demand for shared mobility services.
In Q1’20, Uber and Lyft reported steep declines in their ride-hailing units, with Uber’s business falling 80% and Lyft highlighting a 75% drop-off in demand.
While concerns around vehicle sharing may dissipate over time, both Uber and Lyft are looking to build out other opportunities in other areas with more reliable demand, which include healthcare-related applications such as medical transportation and supply delivery.
Access to healthcare remains an issue for many, as 30% of medical appointments are missed due to lack of transportation options. These missed appointments cost the US healthcare industry roughly $150B a year.
In response, Uber and Lyft have been highly focused on addressing non-emergency medical transportation (NEMT), or providing rides to medical appointments for individuals that can’t drive themselves. Uber estimates that NEMT alone could be a $15B opportunity.
Applications for Uber and Lyft’s services also exist beyond NEMT, including food delivery and the transportation of medical supplies, two areas that have seen a surge in demand as a result of the Covid-19 pandemic.
In this brief, we dig into what Uber and Lyft have done in healthcare to-date and what the future could hold.