Do Ride-Sharing Services Save You Money?

Ride-sharing companies have been in the news lately. Lyft become a public company in March and Uber announced plans to do so shortly.

Have you ever wondered what those services would cost if you didn’t own a car and relied on them exclusively?

AAA ran the numbers for you. The average urban driver logs about 10,841 miles on their car each year, says AAA.

Operating your own car costs you about $7,321 each year, or 68 cents per mile. (That includes fuel, insurance, parking, and the cost of the car itself).

A ride-sharing service for the same number of miles would cost you about $20,118, says the automobile guru.

(Of course, if you live in New York or San Francisco and would pay astronomical rates for parking, your cost calculation may be entirely different).

So if you have good public transportation where you live or just use a ride service occasionally, those ride-sharing services can be a huge convenience and also a good money-saver (not to mention better for the environment).

But if you use a ride-hailing service every day, you may find that owning your own car is still the way to go.

About Mari Adam

Mari Adam, Certified Financial Planner™ and President of Adam Financial Associates Inc, has been helping individuals and families chart their financial futures for over twenty-five years. Have a question about your financial situation? Ask Mari!

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2 Responses to Do Ride-Sharing Services Save You Money?

  1. Janet Malley richard April 21, 2019 at 4:29 pm #

    Mari, Thanks for doing the numbers on this question! I’ve been wondering if it would pay to just go with the ride-hailing service option. Not yet!!!

    • Mari Adam April 22, 2019 at 12:59 pm #

      Very convenient but we’re probably not there yet! Especially if you need to call a Lyft or Uber every time you go to the grocery store!

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