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The Economics of Uber in India: should you sell your car?

by Deepak Shenoy, Capital Mind In my last post on Uber, I spoke of economics and we’ve had some extremely good arguments countering some of the economics. I’m always malleable, so if there’s a solid argument stating a case against me, I’m always open to change. 1. What About The Cost of Owning A Car? I spoke of the price per kilomoter for taking an Uber versus taking your own car, and Uber’s costs came to 13Km + per kilometer. Using your own car costs about Rs. 6 per kilometer – and if you added the rest up (About Rs. 0.5 per km as insurance, Rs. 1 per km as maintenance), you’d still pay less than an Uber. But there’s a larger cost: the cost of the car itself, which according to many people will be Rs. 10 per kilometer,…

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