Buying a car is a goal for many people all over the world. With the advent of digital disruptor Uber, however, this has changed. Uber Technologies Inc. is an American international mobile ride hail company with headquarters in San Francisco, California. The technology allows consumers with smartphones to submit a trip request which is then routed to Uber drivers who use their own cars.
Founded as “Uber Cab” in 2009 by Travis Kalanick and Garret Camp, the company is now valued at around $50 billion.
With more people having access to smartphone technology, as well as the infiltration of Uber in various markets globally, more people are beginning to question whether there is a need to buy a car.
As a leader in the “sharing economy,” Uber has influenced ways in which many people travel to work on a daily basis for instance. This is why more people are asking themselves at what point ride sharing makes more financial sense than car ownership.
Let’s consider why you would buy a car if you can Uber:
The reality is that a car can be expensive to own. This is largely owing to arrange of factors, such as fuel expenses and depreciation among others.
Uber CEO Travis Kalanick believes that ultimately, owning a car will be a luxury and using Uber will be the first transportation choice for most people.
This may be a possibility, judging by how startups are transforming the way people move around cities.
Owning a car is not an investment and it can be costly to maintain it.
Other expenses associated with owning a car include:
- Licences, fines and tolls
On the other hand, benefits of taking an Uber include:
- Freeing up time to get more work done
- Your cost per km is constant
- You don’t have to try to find parking
The conclusion on why you should buy a car if you can Uber?
Research according to My Treasury.co.za found that South African drivers would save as much as R14 000 per year by switching to using an Uber. The real winners are those who live close to their work.