How expensive is Uber versus renting a car?

On days when public transportation is inconvenient or it just can’t get you where you need to go, it’s a good idea to weigh the pros and cons of taking rideshares versus renting a car for the day. For many people, it comes down to how much it costs to take an Uber. A couple short trips split among friends may not be so bad, but for solo rides or longer distances, you may not realize just how expensive Uber is. We’ll break down how Uber fares are calculated and compare rideshare prices to the cost of renting a car for the day to help you make an informed decision.

Breaking down the cost to take an Uber

As you’ll soon see, there’s no easy way to answer the question “How much does it cost to take an Uber?” While Uber’s pricing algorithm is proprietary, there are a few known factors that come into play to make up the estimated rates you’re quoted after plugging in your origin and destination. Here’s what to know.

Base rate

The base rate is calculated according to the time and distance of the trip. It also varies by the type of ride you order, such as UberX Saver, UberXL, UberPool and Uber Black.

Booking/operating fee

This flat fee helps cover operational, regulatory and safety costs.

Taxes, tolls, fees and surcharges

There are a handful of “extra charges” that you may face. For example, riders are responsible for tolls incurred, any applicable taxes and additional fees based on city or state regulations. There may also be fees and surcharges associated with trips to or from the airport, if the driver has to wait for an excessive period of time or if you cancel after being matched with a driver.

Surge pricing

When demand is higher than normal or outpaces the supply of drivers, a multiplier is applied to the base rate, called surge pricing. This temporary fare adjustment could significantly increase the price you’d typically pay for the same route, and is meant to entice additional drivers to hit the road.  

How expensive is Uber? 

As you can see from the factors that go into Uber pricing, the final cost will vary by city, distance, demand and the type of ride you select. Surge pricing is a significant variable since it can be unpredictable and added at any time. If you submit a ride request during a surge period, you could be stuck with high rates, a long wait time or both. 

Surge pricing aside, how expensive is Uber normally? Here’s a quick comparison chart for two UberX rides so you can see the difference in estimated pricing between two cities and the potential rates you can expect for varying ride lengths.

When you’re trying to figure out how expensive Uber is, you can see based on the pricing information above that using a rideshare is most cost-effective when traveling longer distances and to a destination outside of the city center. Short trips downtown can be really expensive for the distance driven. 

If you’re looking for an alternative to Uber, public transportation may be a better option for short distances. For longer drives and day trips, many people opt for a rental car so they have more flexibility. Driving yourself to destinations outside the city also means you don’t have to worry about being in a location with fewer available rideshare drivers when you’re ready to travel back into town. 

Is it cheaper to rent a car than take Uber?

Now that we’ve taken a look at how expensive Uber is, let’s review the costs associated with renting a car for the day through Avail. We’ll use the same cities as before — Chicago and Denver — for direct comparison.* 

Let’s say you have plans to visit a downtown location, a spot outside of town, and then go back to your hotel, for a total of 35 miles. Based on our previous Uber calculations, you could expect to pay around $71 for the day in both Chicago and Denver for these three rides. In a standard rental car, which has a fuel economy of about 24 miles per gallon, you’d also factor in the cost of roughly 1.5 gallons of gas. So your total rental car cost in both Chicago and Denver would be around $63 for the day. That’s an $8 savings to rent a car from Avail versus taking expensive Uber rides, and you’d have the freedom to move at your own pace without worries of surge pricing adding an unexpected cost to your trip.

Get around for less with Avail

It’s clear that renting a car for the day is more cost-effective than taking Ubers around, especially if you plan to use the rideshare service a few times in one day. Plus, renting gives you more flexibility to get on the road when you want (i.e. you don’t need to wait 30 minutes for surge pricing to go away) and more freedom to take detours or change your itinerary during your trip. With rideshares, you always need to keep in mind that there may not be many or any drivers available in smaller towns.

When you’re looking for a rental car in Chicago or Denver, use Avail to get more out of your trip. You can add a second driver to your booking at no extra cost, and modify your reservation if plans change. Every booking is protected by Allstate insurance and 24/7 roadside assistance so you can enjoy your trip with peace of mind. Hit the road fast from a self-service pick-up location near you.

*Average cost as researched when this article was written (March 2024).

Gas prices from https://gasprices.aaa.com/?state=CO and https://gasprices.aaa.com/?state=IL

Fuel economy: https://afdc.energy.gov/data/10310