Even with COE prices at their lowest in quite some time, car ownership is still ridiculously expensive for the average joe.
The government believes that strict vehicle population control is the key in ensuring our roads aren’t constantly clogged up, seeing that Singapore has a land scarcity problem. This car-lite decision is made easier for the masses due to our relatively efficient public transit system, with the MRT network able to shuttle up to three million people daily.
And whilst our buses and trains are an effective way for you to commute, they might not be as suitable if you need to travel somewhere on a whim. This is where the Private Hire Cars and car sharing services come in really handy here, as they offer on-demand transportation services as and when you need them.
But if you use these services regularly, what really is cheaper – car sharing, or ride sharing? And what are some of the pros and cons of both? Let’s find out!
The Average Commute
According to research data, the average Singaporean drives 38 kilometres to and from work daily. They’ll also spend about 60 minutes behind the wheel. With these figures in mind, we can then work out how much you’d spend with either method of transportation.
Ride Sharing/Hailing is more straightforward than Car Sharing. You can flag a cab in the traditional way or use any of the ride sharing apps available today.
We’ve used ComfortDelGro ZIG’s fare structure for this purpose. As both journeys would be during peak hours, surcharges will be imposed on top of the $12.30 base fare for that distance. A 25% surcharge is levied on top of said fare for the morning journey, with the evening commute costing an additional $3 on top of that. All in, you’d be looking at around $34 in commutes a day.
Car Sharing
There are many different car sharing providers. But for the purposes of daily commuting, you can really only use the services of a Point A-to-B provider. No peak hour or city surcharge here – this particular company charges a flat rate for their on-demand rental services.
Keeping in mind the original ‘average’ commute above, a user would be paying around $25 for driving to and from work. The company also encourages users to reserve cars and return lots at a small fee, so factoring that in will drive the $25 up to $29.
You’ll Enjoy Significant Savings Then. But at What (Hidden) Cost?
You’d save 17% on your daily commutes by using car sharing instead of ride sharing. But there are considerations to take note of. With charging stations operated by a different vendor than the provider operating the shared cars, system reliability can be patchy.
Car/return station availability also isn’t guaranteed. You’ll need to actively look out for available cars/stations before every commute. That can get old very quickly, especially if your morning schedule is ridiculously tight. And this network really only benefits you if you happen to live and work near one of their stations.
In an ideal world, it is a brilliant way to have access to your own set of wheels when you need them. However, the world we live in is imperfect, and ride sharing, despite the additional cost, seems to be the better bet overall.
Especially since there are now at least four operators vying for ride hailing supremacy. We all know that increased competition leads to drops in prices, which is a massive win for the consumers. This also means you’ll be able to have access to a wider pool of vehicles regardless of where you live or work, and there’s also no need to worry about whether or not you’d be able to return the car.
Capitalise on High COE Prices and Sell Your Car Today!
With COE prices set to gradually fall, if you’re looking to offload your vehicle, there’s really no better time to do so than now. Sure, not having your own set of wheels after years of car ownership can take some time to get used to.
Look at it this way though – selling your car at a higher price now and waiting for the COE market to continue cooling can mean a big upgrade once quota premiums are significantly lower. And sure, there’s no doubt that it is less convenient to have to rely on public transport and PHVs.
But with decent overall network connectivity, moving about in Singapore, considering our overall lack of land mass, isn’t realistically the hardest thing to do!
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