1) UberX is covered by personal insurance, drives a lot of other people around (hence the cost is shared over many rides).
Your personal car also is covered by personal insurance but drives only "you" around.
Of course, UberX has an insurance advantage!
2) UberX driver is doing it part time, so he/she certainly has a lower paying job (~minimum minimum wage) or no job at all, at which point, the UberX driver's hourly rate is wayyy less than that of a Silicon Valley techie.
3) Since an UberX waiting for a passenger is probably idling somewhere or is driving around the high density of pickups area, the vehicle, technically is not required to pay for parking at any point, but if you driver your own car, you have to leave it somewhere, and pay for the parking (at work, and in SF, at home too).
Bottomline: UberX can be (strike that), will be cheaper than owning and operating own car once Uber + autonomous vehicle becomes a reality.
why?
1) Insurance: Less human error --> Lower premium
2) No need to pay a driver: 50% of UberX price goes to pay the driver (assuming 30% costs, 20% Uber commission). If Uber just keeps that 20% of commission, and costs remain the same, the fares can go down an another 50%!!!!
3) More people moving to autonomous UberX will lead to increase in premiums for manually driven cars (Insurance company has to make profits!).
Until this Autonomous UberX happens, all other explanations of UberX is cheaper than driving, needs to be taken with a pinch of salt
1) UberX is covered by personal insurance, drives a lot of other people around (hence the cost is shared over many rides).
Your personal car also is covered by personal insurance but drives only "you" around.
Of course, UberX has an insurance advantage!
2) UberX driver is doing it part time, so he/she certainly has a lower paying job (~minimum minimum wage) or no job at all, at which point, the UberX driver's hourly rate is wayyy less than that of a Silicon Valley techie.
3) Since an UberX waiting for a passenger is probably idling somewhere or is driving around the high density of pickups area, the vehicle, technically is not required to pay for parking at any point, but if you driver your own car, you have to leave it somewhere, and pay for the parking (at work, and in SF, at home too).
Bottomline: UberX can be (strike that), will be cheaper than owning and operating own car once Uber + autonomous vehicle becomes a reality.
why?
1) Insurance: Less human error --> Lower premium
2) No need to pay a driver: 50% of UberX price goes to pay the driver (assuming 30% costs, 20% Uber commission). If Uber just keeps that 20% of commission, and costs remain the same, the fares can go down an another 50%!!!!
3) More people moving to autonomous UberX will lead to increase in premiums for manually driven cars (Insurance company has to make profits!).
Until this Autonomous UberX happens, all other explanations of UberX is cheaper than driving, needs to be taken with a pinch of salt