This is an archived article that was published on sltrib.com in 2014, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.
Ridesharing companies such as Lyft and Uber hope their services someday will be cheaper than owning a car. But that's not the case yet in Salt Lake City, or any of the 49 other major U.S. cities included in a new study.
The NerdWallet financial website figures the typical cost to own and operate a car — including car payments, insurance, gasoline and more — in Utah's capital is $11,372 a year.
It estimates that relying exclusively on Lyft or Uber, even for short trips to the grocery store, would cost $18,790 — 65 percent more.
But it says Lyft and Uber could be less expensive than owning a car for those Salt Lakers who make fewer than 13 trips a week in their own car. It said the typical U.S. driver makes more than that — 3.02 trips each day — according to the Federal Highway Administration.
"In every city we analyzed, owning and maintaining a car is less expensive than taking Lyft and UberX for every trip," the study said. "In some cities, however, costs are relatively close. For example, in Miami it would cost about $3,000 more to ditch your car and exclusively use Lyft."
It added that it found rates in the Salt Lake City area for Lyft and UberX — a lower-cost version of the luxury-car Uber — are equal. In the 50 cities surveyed, Lyft had cheaper rates in 29 cities, UberX had the best deal in 15, and the services have the same prices in six.
Lyft and Uber have been controversial in Utah. Salt Lake City issued hefty $6,500 tickets to several of their drivers — after warnings — considering them essentially unlicensed taxi services. No other cities have followed suit.
The companies have vowed to cover the fines for the drivers if needed and to fight them in court, contending ridesharing is different than a taxi service and not covered by current law.
The Salt Lake City Council is studying legalizing the ride services and what conditions it might put on them.
The companies assert that they essentially are a high-tech way to find a friend with a car for a ride — for a price.
Lyft and Uber provide smartphone apps to connect people who want a ride with nearby drivers who use their own cars. Riders can see how others have rated the driver, what they will charge and when they will arrive. Drivers in turn can see how colleagues have rated the rider. All payments are made through the online app.
The companies do background checks on drivers and reject those with poor driving records or serious criminal backgrounds. They provide $1 million in insurance. The companies keep 20 percent of the fare, but say the driver is the one providing the service.