Business Travel News Ridesharing “The car is still king” AAA study shows ride-hailing services cost TWICE as much yearly as owning a vehicle By BMaaS Contributor Posted on August 30, 20185 min read Ride-hailing services might seem like a money-saving alternative to buying a car for people who live in urban areas. But according to a new study, it’s not nearly as cost-effective as you’d think. Stock image View original post.Ride-hailing services might seem like a money-saving alternative to buying a car for people who live in urban areas.But according to a new study, it’s not nearly as cost-effective as you’d think.The AAA Foundation for Traffic Safety found that using ride-hailing services like Lyft and Uber as a primary mode of transportation works out to be far more expensive than owning a car – even with fuel, insurance, parking, and the vehicle itself considered.Study found relying on ride-hailing services could cost roughly $20,118 per yearThis is for people in urban areas who use it as primary mode of transportationIn comparison, cost of car ownership is $7,321 annually for 11,000 miles travelAccording to the new AAA study, relying on ride-hailing services could cost a person roughly $20,118 per year.The study focuses on urban settings, which are the only practical environments where personal cars could be replaced with ride-hailing, AAA notes.In urban areas, the average driver puts 10,841 miles on their car per year.Even in cities with lower annual ride-hailing costs, such as Dallas, TX ($16,944), the expense is still much greater than the costs associated with car ownership.An earlier study by AAA found that the average new car costs a driver $8,469 annually, or $706 per month based on 15,000 miles driven.For 10,841 miles of travel annually, the firm estimates the cost to be around $7,321.‘Whether you own a vehicle or not, ride-hailing services are a convenient transportation option,’ said John Nielsen, managing director, Automotive Engineering and Repair.‘However, with the average American city-dweller driving nearly 11,000 miles per year, a personal vehicle is still the more cost-effective choice.’In some major urban areas, the estimated annual costs for people who rely on ride-hailing services are staggering.In New York, AAA estimates people pay about $21,279 per year – and in Boston, this number is upwards of $27,000.Parking is one area that can be a killer when it comes to cost; according to the AAA estimates, this costs anywhere from $706 (Phoenix) to $8,088 (New York) per year.But, even with this expense considered, using ride-hailing services was found to be the more costly option.The AAA Foundation for Traffic Safety found that using ride-hailing services like Lyft and Uber as a primary mode of transportation works out to be far more expensive than owning a car – even with fuel, insurance, parking, and the vehicle itself considered. Stock imageFor those lucky enough to have access to free parking, the use of ride-hailing services works out to be almost three times as expensive as 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,’ Nielsen said.‘But, for everyone else: the car is still king.’ Share on Facebook Share0 Share on TwitterTweet0 Share on LinkedIn Share Send email Mail
Smart cities are saving residents over 125 hours per year View original post. Integrating modern technology into both new and aging cities is changing …