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Ride-Hailing Costs Twice as Much as Car Ownership, AAA Finds

The average cost to own and operate a vehicle is $7,321 for 10,841 miles per year not including parking charges, and $10,049 with parking charges.

August 27, 2018
Ride-Hailing Costs Twice as Much as Car Ownership, AAA Finds

AAA compared how much you will pay for ride-hailing services and owning a vehicle in 20 major U.S. cities.

Photo courtesy of Uber.

1 min to read


The cost of exclusively using ride-hailing services in an urban setting would cost about twice as much as owning a vehicle, according to new research from the AAA Foundation for Traffic Safety.

The average cost to own and operate a vehicle is $7,321 for 10,841 miles per year not including parking charges, and $10,049 with parking charges. Ride-hailing services cost $20,118 per year for the same distance. This equals more than twice the cost of owning a vehicle, even when factoring in additional costs of fuel, insurance, parking and the vehicle itself.

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"Whether you own a vehicle or not, ride-hailing services are a convenient transportation option," said John Nielsen, managing director of automotive engineering and repair. "However, with the average American city-dweller driving nearly 11,000 miles per year, a personal vehicle is still the more cost-effective choice."

AAA compared the data of 20 major U.S. cities based on the average number of miles traveled drivers. Annual ride-hailing would cost $17,339 in Los Angeles, $21,397 in New York City, and $21,093 in Washington, D.C. Of the cities studied, Dallas ride-hailing had the lowest cost at $16,944, while Boston had the highest cost at $27,545.

Ride-hailing can work for those who travel a limited number of miles annually or have mobility issues that prevent them from driving a personal vehicle, Nielsen said.

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