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Vehicle ownership vs Taxis

What's cheaper and more convenient? Buying a vehicle and running it (service, fuel, parking, driving in traffic) or using something like pickme or uber?


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Avatar for Vachintha Piyadasa
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Vachintha Piyadasa

Considering the expenses and the current traffic situation of the country, I believe the cheaper and most efficient way to travel is via taxis. However it's still a question as to how comfortable this is.

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Shevantha Perera

for uber free registration 25% of hire will be paid for uber on demands time and promotion you will get more earnings ob pickme rs.10,000/- for registration 10%of hire will be deducted to pickme fixed rates

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indi YAMU STAFF

I think cabs. In CMB you also have to factor in parking cost. Then of course lease, petrol and maintenance. Cabs plus bus is best for me

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Gehan

In the short term, sure cabs I guess. But you're looking at an average of say Rs. 500 one way, depending on distance to work. Average out over a month, you're looking at roughly 24k a month.

If you're taking the bus, definitely cost effective, but at a major hit to convenience. Bus routes, quality of transport etc are just awful in Sri Lanka.

In the long term, a decent 1.2l car provides far more convenience and long term cost benefits over cabs, much like owning your own house is probably cheaper and cost effective long term than staying on rent.

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fruit loop

this.

Avatar for Yoosuf
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Yoosuf

This is something I've thought over recently too, and actually if you think about it on the long term using your personal fuel efficient car is cheaper if your happy with the basics, but for those who require driver's and expensive insurance etc, then the taxi's is actually cheaper.
Cost of Suzuki Alto (660cc) - Rs .2.4 mil (or more depending on model and whether leased or cash sale etc)
Avg distance run per day - 40 km (5 days a week)
Fuel cost - 128/l
Est Fuel economy - 15 kmpl

3rd party Insurance, Revenue License & Smoke test - Est 10000/year
Servicing 4 times a year - Est Rs. 40000
Which comes to around - Rs. 207/day

Avg fuel cost per day - Rs. 342
Min cost per day - Rs. 549
Cost per KM - Rs.13.725

If you have a private driver,
Min Monthly Salary - Rs. 20,000
Cost per KM increases by Rs. 25
Total cost per KM - Rs. 38.725

If you have full insurance,
Est Annual Cost - Rs. 40,000
Cost per KM increases by Rs. 4.16
Total cost per KM - Rs. 17.89

For those who have a driver with full insurance,
Total cost per KM - Rs. 42.88

* This is also assuming there is no depreciation value for the car over 10 years period and it could be sold for the same figures which it was initially bought for

Cost for a scooter - Rs. 250,000
Est fuel economy - 40 kmpl (could be less depending on riding style)
3rd party insurance, revenue license & Smoke test - R.s 5000
Servicing 4 times a year - Rs. 10000

Avg fuel cost per day - Rs. 128
Depreciation cost per day** - Rs.104
Min cost per day - Rs. 294.6
Cost per KM - Rs. 7.36

**Over a 10 year period, assuming the scooter is maintained well the resale value could be around 45% of its initial purchase price


Therefore to sum up, assuming you buy a fuel efficient gasoline car with a good resale value and am happy to do with 3rd party insurance and drive yourself around then using your own ride is certainly cheaper than hiring a trishaw or tuk.
But if you want full insurance, then its still cheaper cheaper to drive your own car. However if you have a private driver without full insurance, then its certainly cheaper to get a tuk and save Rs. 5.725/km and save Rs.549,600 in 10 years running 40km 5 days a week

But if you are someone who needs full insurance and a private driver/chauffeur, then its also likely that you do not use tuk tuks and consider Uber or PickMe cars then actually its cheaper to have your own vehicle. As Uber rates are subject to surge and overall as there isn't any/much difference in cost its therefore much better to go around in your own vehicle rather than searching for taxi's. However as this analysis was on the assumption that you have a fuel efficient car which doesn't require luxury tax, if you have a more expensive ride then the cost would increase even more which then could also exceed the amount you spend on taxi's, thereby making Uber and Pickme a cheaper option

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