They might be cheaper than taxis, but relying on ride-hailing apps, such as Uber and Lyft, as a primary transportation option is still far more expensive than owning a car for the average traveler, a new study finds.
The analysis, conducted by the AAA Foundation for Traffic Safety, found that calling a car to traverse the distance of the average urban driver — 10,841 miles per year — would cost just more than $20,000 annually, nearly triple the expense of owning a vehicle.
“Ride-hailing services like Uber and Lyft are a convenient transportation option. And they can work well for those who travel a limited number of miles every year,” said Marie Dodds, public affairs director for AAA in Oregon and Idaho, in a Tuesday press release. “However, considering that the average American city-dweller drives nearly 11,000 miles annually, a personal vehicle is still the more cost-effective choice.”
Even factoring in fuel, insurance, parking and the cost of the car, the study found owning and operating a new vehicle costs an average of $7,321 annually. For people who drive less than 3,000 miles per year, ride-hailing is the better economic option over car ownership, the AAA analysis concluded.
The average commuter in Seattle, the only Pacific Northwest metro included in the study, would pay $23,951 per year to travel exclusively using ride-hailing services.
