Reading the self driving car threads has me thinking about how not owning a car would change the way we pay for transportation and wondering how that might change the way we use transportation. This change could occur with a switch to using uber, taxis, and public transportation also.
I ran to the grocery store this morning. It is two miles from house. Out of curiosity I checked the uber cost to get there. $5.49, so basically $11 for the trip. Would I have been more hesitant to run this errand if I had to shell out $11? As frugal as I am the answer is probably yes.
Now I realize much of the cost of the trip currently is already prepaid in the ownership of the car and the insurance for the car. (The following example in no way is my figures...I buy my cars for cash and keep them for many, many years). Think about it...someone with a $300 per month car payment is paying $10 per day for the car, add in $100 per month for insurance and that gets another $3 or $13 per day even if the car just sits there. Factor in gas and maintenance and well you see where this is going. Still I think paying at the point of the trip would cause me to consider little errands like this more carefully.
I ran to the grocery store this morning. It is two miles from house. Out of curiosity I checked the uber cost to get there. $5.49, so basically $11 for the trip. Would I have been more hesitant to run this errand if I had to shell out $11? As frugal as I am the answer is probably yes.
Now I realize much of the cost of the trip currently is already prepaid in the ownership of the car and the insurance for the car. (The following example in no way is my figures...I buy my cars for cash and keep them for many, many years). Think about it...someone with a $300 per month car payment is paying $10 per day for the car, add in $100 per month for insurance and that gets another $3 or $13 per day even if the car just sits there. Factor in gas and maintenance and well you see where this is going. Still I think paying at the point of the trip would cause me to consider little errands like this more carefully.