Breakeven km = Fixed cost of car ownership / (variable cost of Ubering – variable cost of car ownership)The results determined that if you drive less than 50 km per day, in total, or less than 1,500 km per month, using Uber every day will save you money. If you drive more, however, it’s better to stick with your own car. Based on the numbers provided by the Road Traffic Management Corporation, the average South African drives around 40 km per day. If you fall into that bracket, switching to Uber could save you as much as R14 000 per year. The real winners are those who live close to their work. Uber doesn’t offer discounted rates on long distance journeys, and the driver-partners are city based. The Uber drivers don’t use the Uber app in different cities. All trips, no matter the destination, are calculated by the base fare, per minute and per km. It would be up to the driver-partner to accept a long distance trip, considering it would be at the driver’s expense. They would then have to return back to the city they operate in. A long distance trip could really put a hole in your finances, then. In this regard, owning your own car would certainly work in your favour.
“We believe that riders and drivers should have certainty and control around prices so that they can make informed choices about when and how to use Uber,” says Allenberg. “That’s why we make it easy for riders to obtain a fare estimate upfront, both in the app and on the city website, and provide a complete electronic receipt at the end of every trip.”Uber clients can see the fare estimate before they request a trip, and receive an electronic receipt with every piece of the fare broken out clearly.