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Old 2nd July 2015, 16:38   #46
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Default Re: Economics of car ownership in light of the new services (Uber, Ola, Zoom)

We have 2 cars at home considering 5 members (mom dad wife son me). Although Uber / Ola hasn't replaced a car (we have had 2 cars for a while now), but it has replaced the need for a driver. Any time a driver is needed (e.g. a late night weekend party or a trip from western suburbs into south mumbai for a doctor appointment), we book one of the cabs.

Economics I have done (could be right or totally wrong!):
Driver salaries can go up to 15k including overtime, i.e. Rs 500 / day. Assuming a 100km run with 6 hours waiting, Ola would cost me around Rs 1800. My car would cost me (@Rs 8/km + Rs 500 driver) Rs 1300, i.e. an extra Rs 500. Even if I make 10 such trips a day the additional cost is Rs 5k which is still lesser than the 15k I pay for the driver.
Hence, no driver at my place!
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Old 2nd July 2015, 16:43   #47
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So many emergency need examples are just in mind. In reality what would you do when emergency strikes at home and you and the car are at office? Or will emergency happen only when you are home? Call cabs or such services are faster and better way.

And in rural / small town settings community sharing is already a practice as are so many jeep / ace options.

Last edited by sudev : 2nd July 2015 at 16:46.
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Old 2nd July 2015, 19:01   #48
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Default Re: Economics of car ownership in light of the new services (Uber, Ola, Zoom)

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Originally Posted by sudev View Post
So many emergency need examples are just in mind. In reality what would you do when emergency strikes at home and you and the car are at office? Or will emergency happen only when you are home? Call cabs or such services are faster and better way.

And in rural / small town settings community sharing is already a practice as are so many jeep / ace options.
+1.

On top of that, would it really be safe to drive while in physical and/or emotional distress in an emergency? Won't you rather let someone calmer and unattached do the driving while you gather your thoughts and tackle the emergency itself?

Worth a thought.
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Old 2nd July 2015, 19:07   #49
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Default Re: Economics of car ownership in light of the new services (Uber, Ola, Zoom)

This question pops up in almost everyone's mind these days. Should I not buy a car and just rely on the public transport and taxi services? Why should i spend money on buying and maintaining a car when my transport needs can be met otherwise.
But that is hardly the case.
1) First, there is no guarantee of service being available when you need it. Your car will always be there day and night, rain or shine but your taxi service may not be there. Even in Singpore and I had to wait for half an hour for taxi during rush hour and even after that we could not get one. All the lines in that route where busy.
2) You are using a shared resource the quality and effeciency of which is not 100% guaranteed. I have had experiences where 10 year old Indica have been sent as cabs. If that happens, you have the option to refuse boarding it and wait for another but how long can you wait and what is the guarantee?
3) You have lot of stuff which you use daily which is kept in the car like office ID cards etc. You will have to carry it always with you otherwise.
4) You can always plan impromptu trips based on your mood. If it is pleasant cloudy weather, you can just hop in your car and drive off. Even if you take a cab, it will go after dropping you and if the weather is bad etc. you have to suffer.

I think instead of being substitute, both are complimentary to each other. Use it where it fits best.
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Old 3rd July 2015, 00:51   #50
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Default Re: Economics of car ownership in light of the new services (Uber, Ola, Zoom)

The enthusiast in us would yearn to drive or travel in certain cars which appeal to us, most likely not the preferred model for the fleet operator ; and vice versa! The personal car market best sellers are rarely the most popular taxi models, operating costs and space alone don't make your drive (or ride) the most pleasurable
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Old 3rd July 2015, 08:38   #51
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Default Re: Economics of car ownership in light of the new services (Uber, Ola, Zoom)

Now this is a thread I would definitely want to put my 2 cents into.

I came back from abroad in Mar '15 and was told I would be sent onsite again in a month or two. I thought fine, I can definitely manage 2 months without a car (mind you I didn't have a 2 wheeler either). And to add to that, I got married the previous month.

So both me and my wife started using Ola and Taxi for Sure to complete our home-office-home commutes. It was expensive and we were spending upwards of 1.5k per week. Anyway, weekdays were fine. Cab availability was good.

