Using ride-hailing services such as Uber or Lyft as a full-time transportation option is twice as expensive as owning a car, says a new study by the AAA.
The average driver in an urban area drives 10,481 miles per year, said the AAA. Based on that mileage, annual ride-hailing costs in Washington are $21,093. That amount is more than twice the cost of owning a personal vehicle, even when factoring in the expense of fuel, insurance, parking and the vehicle itself, the study found.
The average annual cost to own and operate a new vehicle, the costliest form of vehicle ownership, is $7,321 for 10,841 miles of a travel per year. Because parking can be a major ownership expense for urban residents, AAA also analyzed the costs of flat-rate parking per year, with an average cost of $2,728. For those with access to free parking, relying on ride-hailing services is nearly three times more expensive then vehicle ownership.
“For those who travel a very limited number of miles annually, or have mobility issues that prevent them from driving a personal vehicle, ride-hailing can be a viable and important option,” said John Nielsen, AAA’s managing director, Automotive Engineering and Repair. “But for everyone else, the car is still king.”