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

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

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 9, 2025 - Diana Ionescu

Map of Haussmann's redesign of Paris in the 1850s through 1870s under Napoleon III.

In Urban Planning, AI Prompting Could be the New Design Thinking

Creativity has long been key to great urban design. What if we see AI as our new creative partner?

June 30, 2025 - Tom Sanchez

View of dense apartment buildings on Seattle waterfront with high-rise buildings in background.

King County Supportive Housing Program Offers Hope for Unhoused Residents

The county is taking a ‘Housing First’ approach that prioritizes getting people into housing, then offering wraparound supportive services.

4 hours ago - Real Change

Aerial view of suburban housing near Las Vegas, Nevada.

Researchers Use AI to Get Clearer Picture of US Housing

Analysts are using artificial intelligence to supercharge their research by allowing them to comb through data faster. Though these AI tools can be error prone, they save time and housing researchers are optimistic about the future.

5 hours ago - Shelterforce Magazine

Green bike share bikes parked in a row on a commercial street with outdoor dining and greenery.

Making Shared Micromobility More Inclusive

Cities and shared mobility system operators can do more to include people with disabilities in planning and operations, per a new report.

6 hours ago - Cities Today