Share

How ditching your car for Uber could save you money

Johannesburg - Drivers can expected to save an average of as much as R 14 000 annually by ditching their vehicles and opting to use the Uber service, according to online savings service MyTreasury.co.za. 

My Treasury - an independent savings optimiser that matches savers with the best bank account to maximise savings over time - took into account the depreciation of a car, insurance, parking, cleaning, licences, fines, tolls, petrol and of course the cost of taking an Uber to arrive at the total average amount. 

READ: Uber goes green in Cape Town

The catch is that the longer the commute, the higher the cost of an Uber.  Hence, My Treasury has said that ditching a car for Uber is better suited to those who have shorter commutes to work.  

 “If like many South Africans, you drive less than 50km a day, using an Uber will save you money,” Michael Kransdorff, chief economist and co-founder of MyTreasury.co.za said.

Drivers travelling 40 km per day or 14 575 km per year, would save as much as R14 000 per year by switching to Uber while drivers with a shorter travel distance can expect to save even more.

According to MyTreasury.co.za, calculations were based on a Toyota Corolla, one of the most common used by UberX drivers. A Toyota Corolla retails at R300 900 for the new model.  

READ: Uber targets 'disrupting itself', says Alon Lits

The car’s depreciation and financing costs are around R61 000 per year.

The average insurance was quoted at R1 500 per month or R18 000 per year for comprehensive insurance with a minimal excess.

Petrol costs depend on your driving patterns, but these costs worked out to be a standard of R27 000 a year for the average South African driver.

“Insurance, parking, cleaning and licenses are your fixed vehicle costs,” Kransdorff said. 

READ: Uber pilots dashcams, panic buttons in SA

The bane of a driver’s life is parking fees, which were estimated at R1 560 a year. Car washes are factored in at an average of R150, meaning it costs around R1 800 a year. Meanwhile, licences, tolls and fines typically amount to R2 000 per year, said My Treasury.

Kransdorff told Fin24 that the only downfall of ditch your car for Uber would be the instant access to a car. 

“One would need to order an Uber which takes a couple of minutes. It could also happen that during peak times a vehicle may not be available and that you may be required to wait,” he said.

“Also if you want to go on a long journey and then it’s useful to have a car but you could always rent for a short time,” Kransdorff told Fin24.

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.93
-0.2%
Rand - Pound
23.90
-0.0%
Rand - Euro
20.44
+0.1%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.1%
Platinum
906.59
+1.1%
Palladium
1,012.66
+1.1%
Gold
2,221.55
+1.2%
Silver
24.87
+0.9%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.9%
Resource 10
57,251
+2.9%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders