Thinking About Replacing Your Car With A Ride-Hailing Service? It’ll Cost You Twice As Much

A handful of analysts have suggested ride-hailing services – such as Uber and Lyft – will usher in the era of “peak car” and a decline in private car ownership. However, a new study from AAA suggests this is a horrible idea.

According to the AAA Foundation for Traffic Safety, consumers thinking about ditching their car for ride-hailing services should think again. The group says the average person in urban areas drives around 10,841 miles (17,446 km) every year. That’s a significant amount of mileage and using ride-hailing services as the primary method of transport would cost urbanities around $20,118 (£15,589 / €17,382) annually.

That’s more than the cost of some new cars and AAA says the figure is “more than twice the cost of owning a personal vehicle, even when factoring in the expense of fuel, insurance, parking and the vehicle itself.”

AAA ran the math for a number of different cities and found that using ride-hailing services, as well as the occasional rental car, would cost well over $20,000 (£15,498 / €17,280) in a handful of major cities. The costs vary by city and Dallas was the most affordable with an annual price tag of $16,944 (£13,130 / €14,640). Boston, on the other hand, was the most expensive as it would cost $27,545 (£21,343 / €23,798) every year.

While owning a gas-guzzling truck isn’t easy on the wallet, it’s still significantly cheaper than relying on ride-hailing services. According to AAA, driving a pickup 10,841 miles (17,446 km) every year would only cost $7,321 (£5,672 / €6,325).

Of course, city dwellers also have to deal with parking and that can cost up to $8,088 (£6,266 / €6,988) a year in New York. However, the average across all the cities was $2,728 (£2,113 / €2,357).

The end result of all this was best summed up by AAA’s managing director of automotive engineering and repair who said “For those who travel a very limited number of miles annually, or have mobility issues that prevent them from driving a personal vehicle, ride-hailing can be a viable and important option.” However, “for everyone else: the car is still king.”

  • Хиллари сосет киску

    I’m absolutely not thinking about replacing my cars for ride sharing hailing bs!!!

  • pcurve

    was anybody expecting something different?!

  • MILLENNIALS AND THEIR APPS FOR EVERYTHING. COOL UNTIL YOU GET THE BILL AT THE END OF THE MONTH.

  • brn

    Thanks Captain Obvious. If you drive 10K+ a year, it doesn’t make sense to pay someone else to drive you. If you drive 1K miles per year, that’s a different story.

  • Shane

    I thought these were for the nights you were actually too drunk to find your keys and drive.

  • roy

    “For those who travel a very limited number of miles annually, or have mobility issues that prevent them from driving a personal vehicle, ride-hailing can be a viable and important option.” However, “for everyone else: the car is still king.”

    Obviously. Hell as far as my city is concerned it is even more expensive that normal cabs ( which was not the case a year or so back. Any form of ownership is always more affordable than this ride handling/ lease/subscription bs, provided you are not willing to change the product after using it for very limited time period.

  • Ch!mp

    Studies in Europe have found that when people start using ride-hailing services, they never come near the same amount of km/miles as they drove before. They analyze their transport behaviour and choose the most optimal transport mode depending on what they want/need. So it is incorrect to just say that when someone is driving 10k km/miles annually, they will be driven the same amount of km/miles using a ride-hailing service. Having a car just makes transport a no-brainer.

  • Perry F. Bruns

    My ride-share drivers never look like her.

  • MarketAndChurch

    exactly. it would be far far far cheaper if they included public transportation, I only used a car when traveling out of the city, traveling with more than two people, or hauling stuff around, like hauling furniture back to my apartment.

Fiat Will Not Build A Successor To The 124 Spider – And That’s Sad

Fiat believes that the MX-5-based roadster isn’t important in its future and will focus on small cars instead.

F1 Starts Wind Tunnel Testing Of 2021-Spec Aero Pack

The final touches are being made to the overhauled 2021 F1 season regulations that aim to ultimately make overtaking easier.

If Only BMW Made A Street-Legal, V8-Powered i8 Like This Racer

It looks like an i8, but apart from that, it has absolutely nothing in common with BMW’s hybrid sports car.

Glacier White Metallic Audi A7 Sportback Poses At The Forum

In 55 TFSI quattro spec, the A7 Sportback is capable of hitting 60 mph in just 5.2 seconds.

Nissan Still Weighing Its Options On The R36 GT-R’s Powertrain

The successor to the 12-year old GT-R will either be a hybrid or an all-electric. And that’s a definite maybe…

2020 Porsche Taycan Interior Fully Revealed, Even The Passenger Gets A Touchscreen

The Porsche of the future sure is futuristic.

Chevrolet Details 2020 Bolt, Confirms 259 Mile Range

Despite being able to travel an extra 21 miles, the car will still cost $37,495 before incentives.

Audi Could Team Up With BMW And Mercedes On Autonomous Driving Tech

An announcement could come at the Frankfurt Motor Show.

Richard Hammond Celebrates His Mid-Life Crisis With A (….Sponsored) Ford Ranger Raptor

Richard Hammond even shocks his passengers with some off-roading in the Ford Ranger Raptor.

Lamborghini Teases A Mystery Model For Frankfurt, Could Be A Limited Edition Hypercar

The model appears to draw inspiration from the 2017 Terzo Millennio concept.