Earlier, you either owned a personal vehicle or chose one of the many state-owned modes of public transport. Today’s scenario has completely evolved to help us keep abreast with the times.

Studies have shown an upward trend in car ownership for years now. Some households even own more than one vehicle to fulfill the needs of a larger family. At the same time, the demand for ride-sharing services has skyrocketed.

Uber, the humble ride-hailing company that rose to its current ranks since 2009, operates across 70 countries. The company’s vehicles made a shocking 9.4 billion trips in 2023. It is quite understandable that its popularity has to do with how easily it connects drivers to riders using a smartphone application.

People use such ride-hailing services for various reasons, including speed, convenience, affordability, and more. However, the question of the hour is whether Uber is as cheap as it is made out to be. In this article, we will understand its true costs in detail.

Costs Carowners Must Cover

Before we redirect our attention to Uber, let’s set the foundation with the costs car owners must typically cover.

If a buyer is in the process of buying or leasing a car, they may have a monthly loan payment to make. This amount will vary depending on the cost of the car and how much money one has put into it. For instance – a new car’s payments will be higher than a used one.

Another mandatory expense for car owners is that of insurance. This cost may not necessarily be expensive but could still go higher than $1,000 per year depending on the vehicle.

The third cost car owners must cover is that of maintenance. This will ultimately hinge on the vehicle’s age and make. Maintenance costs are usually higher in the case of used cars as there may be more issues involved.

The gasoline costs account for the fourth expense, which will depend on the type of car and how much it is driven. A large SUV will use up more gas when compared to a small-sized sedan.

Parking costs can be glaring in big cities. If one has to park frequently, these will soon add up. In some cases, free parking near residences and workplaces can lighten this load.

How Much Cheaper is Uber?

Now that we’ve discussed the different costs car owners must bear, let’s compare against Uber and see if it’s any cheaper. The company’s pricing calculations fluctuate throughout the day, depending on the type of vehicle, time of the day, traffic, etc.

On average, the company charges around $1 or $2 for every mile driven. On comparing this against a personal vehicle, we find that the costs are slightly higher. Let’s suppose we still have no issues with it due to the benefits of convenience and ease of use.

Even then, there are some concerns that must be dealt with first. For instance – Uber has increasingly shared the negative light for cases of theft and sexual assault. A recent incident took place with an Irvine student in Orange County. She filed an Uber sexual assault lawsuit against the company for negligence and battery, alleging that the driver raped her.

Such cases are not uncommon at all. Drivers fake themselves and approach a person only to rob or sexually assault them. As per TorHoerman Law, over 350 similar lawsuits have been filed as of August 2024. That’s a 20.56% increase from the previous month. This issue with safety is much more alarming than extra costs borne by car owners for commuting (if any).

Factors to Consider Before Choosing Between Personal Vehicle or Uber

We have given you a rough idea of how Uber fares against car ownership costs. Now, let’s look at the different factors that must be considered before choosing between a personal vehicle and ride-sharing.

Lifestyle

The lifestyle and individual or family leads will significantly impact costs for vehicle ownership. If a family has two or more children, they’re better off driving around in their private vehicle. It can get inconvenient to carry around a car seat everywhere.

The same goes for people with pets or a hyper-busy lifestyle where they must run errands frequently. For such, availing of Uber can be more of a hassle.

Maintenance Time

Time is the most valuable currency they say. It cannot be measured in dollars and that is exactly why you must account for it. Owning a car can take up some serious maintenance time.

This would include repair work, going for car washes, waiting in line at the mechanic’s, and more. With ride-sharing services, there’s no need to worry about these.

Safety

Is safety largely a myth? It can be said so since we’re never entirely safe. Bad stuff can happen anytime, anywhere. If an Uber car can be caught in an unfortunate accident, so can someone’s personal vehicle. It is also possible for someone to be robbed or assaulted out of their own vehicle.

However, as discussed above, the risks are higher with ride-sharing companies like Uber. There are ways to minimize these risks like following some strict safety protocols – cross-checking the driver, sharing one’s location, etc.

More often than not, safety trumps over everything. One thing is certain that trends in car ownership and Uber usage are rising neck-to-neck. Uber even made a 15.93% increase in revenue year-over-year since 2017.

We believe the question of the hour is which of the two is affordable and convenient based on individual reasons. There can be no one-size-fits-all answer to the question – is Uber really cheaper than owning a vehicle?