OnDemand WTP Pricing Research

How Much Could You Actually Save by Not Owning a Car? | Yahoo! Finance

Is it Cheaper to Take Grab Rides Instead of Driving?

Our research and calculations indicate that the average Singaporean would save about S$580 per year by taking Grab rides instead of driving their own car. We reached this conclusion by using Grab’s rates and our own estimates about average travelling behavior in Singapore. First, we assumed that riders would need to travel the same distance as the average driver. Then, we estimated that these individuals would use Grab about 4 times a day, or 1,470 times in one year. Next, we calculated the time-based cost by using the average annual travel distance (S$16,700) and estimating that rides average speeds of 50 km per hour, which would take about 20,040 minutes in total throughout one year. Finally, to account for surge pricing, we estimated that on average about 1 in 4 rides will face surge pricing of about 30%. Based on these inputs and Grab’s pricing, we calculated that the total annual cost of ride-sharing to be approximately S$16,347.

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How Much Could You Actually Save by Not Owning a Car?.