Can they save you money?
Uber, Lyft, and other ridesharing apps have become increasingly popular over the past few years. From its inception, the millennial generation quickly adapted to the idea of ordering a ride directly from their phone. The convenience of ordering up a ride in mere seconds, and the ease of paying directly through the app made it a huge hit, but more riders are beginning to use Uber for their regular transportation, rather than for an occasional night out on the town. The increasing popularity of such apps begs the question—can ridesharing be one of your money saving tips?
How Much Does it Cost to Own a Car?
The amount of money you will shell out for the privilege of driving will be dependent on many different factors. For example, if you are driving a new car vs. an older car will affect your monthly payments on the vehicle and your insurance. If you are driving a gas guzzling SUV, you will spend more time and money at the gas pump than someone driving a hybrid vehicle. How often you drive, your current location, and the parking situation around your home and work also factor into your monthly driving costs.
According to Business Insider, someone living in the city of San Francisco is likely to spend about $1,500 per month for driving privileges. Difficult parking, high insurance rates, and rising gasoline costs have pushed many younger San Francisco residents to ditch their ride in favor of public transportation and Uber rides. Uber users often hail the service as a money saving tip.
It is important to note, however, that cities like San Francisco and New York City are outliers and are known for being overly expensive. A study by AAA found that a person driving a new car in an average city is likely to spend around $750 per month to own and operate a vehicle. This figure includes car payments, gasoline, insurance, maintenance, and parking fines.
How Much Is Your Average Uber Rider Spending?
According to Money, the average Uber ride costs around $13.50, while an average Lyft ride clocks in at $12.50. Many rides will cost significantly less. However, there is a base rate. Some trips, depending on distance, the time of day, and the weather will cost substantially more. For example, for a ride within New York City, a rider can expect to spend about $30 per trip.
Riders can lower their per fare rate by signing up for the Uber Pool option. With Uber Pool, the rider is not guaranteed a straight trip, as the driver will pick up multiple fares at a time, but riders essentially split up the fare, making it far cheaper for each rider. If a rider doesn’t have somewhere to be at a specific time, this can lead to significant savings.
Can Ridesharing Save Money?
The answer is a bit complicated and will be mostly dependent on your lifestyle and how often you’ll need to use ridesharing services. For individuals who find themselves in need of a car just a couple of times a week, this can be a great way to circumvent the cost of owning a car and everything that goes along with it. For an individual who drives every day because of lack of public transportation options, Uber and Lyft rides can add up quickly and eclipse the cost of owning a vehicle. To figure out if ridesharing can save you money, you’ll need to sit down and figure out how often you need to drive, how often you are willing to access private transportation, and also figure out how much your car is costing you on a monthly basis.
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