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The Cost Of Uber Vs Car Ownership In India

The Cost Of Uber Vs Car Ownership In India

Based on my tweet earlier, I got a lot of feedback on this topic. My rough calculation concluded that it was much cheaper to use Uber/Ola than owning a car.

To corroborate, I decided to polish my rough excel and create a self help version for anyone to play with various scenarios in case Uber/Ola decides to increase their prices in the future.

UBER vs Car Ownership Cost SheetUber-Cost-2

Note: If you want to compare against Ola, then take per KM cost of Rs.12.92 for cheapest Ola which takes into account Rs.100 for first 4 km, Rs.8 afterwards & Rs.1 for each minute.

Uber’s net per KM cost comes to Rs.11 if you take the base fare + other charges.

Owning a car has some non-monetary benefits like: 

1. Emergencies

2. Large families

3. Weekend/Out of Town trips

4. Pride of ownership

5. Less Hassle (calling & coordinating)

6. Enhanced safety (known environment)

Uber vs Own Diesel Car

Uber-Cost-3

Note:  If you want to compare against Ola, then take per KM cost of Rs.12.92 for cheapest Ola which takes into account Rs.100 for first 4 km, Rs.8 afterwards & Rs.1 for each minute Uber’s net per KM cost comes to Rs.11 if you take the base fare + other charges

Owning a car has some non-monetary benefits like: 

1. Emergencies

2. Large families

3. Weekend/Out of Town trips

4. Pride of ownership

5. Less Hassle (calling & coordinating)

6. Enhanced safety (known environment)

Ola vs Own Petrol Car

Uber-Cost-1

Note: If you want to compare against Ola, then take per KM cost of Rs.12.92 for cheapest Ola which takes into account Rs.100 for first 4 km, Rs.8 afterwards & Rs.1 for each minute.

Uber’s net per KM cost comes to Rs.11 if you take the base fare + other charges 

Ola vs Own Diesel Car

Uber-Cost-4

Note: If you want to compare against Ola, then take per KM cost of Rs.12.92 for cheapest Ola which takes into account Rs.100 for first 4 km, Rs.8 afterwards & Rs.1 for each minute.

Uber’s net per KM cost comes to Rs.11 if you take the base fare + other charges 

Here is the link to download the excel calculator. Have fun calculating!

Some findings

Overall car ownership will be cheaper if one doesn’t keep a driver. However the point is that we need to compare the similar deliverables — chauffeur driven 5 Lakh (Swift Dzire) type car.

At INR 16km rate, Uber/Ola will turn out to be more expensive than owning a car. So keep Ubering till they reach that point 🙂
Also The Times of India published the following graphical version of this sheet in the newspaper today:

uber

Let me know your feedback!

Note: The views and opinions expressed are solely those of the author and does not necessarily reflect the views held by Inc42, its creators or employees. Inc42 is not responsible for the accuracy of any of the information supplied by guest bloggers.

Author

Deepak Abbot

Community

Deepak Abbot heads Mobile Growth at Times Internet. He has previously worked with companies like Paytm, Reliance Entertainment Digital, Zapak & Satyam computers. He writes about Mobile Marketing, Product & Data Analytics

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