Could it be? So it might seem. According to a recent technology report, using a service such as Uber Pool during 2017 for weekly commuting in some large U.S. cities was cheaper than owning a car.
The report is in an annual presentation of technology trends. It was prepared by Mary Meeker of Kleiner Perkins Caufield & Byers, a venture capital firm, and presented at a technology conference on May 30, 2018.
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According to the presentation, in four of the five largest U.S. cities (NYC, Chicago, Washington, D.C., Log Angeles), using Uber Pool for daily commuting was cheaper than owning a car. Dallas, being so spread out, was an exception: car ownership is cheaper than Uber Pool.
The entire presentation, which covered many aspects of technology and internet trends. This slide deck, and the specific one on Uber Pool vs. personal car for commuting is no longer available.
Yes, things are changing, and continue to do so
It would be hard to argue that things are not changing. The changes in technology in recent years has never ceased to interrupt, overturn, and upset industries and businesses. As mentioned in Does The Private Automobile Have A Future?, the effects on many sectors of the economy are impacted by technological or human behavioral changes in another area.
But
It should be pointed out that the venture capital company mentioned, Kleiner Perkins Caufield & Byers, was and may still be an investor in Uber, as well as many other technology companies. KPCB invested in Uber in 2014.
KPBC has invested in over 850 companies.
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Words
So, a venture capital company puts out a report that using a company they are major investors in is a cheaper alternative for consumers. What does this tell us?
Impossible To Say
It is impossible to say how or if a company’s press report is affected by their financial investment. But it is something to know about. While several media outlets reported on the presentation, none mentioned the venture capital’s investment in Uber when discussing the findings.
Other findings
Actually, there have been numerous reports over the past few years that came to a similar question about ride sharing vs. car ownership. It all depends on many factors. The costs of car ownership, insurance, fuel, maintenance, repairs, parking, traffic tickets, etc., all are major factors. Distance needed for commuting, time commuting, etc., all complicate calculating the analysis one needs to do to make a firm determination of where the break-even point is.
According to the author of one report, the major determinant is the number of miles driven per year. You can see the author’s calculations here.
What do you think? Have you ditched your car for Uber, Lyft or some other ride sharing service? To send feedback, see the Contact page.
Illustration of Mexican warrior, from “Historia de las Indias de Nueva-España y islas de Tierra Firme … La publica con un atlas, notas, y ilustraciones J. F. Ramirez, etc” 1867. In the British Library.
The Sykes-Picot map, 1916. It was in correspondence from French ambassador Paul Cambon to U.K. foreign secretary Sir Edward Grey, May 9, 1916.
The Rosetta Stone was discovered in 1799 by French forces in Egypt. It came into British hands in 1801 when they defeated the French in Egypt. It resides in the British Museum and is most-visited object there. It was created in 196 BC during the the reign of King Ptolemy V.
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