Rent a car vs UBER in San Diego

These days, the thing, i.e. the service that is new and becoming more and more popular in the Bay Area, near San Diego or even in the city itself and in almost entire West Coast of the US – is a car sharing service called UBER. But what exactly are UBER or LYFT and other similar car sharing services? Why is it so popular these days and is it a threat to car rental companies?

To be most precise and simple – UBER, LYFT and other similar car sharing services are a new form of transport worldwide.

What is UBER and how it works?

It works in a way that you have a mobile app downloaded to your smartphone, then you add your location and a place where you want to go and the app finds you the nearest driver who will take you to your destination. Also, it's cheaper than regular taxi, and the driver can be a plain citizen who has its own insured car, driving license, and doesn't have a police record. Of course, UBER runs 24/7, but it depends on the activity on the app.

UBER is really very cool, it's very cheap; it's cheap to the extent that it has become the cheapest way to ride, because its prices are very low. It is very similar to taxis and it has become a big competition to regular taxi drivers, who recently have rebelled against it. Furthermore, UBER earns its money in a way that it takes a percentage from drivers for every ride, and these provisions range from 5 to 20 percent, depending on a lot of factors. Payments are completely back grounded and cashless: the customer, i.e. the passenger pays with credit card, UBER takes a cut for itself and it directly deposits the remaining money into the driver's account.

Also, UBER offers different levels of service that range from low-cost rides to luxury and premium rides with professional drivers etc. Today, UBER operates in 45 countries from Abu Dhabi to Zurich for instance, but as far as the US are concerned, due to different legislation and regulations, it still isn't allowed everywhere. For example, UBER is very popular in Los Angeles and its area, while you can't hail an UBER in Portland, Oregon.

UBER is very popular because it's the cheapest way to ride between spot A and spot B, it's much cheaper than taxi and it has remarkable social media marketing, a lot of quality drivers, while the technology and app's background are well developed. Of course, LYFT and other UBER's competition have almost everything the same as UBER.

Is UBER a competition to car rental companies?

However, UBER is not a competition to car rentals and it can't be a replacement for it in any way, here's why:

Firstly, UBER, LYFT, Sidecar and similar car sharing services do not compete directly with vehicle rental companies, because instead of vehicles they are selling transportation in the form of rides. With that in mind, it's crystal clear that they do not compete with car rentals, but taxi cab industry.

Moreover, UBER is good and cheap only for short and particularly city-bound rides like taxis, but if you want to travel or you need a long term transportation, car rentals are still the cheapest way for that. Also, when you rent a car, you have your own comfort, you can drive by yourself and you do not depend on other's driving skills. In car rental industry you can always pay in cash and get a lot of discounts for different things, while it is impossible to do that with UBER.

All in all, UBER is a cool new thing in world's transportation, but it definitely can't be a replacement for car rentals, because they are not the same, they’re peaches and oranges, while UBER is a serious threat to taxi cab industry. Hence, it is still more economic for all travelers and passengers to rent a car when they need to go somewhere – UBER and similar companies can only be a one-time solution or a backup to standard rent-a-cars and its benefits and characteristics.