Uber vs. Used Car Ownership: A Year Later
Uber claims its service can replace car ownership—and my experience with a used Toyota Yaris proves their point.
I recently calculated my expenses from the past year, comparing them to the costs of Uber, Lyft, and public transportation when I didn't own a car. Despite making frugal choices, owning a car turned out to be more expensive than expected. This supports Uber's argument that its gig-worker drivers and self-driving cars compete with traditional car ownership.
A year ago, my wife and I bought a used Yaris on Facebook Marketplace for just over $6,000—a significant contrast to the excitement typically associated with purchasing a new vehicle. However, as Uber executives have suggested, the rising cost of new cars makes owning one less appealing.
Uber's Case: The Future of Car Ownership
Uber President Andrew MacDonald recently emphasized that new car prices are higher than ever, making ownership a worse deal. CEO Dara Khosrowshahi has predicted that robotaxis will significantly reduce car ownership over the next two decades, likening driving to horseback riding.
Your experience may vary. Calculations depend on your location, vehicle cost, depreciation rate, and local transportation options.