The trouble started on weekends. If I booked a cab for the coming weekend beforehand, either the app would say no cabs available and reservation cannot be confirmed or the driver would ditch us at the last moment.

And this happened every weekend. The problem being we stayed a little away from the populated areas. Autos charged a flat 100/- to reach the main road (2kms away) from where the Volvo buses plied. Even getting groceries became challenging and bigbasket was the only hope.
Finally we bought a 2 wheeler and then a car.

The point of economics is fine, but if everyone had the same need, everyone would behave the same way. The freedom your own vehicle gives you is beyond compare. Example, I want to go for an ice cream late night, I rather kill my craving than book a cab.
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Old 3rd July 2015, 11:12   #52
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Default Re: Economics of car ownership in light of the new services (Uber, Ola, Zoom)

I love cars
I love to drive, and love long drives
I have sold my car (in Mar 2015), and rely on Uber, Ola, Zoom, Carzonrent.

Well, here in Tbhp most of us are real auto fans, and I am pretty sure that there won't be many takers for the idea of not-owning, or selling the car to depend on cabs/self-drive rentals.

Even I too would love to own cars, and did own as well. I had a 2003 model Santro, and again I bought a Fiesta in 2011 just because I loved the car after driving it (pre-owned, 2006 model).

The psychological factor of owning a car means freedom, flexibility etc. is true. There can be certain situations where a cab or self-drive can't fill in for our own car.

But keeping these situations in mind as rare cases, if you plan well and keep aside the feelings and emotions of owning a car, for some of us atleast, using cabs/self drives could make more sense.

The question of whether to own car(s), or depend on cabs/self-drive depends on one's usage pattern, in my opinion.

Below were my strong reasons to sell my car and depend completely on the cabs/self-drive services.

1. I do not drive daily. I do not take my car/bike to office daily (I use office bus/cab, or public transport). The reason being I do not like to drive in the bumper-to-bumper traffic in Bangalore, or any city, even if it means that the alternative means of transport takes little more time.

2. My drives are mostly on weekends either to some place within the city, or an ocassional trip to the local market, restaurant, friend's/relative's place.

3. On an average, once in 3 months an outstation trip - around 300-350 km one way.

4. Once in a year minimum, a longer trip of above 500 km one way.

Overall, my annual distance covered was 6000 km max.

With these usage patterns I was finding it difficult to justify the maintenance of 2 cars. I was anyway planning to sell Santro as I did not have enough parking space in Bangalore, and it was KL registered. So I used to keep Santro in Bangalore for 6 months, and 6 months in Kochi. But finally sold Santro in Nov 2014.

But then this thought lurked in my mind - why should I keep Fiesta just for the sake of keeping a car?? Do I really need that?

I had started using Uber and Ola for my city trips and found it good and reasonably priced. Well, how good and reliable is another story. But I use them keeping low expectations in mind (that anything can go wrong anytime, and they have terrible service), so that I don't expect too much from the cab services. But so far so good. Low weekend availability & surge pricing are few things I hate in them. But that's not a very big issue for me, and not strong enough reason to own a car.

I decided to sell Fiesta - anyways it was more than 3 years with me - and an aging model. So decided to sell it off, and rely on cabs/self-drives for the time being. I decided that if I find it absolutely necessary to own a car, then I will think about it after few months.

It has been 4 months and I am happy with the decision. I use Uber/Ola for travel within city and I use Zoomcar and Carzonrent for my outstaion drives. Both have been good so far.

Economics of owning a car and using cabs are discussed in the article shared in the first post of this thread.

As per my calculation, I used to spend (or my cost was) around 7.5K per month - fuel, insurance, service, depreciation etc.
So far using cab/self-drive rentals my expense is around 3K per month so far.

Again, it can vary from case-to-case, and there can't be one-rule-fits-all scene here.

My take is:
Own a car if you take it out daily (office/work) and drive around quite a bit otherwise as well, more than 1000 km a month
Use cab/self-drive if you don't drive big distances.
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Old 3rd July 2015, 12:32   #53
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Default Re: Economics of car ownership in light of the new services (Uber, Ola, Zoom)

Depending on Taxi + Self-drive will work if:
1. You use office provided transport for commute
2. You own a good motorcycle and use it for errands
3. You do not enjoy frequent late night drives etc.
4. You plan your long drives well in advance.

