Do ola / uber make more sense with rising fuel prices

Since March 2020, I'm doing work from home and my travel is totally restricted to running errands locally.

BHPian fazayal recently shared this with other enthusiasts.

We are seeing a historic rise in price of fuel for past few months now. So with the rise in fuel prices, is it making more sense to use cab aggregator apps like Ola / Uber or have the prices of Ola / Uber now increased much more and it makes more sense to travel in your own car?

Would love to hear your experiences, opinions and rationale.

Since March 2020, I'm doing work from home and my travel totally restricted to running errands locally for past few months with a rare longish trip in between which I do in my car. Hence I don't have visibility or experience of Ola / Uber in recent times.

Here's what BHPian SS8939 had to say on the matter:

Given that fuel is a big expense for cabs, isn't it fair to expect a corresponding increase in cab fares as well?

Also, given the strange times we live in now, an argument can be made that private vehicles are a safer option as they reduce exposure to any new people outside of your existing "bubble".

Here's what BHPian vigsom had to say on the matter:

Ola/Uber, in my view, always made sense even in non-pandemic times. Yes, using taxis in the current times is a personal choice, but I don't find anything wrong in using them even in the pandemic. They're generally very clean. Yes, in the current WFH model, and with usage of a car next to Nil, investing in a new car can be debated.

I was just going through my trip history in 2018 and found that I was paying a mere INR13 a km for a 25 km ride in Delhi that I had undertaken 14 days in a row. This was by a car of the Etios / Xcent / Dzire class.

If you do your math for Total Cost of Ownership (TCO) of a personal car of the same class (Capital + Fuel + Maintenance + Insurance + Tolls minus sale proceeds), am sure it will exceed INR13 a km. This, despite the liberal fuel and maintenance allowances plus tax benefits for cars bought under lease plans, where inflated bills are the order of the day.

There is a rise, and here is an example. In Jun 2018, I travelled from Hauz Khas Block K to Chander Nagar Gurugram, a 25km ride, and my trip cost for a trip commencing 0700 - 0715hrs would typically be INR 310-320. Today, the same trip for the same commencement time costs INR 375.

Here's what BHPian Dr.AD had to say on the matter:

With rising fuel prices, the costs of Ola / Uber are also increasing. But even then, purely financially speaking, Ola / Uber always makes sense over the Total Cost of Ownership of owning car. There is no two ways about it, financially.

Where owning personal car makes sense is for non-financial reasons such as you just love to own a car and drive it around just because you love driving (most of us here fit in this category), and/or for doing long road trips where Ola / Uber is of no use, and/or for the 24x7 availability of your own car, and/or the perceived safety of your own car in the pandemic times. These are the reasons one would choose to own a car. Not financial reasons!

I think even today, with increased prices of cabs and increased constraints, it still makes sense to use the cabs than owning a car from purely financial point of view. In fact, even car prices are increasing with an alarming rate! So owning a car is still far more expensive than just using a cab.

Here's what BHPian landcruiser123 had to say on the matter:

I'm a firm believer that one's primary car can't be replaced. The convenience of having your own car is unbeatable. If driving has dropped, it makes sense to let go of the second/third/fourth car and maybe replace it with a simple scooter for nearby errands.

It has happened twice that my dad had an international flight to catch on the day of a bandh. No taxi or bus would operate on those days. Living in south Bangalore, I've had to drive him 50km (one-way) to the airport.

Also, when he used to take the airport shuttle, I'd pick/drop him at a nearby bus stop at late night/early mornings. The ola / uber between the airport & home was 4x the price of the Volvo bus.

Needless to say, there are too many instances where having the convenience of a car is unbeatable. Once you get used to it, it becomes too hard to depend on someone else for transport unless you have major changes like retirement with no hectic schedule.

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