Who Doesn’t Want a Free Car?
Spoiler alert, we're throwing away brand new cars. The old saying is money talks. Perhaps saving money isn’t quite as loud or sounds as much fun, but then to have money to talk in the first place, surely you have to save first?
We’re in 2022. Over the last 40 years the way we work and travel has changed immensely. No one worked from home (or had the option to) a few years ago, no one took a taxi every day to work unless they were super rich. For holidays and vacations, we would go to the travel agent or airline and book a flight. Nowadays the thought of booking a flight without seeing other options / pricing seems almost crazy. The same for hotels. We decide where we are going and look at the cheapest, best hotel on offer or other sweet deal. We, as the consumer, have the power to choose.
And yet in 2022, the same can’t be said for rideshares or ridehails or however you like to call your on-demand ride. It’s almost like we go back in time, stick with our regular old favorite and pay the price. We completely lose all notion that we are living in 2022 and that life has moved on. So what does that mean? Quite simply we over pay. We lose money.
25% of the American population took at least one ride share last month and The ride-sharing market value is projected to reach an estimated $220 billion by 2025. In fact there are many many statistics about ridesharing but we won’t go down that path. Let’s keep it simple and honest. If you ride a little or a lot the savings really add up.
So let’s assume you take a ride to and from work every day. If you live in NYC the average ride cost according to Statista.com is over $18. In a year, that would add up about $9,000 just for commuting (excluding weekends and going back out at night). Assuming you’re not a hermit, we can safely add another $2,000 for social rides.
And this is where the money really starts to talk. Data from Obi (a ride comparison app) shows that on average a consumer can save upwards of 25% on a ride by shopping around. So that’s $2,250 of savings in just one year. Over 5 years, that’s $13,750. Over 10 years, that $27,500 of savings. Or to put it another way, a brand new Ford F-150. In just a few years, you could save enough to buy a brand new car. That's how much we are overpaying as a consumer.
And all you have to do is compare prices before you ride. And even if you’re not a daily rider, over 10 years you’ll still save a small fortune.
But does shopping around mean you take inferior rides? Absolutely not. The truth is, many, if not most drivers, drive for multiple companies these days. And so you’re actually getting quoted different prices by different companies for exactly the same car and driver. So why would you pay for the more expensive option? More expensive doesn’t mean the driver earns more either as commission rates vary between companies.
Still not sure? Here’s a real life example happening right here, right now. A ride from The Met Opera in NYC to JFK airport. For a basic ride, the price differential is over $16.
And another - from SFO airport to the Botanical Gardens, it’s a $20 difference between the cheapest and the next ride provider.
So yes, the savings are real, yes the money adds up. And yes, we are in 2022, so it’s time to shop around before you buy. So next time you ride, open the free Obi app. It will show you in real time all the prices. You may be right and your regular provider is the cheapest that day, but we guarantee on many days they won’t be and especially during times of peak demand, low supply and surge pricing, you’ll never look back. So take back control of your rides.