Catch Uber everywhere and sell your car – why not?
Have you ever wondered if it would be cheaper to sell your car and catch an Uber everywhere?
I have, that’s why I did the numbers.
Oddly enough, there’s something else that’s even more economical than Uber.
The Three alternatives:
1. Uber Vs. Owning your own car
Uber is not even an option if you:
Drive small children in harnessed seats
Have a large family
Travel/explore long distances
Have a lot of cargo; boat, caravan, bikes, surfboards, stand up paddleboard, trailers, horses
I have all of the above which means Uber* rarely works for me on a daily basis, travelling around Sydney with 2+ surfboards, 2+ bicycles, a 14-foot SUP or the family.
Practicability simply beats economics.
Uber Vs. Average Car Usage
If you drive less than the Average Australian driver (13,700km each year)** then Uber can be a valid alternative.
Then the decision becomes Ubers Vs. Taxis - which one is better? We’ll get to that in a second.
Uber Vs. Light-car use**
Uber is better than owning a car when:
You travel less than 3,000km a year,
Average 9km Uber trips, and
Take up to six Uber trips per week
But there is an even cheaper way to get around than Uber..
2. Uber Vs. Taxi
Studies have shown** that Uber-ing around Sydney can be cheaper than Taxis:
9 times out of 10 trips (just check your account on NYE for the 1 out of 10 times)
It is 30% cheaper on average
Surge pricing only occurs 14% of the time
Uber was found to be more reliable than Taxis AND a more pleasant experience.
3. Uber Vs. Car-Sharing
Car-Sharing*** beats Uber and owning your own car when:
You don’t have to transport luggage, cargo or family
You drive less than 30,000km a year
How much cheaper is Car-Sharing?
Over three years, for the average Australian car travelling 13,700km/yr:
Owning a Car is 2 x the cost of Car-Sharing
Uber is 5 x more expensive than Car-Sharing
Over three years, for the light-user car-owner travelling only 3,000km/yr:
Owning a Car is 10 x the cost of Car-Sharing
Uber is equivalent in cost to owning a Car
The numbers are in and the verdict appears mixed.
But the action steps are simple:
Sell your car if you can (no cargo/luggage/family to transport)
Uber when you’re:
In town / CBD
Somewhere that would require hefty paid parking (CBD / Airport)
Travelling short distances in heavy traffic (work, relax or sleep while someone else drives you)
Unable to drive home safely (NYE etc.)
Car-Share all other times
How much money can I save?
Over three years mixing Uber and Car- Sharing the savings should be:
About $10k for the average Australian car driver
More than $17k for the light-use driver
Disclaimer: This is not personal advice. Consider whether this information is appropriate for your circumstances.
*UberX prices from ubersetimate.com.
** Australian Bureau of Statistics, NSW Fuelcheck, Carsales.com.au, Canstar, Choice, greenslips.com.au, Roy Morgan, Service NSW.
*** Publicly available prices for Car Next Door.