Yahoo Finance Taxi vs. Ride-Share: Which Is Better for Your Wallet?
For the last 10 years, ride-share services like Uber and Lyft have made it easy for those on the move to quickly get a ride through their apps. The widespread use and availability of ride-shares have also meant many will opt for a ride-share over a taxi in places like airports, for example.
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Are you really saving more money taking a ride-share over a taxi? Let’s look at some of the cost variables for riding and other considerations to factor in when choosing a car service.
Cost Variables for Riding
Here are a few cost variables you’ll need to factor in to determine if you’ll take a taxi or ride-share service.
Location
Depending on your location and the destination you need to get to, taxi or ride-share fares may be more or less expensive.
Let’s use the example that you need to get to the airport. According to The Los Angeles Times, many cab companies will charge flat rates for airport trips. An example is Bell Cab charging $38 for trips between West Hollywood and Los Angeles International Airport (LAX).
It’s often easier to find both taxi and ride-share services in major cities like New York, but a bit more difficult for those who live in suburban areas. You may need to call ahead of time to schedule a taxi to pick you up or schedule a pick-up time on a ride-share app if you live in an area where there’s less car availability.
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Distance and Miles Traveled
A 2022 Lifewire article said taxis charge per mile when they are moving, but charge per minute while idling. Ride-share services like Uber charge per mile and per minute, with a few exceptions, whether the car is moving or idling.
Traveling on Holidays
Using a ride-share on holidays can be significantly more expensive than taking a taxi. Ride-shares will charge what is known as surge pricing: higher fares due to increased customer demand.
The good news is you can usually view a ride estimate on both Uber and Lyft’s apps. If you find surge pricing is too expensive, consider switching to a competing app to see if prices have dropped or waiting a few minutes to see if prices decline. Those who have the number for a local authorized cab service — as a general pro tip, this is helpful to have handy when visiting another city — may decide to call for a cab. Taxis usually rely on fixed fare schedules, meaning passengers don’t have to worry about surge pricing to get to their destination.
Tips and Payment
Both cab drivers and ride-share drivers do expect tips from passengers. Apps like Lyft and Uber provide passengers with the ability to pick a tip percentage or a custom percentage amount. The etiquette for tipping cab drivers is usually between 15% to 20%, according to AARP.
If you decide to take a cab, ask ahead of time whether they take credit cards or cash. Make sure to bring enough cash with you to cover the trip and tip. Ride-share apps like Uber and Lyft have your payment information on file, so there’s generally no need to worry about making your payment at the end of the trip. Plus, ride-shares will email you a copy of your receipt to have on file breaking down the cost of the trip.
How Can I Save When Choosing a Car Service?
You can save extra money if you decide to take a ride-share. Ride-shares usually have a range of cars available at different price points for passengers.
For example, Uber usually recommends UberX as its most economical choice. Uber Black and Uber Lux are also available as premium rides in luxury cars, but their price points are significantly more expensive. If you wanted to travel 15 miles in the Los Angeles area before 9 a.m., for example, taking an Uber Black would cost around $74. This compares to a ride in Uber X which would price out to around $33. Both Uber and Lyft also offer shared car options. These rides are affordable and allow several passengers to be picked up and taken to their destinations.
Ultimately, finding a cheaper ride-share or cab depends on the city you’re in. Ride-shares are typically the most economical choice in most major U.S. cities. They can often be found at cheaper rates and are generally more plentiful than taxis. Ride-shares also allow passengers to see their driver’s rating and car model to be sure they are riding in a safe vehicle. Passengers enjoy peace of mind in knowing their drivers have been vetted to prioritize an exceptional customer experience to and from their destination of choice.
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This article originally appeared on GOBankingRates.com: Taxi vs. Ride-Share: Which Is Better for Your Wallet?
