In fact, twice as much according to new research from the AAA Foundation for Traffic Safety. In their study, they found using ride-hailing services like Lyft and Uber as the primary mode of transportation ends up being far more expensive than traditional car ownership even with fuel, insurance, parking and the vehicle itself included. An earlier study by AAA found that the average new car costs an owner $8,469 annually, or $706 per month based on 15,000 miles driven.
Their study concluded the average cost of traditional car ownership is $7321 for 10,841 miles per year and a total of $10,049 with parking charges. For the same distance traveled, ride-hailing services would average to $20,118 per year.The averages show ride-hailing service cost twice as much as owning a vehicle even with all the additional costs factored in. Parking is one area that can be a major factor when it comes to cost. The AAA estimates parking costs anywhere from $706 (Phoenix) to $8,088 (New York) per year. "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." In their study, AAA compared the data of 20 major U.S. cities based on the average number of miles traveled by drivers. Their findings include annual ride-hailing would cost $17,339 in Los Angeles, $21,397 in New York City, and $21,093 in Washington, D.C. Dallas ride-hailing had the lowest cost at $16,944, while Boston had the highest cost at $27,545.