Uber cheaper than rental car?

Frits Pieper
23 Mar 2015

Will you be able to rent a car through Uber in the future?

Uber has been growing rapidly lately and has been in the news a lot for the impact it has had on the taxi industry. Our Company Uber offers cars in such a 52 countries from all over the world. Uber connects its customers through a efficient mobile app with private drivers, but also official taxi drivers. But will Uber be more attractive than renting a car in the future?

What is Uber and how does it work?

In 2009, the company founded in San Francisco with their services for residents of that city. At that time, people could only use a limousine service. They worked on the same principle as now: people could rent a limousine via an app. The ride was paid for by credit card and customers could rate their driver. In July 2012 could one in London for the first time also use the service and later that year in December Uber also came to Amsterdam, The Hague en Rotterdam. Meanwhile, Uber is still growing and has already active worldwide.

Uber San Francisco

Uber Launches in San Francisco

Uber only works with private drivers who transport Uber passengers with their car. Uber has its own drivers, each with their own car. There are a number of requirements that an Uber driver must meet: the driver must at least 21 years old to be and to be in possession of a 4-door carIn addition to these requirements, the car may not be older than 10 years.

Uber is financially interesting for people without a car

Uber has been active in the Netherlands for a few years now and is also becoming increasingly popular compared to public transport. The reason that Uber is so popular is because it has an average of about 50% cheaper than taking a taxi. Moreover, you have the same advantages. It is easy, safe and affordable. With Uber, a car is at your door just as quickly as when ordering a taxi. That is why Uber is a great alternative to taxi and even public transport.

Uber's Impact on Transportation

The Netherlands has approximately 8 million passenger cars that can actually be used by one person. In that respect, Uber offers a solution: cars are used more efficiently, which theoretically means that fewer cars are needed. This should lead to a cleaner environment, less traffic jams and additional employment.

Whether this will actually be the case remains to be seen: in a number of countries Uber drivers have been on strike who claim that they can barely make ends meet with the money they earn from driving around in their own car. Furthermore, it is questionable to what extent people will be less inclined to buy a car if they can afford it financially.

Is Uber also suitable for renting cars?

Uber is currently focused on transporting people from point A to B. Testing is already underway in America with the transport of parcels by drivers with your own car. But is Uber also interesting?Fiat Panda for Uber for people who want to use a car with or without a driver for a whole day?

If we use the compare with rental prices for a whole day that will be difficult. The cheapest car at Adrem Limburg, the class A, costs € 18,50 per day, including insurance. These prices seem too low for Uber to enter this market. This is because there two parties have to earn from: Uber itself and the car owners.

However, there are already initiatives such as Snappcar en Mywheels which shows that renting a car from a car rental company is not always cheaper. The prices of some cars on Snappcar can sometimes be cheaper because the car owners see it as a nice extra income, without having to live from it. Just keep in mind that it is often a bit older cars goes, unlike the cars you can rent from car rental companies.

Read more about one overview of other ride-sharing and car-sharing services.

Do you think the rise of Uber is changing the automotive landscape quickly? Let us know below!

3 comments

  1. tanvir on March 27, 2015 at 14:04 pm

    Uber is great. About time the taxi market was turned upside down. And I don't think you'll be able to rent cars with Uber in the future. You will be able to pay more easily, just like with taxis. I can see that happening.

  2. Maarten on April 10, 2015 at 13:29 am

    ridiculous that uber just ignores the rules. the taxi industry is going to ruin because of this. i think if they also start renting cars you can pack your bags!

  3. Theoritics on October 26, 2017 at 11:03 PM

    I've been hearing the name Uber a lot lately. I don't have any experience with it myself (yet), but I always hear positive things from friends and family who have used it. Greetings, Samantha

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