Own or Uber? Is owning a Toyota Corolla hybrid cheaper than e-hailing?

Over the last decade or so, personal mobility has morphed and changed. Every year, the percentage of the population who consider purchasing a vehicle decreases, opting for alternatives to the traditional vehicle ownership model. This is mostly due to the rising costs of vehicle ownership and the availability of the alternative - e-hailing. 

Related: Toyota Corolla 1.8 Hybrid XR (2024) Long-term Test Review Introduction

E-hailing services such as Uber, Bolt, DiDi, and the likes have negated the necessity of owning a vehicle. It's no secret that public transport in South Africa is an issue, forcing more of the public to purchase a vehicle for their own mobility needs, but it is here where e-hailing has come into its own.

The E-Hailing Principle

Smartphones, more affordable internet, and widespread coverage have changed the way that we do things, and it's no different on the personal mobility front. E-hailing apps allow you to hail a taxi service as and when you require it from the convenience of a smartphone application. Independent contractors then lobby for your business and offer to transport you to your destination from wherever you may be. You don't have to share the transportation with anyone but the driver, and don't have to make your own way to a collection point or depot. It is rather convenient.

Another selling point is that this means that you don't have to own a motor vehicle, worrying about parking, maintenance, or the ongoing running costs associated with vehicle ownership. Instead, you simply and literally pay-as-you-go.

Ownership Cost Experiment

The Toyota Corolla 1.8 XR Hybrid in our long-term fleet got us thinking about the costs of owning and running a fuel-efficient vehicle versus e-hailing, as a solution for personal mobility.

Fuel consumption

Cars like the Corolla are capable of returning rather amazing fuel consumption figures if driven sensibly. We managed to record an average fuel consumption of 2.7 l/100km in a recent 18km trip from Parktown in Johannesburg, to Roodepoort in the West Rand, a typical daily commute for many. We made this trip in peak hours with the vehicle in Eco mode, and there was no definite attempt to hyper-mile the car. Instead, we just drove sensibly and planned ahead, sticking to the speed limit but remaining with traffic as well. The stop-start nature of the journey helped the self-charging system in the Corolla remain in effect for much of the driving, calling on the electric drive rather than the petrol engine. Hybrids are inherently more fuel efficient in traffic and tend to use more fuel when hitting the highways and travelling at higher speeds.

Doing the maths, we calculated that we used only 0.504-litres of fuel for that trip. Calculating the fuel cost for that trip resulted in a total of R11.11 using a petrol price of R22.86 /litre for 95 Premium. This is then R22.22 per day for a round trip (to and from your work).

Using a 23 day work month as an example, this is only R511.06 in fuel every month, to and from work. 

True ownership costs

Paying for the fuel is one thing, but there are other costs involved in owning a car. The Toyota Corolla 1.8 XR Hybrid carries a retail price of R570 200 and most buyers will look at financing their purchase. 

On a standard finance agreement taken over a period of 72 months, with a 10% deposit of R57 020, no residual or balloon, and an effective interest rate calculated at prime +2 for a rate of 13.75%, this Corolla model will cost you R10 506 per month. You can head over to our Car Finance Calculator to enter your specifics and do your own cost comparison.

If we divide that by the same 23-work day month, it equates to R456 /day, or R228 per trip. It's R350.20 /day for a 30-day month if you're counting the days that you're not earning money.

Insurance is another cost one has to factor in, as all new cars are required to be comprehensively insured. We used a rough cost here as individual risk profiles vary greatly. We worked off of a R600 pm premium and divided that by our work days in the month. This comes to R26.08 /day or R13.04 per trip. If you divide it by the full 30 days, it's R20 /day.

Maintenance doesn't need to be factored into the costs as a new Toyota Corolla 1.8 XR Hybrid comes with a 3-year/100 000 km warranty (8-year/195 000 km battery warranty) and a 6 service/90 000 km service plan as standard.

Total Costs and Cost Comparison

Sticking with the 23 day work month, the figures for each trip look as follows:

For a total trip cost of R265.19 each way. This is a daily cost of R530.38.

Compare that with the rates charged by Uber, for instance, and it paints a rather interesting picture.

The cheapest Uber fare for the same trip comes in at R135 for an Uber Go. A comparable fare is that in the Uber Comfort, which uses newer cars with more space. Here, you're looking at a cost of R204 for that very same trip. UberXL, the group offering, costs R181, while the common UberX is R167.

Even doubling these to make it a return trip works out more affordable than running the Corolla and including all the costs of ownership.

Conclusion

It seems, then, that e-hailing is the more cost-effective mobility solution. Naturally, this calculation assumes that you're purchasing the vehicle at its full price and not putting down a larger deposit or trading in a can of greater value, which would bring down these daily costs.

It seems weird that a publication that helps you buy and sell cars suggests that not owning a car is the preferred solution to mobility, but these are the facts, and we don't want to ignore them because they don't suit our narrative.

While e-hailing may be a feasible solution to mobility, the vehicle ownership experience is more than just getting to work and back. It's taking random, spontaneous trips. It's stopping on the way home on a whim because you suddenly get the urge to visit that coffee shop you keep forgetting about. It's holiday adventures and weekends away. It's the ability to be the true master of your own destiny and to command a vehicle in a manner that best suits your mood.