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?!


  • 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.

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