Is it cheaper to Uber than buy a car?

Uber Technologies Inc. is an American international mobile ride hail company with headquarters in San Francisco, California. The technology allows consumers with smartphones to submit a trip request which is then routed to Uber drivers who use their own cars.

Uber works via an application which you download onto your smartphone and then input your credit card details. You can hail an Uber taxi at any time of the day or night via the app. The fare is automatically deducted via the app which is often at a lower cost than metered taxis.

The global disruptor has created a number of job opportunities worldwide, with numerous metered taxi drivers making the jump to Uber. The company continues to operate under a cloud controversy and is aggressively expanding its services globally.

As a digital disruptor, Uber has changed the transport industry and is making inroads into other industries as well.

For many people who’ve started using Uber, it’s offered a cheaper alternative to their usual mode of transportation.

It’s no secret that owning a car can be quite expensive. As a depreciating asset, a car can be quite costly to drive and maintain. This is mainly why more people are opting for cheaper modes of transport. More people are using Uber on a daily basis as a way to avoid sitting in traffic and to save money. You can work while sitting in traffic and there is no need to find parking.

This has led to the question: Is it cheaper to Uber than buy a car?

The simple answer is that it depends on how much you drive.

If you drive less than 50 kilometres daily it could end up saving you money. If you live close to work, commuting using Uber would save you more.

A car is expensive. It’s an asset, but it is not an investment. There are various costs that come with buying a car, such as depreciation, insurance, parking, cleaning, licences, fines, tolls and fuel.

Uber costs on the other hand, are variable. You only pay for what you use. Uber is available at an average cost of R9 per kilometre.

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