Ride-hailing services can cost urban drivers $20,118 annually, which is more than twice the cost of owning a personal vehicle, including the price of the vehicle, insurance, fuel, and parking, according to the AAA Foundation for Traffic Safety.
The average annual cost to own and operate a new vehicle is $7,321 for 10,841 miles of travel annually, according to AAA’s annual Your Driving Costs study.
Parking costs are a major ownership expense, averaging $2,728 annually. For drivers with access to free parking, however, ride-hailing services are nearly three times more expensive than vehicle ownership.
“Whether you own a vehicle or not, ride-hailing services are a convenient transportation option,” John Nielsen, managing director of Automotive Engineering and Repair, said. “However, with the average American city-dweller driving nearly 11,000 miles per year, a personal vehicle is still the more cost-effective choice.”
AAA analyzed the costs of ride-hailing services in 20 major urban areas. The services were the least expensive in San Diego at $17,316 annually and the most expensive in Boston at $27,545.
“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.