For the occasional getaway or occasion long drive, there's always Zoom.
For weekend shopping / outing within the city, there's always Ola.
For everything else, there is always your trusty motorcycle.

I was thinking on these lines when Zoom were renting out Nanos for Rs 19 an hour.
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Old 3rd July 2015, 13:50   #54
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Default Re: Economics of car ownership in light of the new services (Uber, Ola, Zoom)

This is a real good topic and I totally buy the debate on this impacting the 2nd car market to a big deal, but it could also delay the impulse in 1st car purchase as the convenience of radio taxis removes the immediate need.

Also from a costing perspective, drivers cost makes a big difference. A lot of my car loving friends (including me) buy luxury cars capable of delightful triple digit speeds and use them 95% in metros, peak hours (8 to 9 am and 7 to 9 pm) in bumper to bumper at an average of 15Km/hr and then resort to giving them to the drivers. The fuel cost + drivers cost, (leave aside depreciation and upkeep cost) is either equal or more to radio taxis. I have been doing it for over 12 months now, while my car is in the parking, I use the radio taxi, and the bills that I pay to Uber or Ola for my daily 50Km commute is equal to the fuel and driver cost I would have incurred for my car.

Last edited by cedricsg : 3rd July 2015 at 13:54. Reason: Do not wish the Quote
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Old 3rd July 2015, 14:07   #55
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Default Re: Economics of car ownership in light of the new services (Uber, Ola, Zoom)

I don't know about the economic but most app and other cabs tend to be smelly!! Probably because the drivers tend to live in the vehicles!!

I use cabs only as a last option.
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Old 3rd July 2015, 14:34   #56
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Default Re: Economics of car ownership in light of the new services (Uber, Ola, Zoom)

I look at these cab providers as an alternate to owning a second car, if you can't afford one or you just don't want one. When the Nano AT rolled out, I was considering one for my wife. There were bigger problems over the weak brakes, where do I park. I had the option of paying for a unused parking slot in my apartment. I am not for parking on the road, like my neighbors do. I rent, so the parking problem is going to carry or for as long as I rent. My wife was hell bent, is still hell bent on owning her own ride. For her, it is all about being independent and I agree. I gave her the option of Uber. We can spend 3.5lac on a new Nano or direct that money for the all the cab rides she will need. My wife was not very happy with the idea cause she isn't getting her own car. On the plus side, she does not have to bother about driving, parking, maintenance and whatever else associated with owning a car. When I hear about her cab trip back from work every evening and the chaos on the road, I am glad she isn't behind the wheel.

I too use Uber, when I know that driving isn't a good idea even if I stay well within the limits of consuming a certain fluid. More than getting punished for a crime, I will be in tears if my car gets hooked on a tow truck (Never has till date) or gets driven by some random person, to the chowki.

The other reason I am all for app cabs is the situation in my city. If I need to hop a bus to work, it will require a switch over of 2 or maybe 3 different buses. They cost a fraction of the cab trip provided you can put up with crowds, dealing with a conductor that never has change and whatever else. The rick guy will charge no less than Rs. 200 and my back will be busted in no time. With the app cab service, I have some idea of cost even before the trip is made and the comfort of a cab. I took an app cab once at 11pm. The fare was just Rs.98. Before booking a cab, I approached a rick guy whose first call was Rs. 300. I said Thank you and walked away.

In support of ones own personal transport, it is always good to have one ride at home. I feel it is a must. I never had the luxury of growing up with a car in the family. We traveled by bus, autos and hired cabs that were super expensive. It was embarrassing at times to think of going to a certain place in public transport. It was only 3 years ago that a car arrived for me. Even if the economics favor a cab, I still want one car of my own that will always be available for the family. More than image in a society, it is about the convenience on offer.

