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by jpalomaki 3483 days ago
Or could you actually get rid of your own car and ride only on Uber? Due to it's scale, Uber might be able to offer competitive pricing.

If there is no driver involved the cost structure for you and Uber is pretty much the same. Except Uber can probably negotiate better deals on new cars and service (due to volume) and also achieve higher utilization. On the other hand, Uber of course needs to make a profit.
3 comments
marklyon 3483 days ago
I've done exactly this. I live in a city with ok, but not great, public transit. When we started having constant issues with our metro, I started taking Uber to and from work.

It's more expensive than the train, but cheaper than buying a car, paying operating expenses, paying for parking at my apartment and paying for parking at work by a dramatic amount.

For longer uses or multi-stop errands, I grab a Car2Go or a Zipcar. For whole-day trips or longer, I head to National where I can pick any car from the Aisle for around $50/day.

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prostoalex 3483 days ago
> Uber can probably negotiate better deals on new cars and service (due to volume)

Same argument could be applied to car rental businesses (some of which are owned by automakers which makes the relationship super-cozy), yet I've never seen a deal from Avis or Hertz to make it a worthwhile replacement to owning.

Big cities have an added cost of parking and extra miles driven to find a gas station or a public charger. But big cities also have low-cost public transportation (or so I've heard, I live in LA).

In smaller towns the cost of ownership tends to be lower and with sub-$10,000 products on the market http://jalopnik.com/5072303/new-pricing-of-9990-makes-2009-n... you have a reliable guaranteed ride whose cost is usually spread over 6-7 years.

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IanCal 3483 days ago
I actually find the cost of renting cars makes a decent amount of sense for me, given how infrequently I use them. However, it's such a hassle, since I've got to go quite out of the way to where they're kept and I can only return them at inconvenient times (or I have to rent for two days because they're not open at the weekend, for example).

Being able to book one to use for a journey then let it go home would be great.

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prostoalex 3483 days ago
Yeah, agree on that. Some rental places don't mind delivering the car to you, e.g. https://www.hertz.com/rentacar/productservice/index.jsp?targ... and I vaguely remember some startup car rental place advertising just that.

Important to note that currently it's the Uber and Lyft drivers that are subsidizing the cost of getting the car to you - they are not getting paid for the miles driven. Whether or not this cost will be subsidized by Uber/Lyft in the future remains to be seen.

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soufron 3483 days ago
Why would they get better deals than car companies themselves?
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