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What Does Uber Mean to the Automotive Marketplace?

Darrek Olson
Uber Featured Image

Uber is changing the way we get places.

If you haven’t heard of Uber, let’s take a crash course…

You need to get from point A to point B. For whatever reason, you don’t have a car. Don’t fret though, because you have the Uber app! Open it and input your desired destination; within minutes someone rolls up with their car and you’re on your way.

Is this really that earth shattering though? You could just take a taxi, right? You could, but you’d have to find the number for the taxi service or wait on the side of the road with your thumb up like Jerry Seinfeld. Uber makes it simple and painless, plus you don’t have to carry cash (we are living in 2016 after all) or hand a stranger your credit card.


However, these conveniences may result in a few changes for the automotive marketplace…

The death of car rentals

Why rent a car if you only need a few rides? Paying for a few Uber trips is significantly less expensive than renting a car for the entire weekend. At an average cost of $13.36 per trip, many vacationers could save some money if they’re only making a few stops per day. Businesses sending employees out wouldn’t have to worry about their driving records and insurance legalities. This would also forego the need to find parking, which alone might be enough to warrant Uber’s convenience! These people are on vacation anyway; why be stressed driving in an unfamiliar place?

All this being said Uber is teaming up with Enterprise and Hertz to help enthusiastic drivers without compatible vehicles to still be able to do the job.

A shift towards new car sales

Uber has qualifications that its drivers must meet before they’re hired. One of them is an age requirement on the vehicle (less than fifteen years old in most cities). This may push drivers to lease or purchase new instead of buying used, thus being able to drive for Uber for more years without upgrading. Another major requirement is that the car has four doors and the ability of the car to carry five total people. This will have an impact on the types of cars being purchased as well.

Interested in a new qualifying set of wheels?  Search Carsforsale.com Sedans today.

Increased number of high mileage late model vehicles

Uber drivers will obviously be driving more than the average person. This will result in more miles being put on their cars in fewer years. This should prove beneficial to pre-owned dealers looking to have newer vehicles with low prices on their lots to entice buyers to take a look, and could also increase sales of aftermarket warranties.

Don’t Panic Yet

With all these looming changes, Uber is not available everywhere (it only covers about 500 cities/metros) and thus won’t affect everyone. Coverage in small towns and rural areas just doesn’t make sense for the company as it stands currently, and even some metro areas are without service. Also, the number Uber drivers is only about 160,000, which is just a drop in the bucket compared to the number of cars on the road today.

If you are considering driving for Uber or getting into a different car, Carsforsale.com can help you find your next ride.

Tell us, have you used any application based ride services?  What are your thoughts?


Darrek Olson
Darrek Olson

Darrek is an enthusiast driver who values the journey more than the destination. A self-proclaimed Miata fanboy, his obscure knowledge of cars sometimes prevents him from remembering what he had for breakfast.

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