Comparing the Price of Uber and Car Ownership

Kyle Hill compares the cost of exclusively riding Uber to owning a car in the car-centric city of Los Angeles.

1 minute read

September 3, 2014, 6:00 AM PDT

By Maayan Dembo @DJ_Mayjahn


Lyft

Alfredo Mendez / Flickr

As reported by Ryan Lawler in TechCrunch, Hill calculated the cost of owning a car based on gas mileage, cost of gas, length of one's commute, and general parking costs. On average, driving and owning a mid-sized sedan in the US was about $8,876. Factoring in annual traffic and parking ticket cost, along with an "opportunity cost" of driving versus a mode of public transportation (where, presumably, you can answer emails and "get stuff done"), Hill estimated car ownership to be around $12,744.

Using U.S. Census Bureau estimates of number of trips and time spent in their cars each year, based on the cost of UberX in Los Angeles, Hill found that a user would pay $18,115 per year if riding Uber exclusively. Hill used the base fare and mileage costs for Los Angeles, and these costs vary greatly depending on the market. More importantly, the model does not factor surge pricing, mostly active during peak commute hours.

For the average Uber rider in Los Angeles, the crossover point when Uber is cheaper than owning a car is around 9,481 miles a year.

Monday, September 1, 2014 in TechCrunch

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 2, 2025 - Diana Ionescu

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Person wearing mask walking through temporary outdoor dining setup lined with bistro lights at dusk in New York City.

Restaurant Patios Were a Pandemic Win — Why Were They so Hard to Keep?

Social distancing requirements and changes in travel patterns prompted cities to pilot new uses for street and sidewalk space. Then it got complicated.

June 19, 2025 - Diana Ionescu

Aerial view of new neifhborhood under construction with enpty lots in foreground.

In California Battle of Housing vs. Environment, Housing Just Won

A new state law significantly limits the power of CEQA, an environmental review law that served as a powerful tool for blocking new development.

July 2 - CALmatters

Low-rise Pearl Sreet mall in Boulfer, Colorado.

Boulder Eliminates Parking Minimums Citywide

Officials estimate the cost of building a single underground parking space at up to $100,000.

July 2 - Boulder Reporting Lab

Two-story buildings with porches in walkable Florida neighborhood.

Orange County, Florida Adopts Largest US “Sprawl Repair” Code

The ‘Orange Code’ seeks to rectify decades of sprawl-inducing, car-oriented development.

July 2 - CNU Public Square