Last edited by sandeepmohan : 3rd July 2015 at 14:38.
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Old 3rd July 2015, 18:42   #57
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Default Re: Economics of car ownership in light of the new services (Uber, Ola, Zoom)

Points in favour of owning a car:
1.Aspiraitional value
2.Can be used when plans are made at last moment.
3.Driving pleasure on open roads

Points in renting/ taxi services
1.No hassles of driving in B2B traffic
2.Economical incase of predictable journeys- office to home, planned trip etc
3.Chance to drive multiple cars (self drive)

However the most important fact is the public transport around you. In mumbai/navi mumbai you have excellent train services, best buses as well as auto drivers who usually do not fleece you. In this city you could live without owning a car. But in Panvel (my college) I have usually been refused/overcharged etc by auto drivers. So the available infrastructure plays an important role too.
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Old 3rd July 2015, 20:26   #58
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The topic is economic of owning a car.....
Ownership and aspirations are the reason why all of us are here on T-BHP
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Old 3rd July 2015, 22:29   #59
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Default Re: Economics of car ownership in light of the new services (Uber, Ola, Zoom)

Quote:
Originally Posted by gk_fiesta View Post
I love cars
Well, here in Tbhp most of us are real auto fans, and I am pretty sure that there won't be many takers for the idea of not-owning, or selling the car to depend on cabs/self-drive rentals.

But keeping these situations in mind as rare cases, if you plan well and keep aside the feelings and emotions of owning a car, for some of us atleast, using cabs/self drives could make more sense.
Quote:
Originally Posted by sudev View Post
The topic is economic of owning a car.....
Ownership and aspirations are the reason why all of us are here on T-BHP
Well, I guess this topic cannot get a straight answer here on T-BHP unless everyone thinks about this with an open mind as most of us are wired to being self-driven

But as gk_fiesta has shared, owing and maintaining a car certainly is not cheap, and since booking a cab for city travel is painless nowadays, it's hard to justify keeping a 2nd car as a city runabout. And now, there are services like zoomcar for long weekend trips when you want to drive yourself (in Bangalore at least).
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Old 4th July 2015, 04:25   #60
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Default Re: Economics of car ownership in light of the new services (Uber, Ola, Zoom)

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Originally Posted by rsidd View Post
In apartment complexes the car parking spot does not come for free! It costs Rs 1-2 lakhs typically on top of the apartment cost. If as a tenant you're not paying directly, you're indirectly paying higher rent corresponding to this. But this is fine in my opinion.
Yes my friend, I never said the parking spot is free - I just said it is available. Of course you have to pay for it - nobody gets anything for free nowadays. That holds true even for rented cars is my point. The driver is parking the car somewhere and if he has to pay for it, he will eventually make us pay for it (every customer of his will share the costs though) - isn't that how business works? Isn't that the reason why we pay for parking lots in malls? Basically if all parking involves a price, be it own car or rented car - the end user will pay his share - as simple as that.

Quote:
Originally Posted by rsidd View Post
What is not fine, but quite common in Chennai at least, is watchmen at big houses on public roads in Chennai telling people they can't park on the public road near the house because saab's vehicle will come soon! The corporation needs to make it clear who owns that space (answer: the city) and charge people for using it, whether it's the house owner or anybody else.
That is absolutely ridiculous and should be condemned. If it is a public road / street, the watchman has no rights to shoo you away - unless you are parking in front of the house gates. If saab's vehicle is coming, he should either park in his own space or in another empty spot in the public road - he cannot ask one to move away.

Quote:
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I don't know about you but when I go out I generally park on the street and walk. Yes, sometimes we may go to cinemas or malls or restaurants with valet parking, but that's not the usual case. And because street parking is free or dirt cheap, finding a spot can take a while. (This is part of the reason I've taken to cycling when I can!)
I usually prefer to park in the parking lot (if available) even for my two-wheeler. Call me risk averse or lazy, but I would rather pay and park than park my bike somewhere open. At places where dedicated parking lot is not available - I totally understand what you mean - it is absolutely a pain. But that however, would not deter me from owning a car. I mean, the associated conveniences sometimes out-weigh these troubles.

When we were planning our first car, I am someone who advocated against going for an Innova because our yearly need to carry 5+ passengers will not exceed 2 times. For those couple planned trips we could rather rent a car. However, for all the unplanned emergencies / city runabouts with family / unplanned or quick planned trips to our place in Tamil Nadu (from Kerala) an owned car made a lot of sense - economical and emotional.
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