Readily available, cost effective and chauffeur driven, Ola and Uber cabs are gaining in importance, making one sit up and take note of the fact that these vehicles could be more advantageous to owning a car.
To set a benchmark, ET Wealth has drawn a comparison between owning a new Maruti Suzuki Swift LXi petrol priced at INR 4.78 lakhs and hiring a cab from either Ola or Uber over a period of 3 years.
Where ownership of the vehicle is concerned, various factors such as loan cost, insurance cost, registration and taxes, maintenance, chauffeur salaries, running cost and parking have all to be taken into account. This runs up to a total of INR 13 lakhs over a period of 3 years. Considering the resale value of Maruti Swift after three years at INR 2.5 lakh, your total expenditure of owning a car stands at INR 10.5 lakh.
In case of hiring Uber Go at today’s rates, you will spend INR 4.32 lakh at the end of three years. In case of Ola Mini, you will spend INR 5.2 lakh by the end of three years. These are estimated if you hire the cab for travelling 33.3 kms daily (two trips, each of 16.65 kms). The detailed comparison can be seen in the images below.Tip – Click on the image to enlarge.
This comparison clearly indicates that hiring a taxi is much cheaper than owning a car. But, there are pros and cons to each side of the story. If you own a car, there are no hassles of either booking a car or waiting for the cab to arrive on time. Instant access to one’s own vehicle certainly outweighs all the other advantages of hiring a cab. Quick trips over weekends, use of your own vehicle in the event of an emergency or visit to a hospital and safety for women travelers are other options to be taken into account.
On the other hand, if you don’t have a large family and don’t care about the social status upliftment which comes along with buying a car, we really don’t see a point in buying a car, if it is under INR 5 lakh.