Car Ownership vs E-Hailing: A Shift in the Way We Move

For many South Africans, owning a car has long been associated with independence and convenience. However, the rise of e-hailing services is reshaping personal transport preferences. This is mostly due to the rising cost of vehicles, technological growth, and evolving lifestyle choices. 

E-hailing platforms have slowly narrowed the gap between traditional public transport services and car ownership. This mobility shift now has people questioning whether buying a car is actually worth it in today’s world. 

Let us take a well-rounded look at both car ownership and e-hailing so you can see which option would best suit you.

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The changing dynamics of how we move around 

Not everyone can afford to own a vehicle, which is why there will always be a need for public transportation services such as traditional taxis, meter taxis, buses, and trains. However, these modes of transportation have limitations, such as restricted operating hours, inconsistent availability in some areas, and safety concerns. As a result, daily commuters often felt the need to at least get an entry-level vehicle for greater practicality—until e-hailing came into play.

E-hailing platforms have transformed the way some people feel about the need for a car by offering a reliable alternative to traditional taxis, at an affordable price. This mode of transport was first introduced in South Africa in 2013 and has since gained popularity over the years. The ride-hailing market in South Africa is now valued at approximately 25.4 billion rand and is expected to reach a total market size of approximately 56.7 billion by 2030.

One of the primary factors driving the rise of e-hailing services is urbanisation. The demand for efficient transportation has increased as more people move to cities like Johannesburg, Cape Town, and Durban. With that said, car ownership still remains a long-term goal for many.

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What to consider when choosing between owning a car versus e-hailing

So the question is, is there a need to get a car when you can just hail a ride? Ultimately, your budget and lifestyle needs should determine which option fits best. Here are some factors to take into consideration before making your decision: 
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The cost of getting around when owning a car vs e-hailing

Owning a car

1. The initial cost of purchase

• Vehicle price: It is no secret that a car is a big purchase that requires a lot of financial planning. If you are making a cash purchase, you need to save for some time unless you already have a large amount of cash ready.
  
  
• Down payment: If you are buying a car through financing, you first need a deposit to secure it. The deposit is calculated based on a percentage of the vehicle’s total, and the amount varies depending on the dealer. It usually starts at 10% and could go all the way up to 25%. Some dealers offer a “balloon payment” or a “reverse deposit” option. This means you do not need to pay the deposit upfront but will make a large payment at the end of your term.
  
  
• Interests: A car that is financed comes with monthly instalments and an added interest rate. By the end of your term, you would have paid more than the cash price.
  
  

2. Ongoing operational costs

• Fuel: The cost depends on whether it is petrol or diesel, how much fuel your car needs, and how often you drive. 
  
  
• Repairs and maintenance: This includes serving your vehicle every now and according to the set schedule, the regular oil changes, tyre and battery replacement, as well as unexpected breakdowns.
  
  
• Insurance: Car insurance is essential and can come at a hefty price. The cost depends on your risk profile, which considers factors such as the type of car you drive, your age, and your driving history.
  
  
• Road usage costs: This includes the costs of toll fees when driving out of town and parking fees, such as when going to the mall.
  
  

3. Depreciation

• Loss in value: Remember that the value of a car depreciates, more especially in its first few years. This means you will receive less money when you sell or trade in.

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E-hailing 

1. Distance and time

• Trip distance: With e-hailing, you only pay when you use the service. The price of this service mainly depends on the distance. The longer the trip, the more you pay. This becomes a lot of money when you are frequently on the road, such as when travelling to work every day.
  
  
• Demand: E-hailing prices go up during peak hours when there is high demand and less driver availability, such as in the morning when people are rushing to work. This also happens on rainy days. 
  
  

2. Type of service

• Budget options: E-hailing platforms offer different service tiers depending on your budget. The cheaper rides come in smaller cars that may not always be comfortable, and the premium services come with larger or luxury vehicles and therefore cost more.
  
  
• E-hailing platform: The rates of the different e-hailing companies vary. Some are known to generally be cheaper than others.
  
  

3. Location

• City vs. small town: Urban areas usually have more people, constant traffic, and therefore, a higher demand. This means the prices will be higher compared to the same distance in a small town.
  
  

4. Connectivity

• ‍Internet: E-hailing services require an internet connection; you always need to have data wherever you are. This minor cost can feel tedious in the long run once you consider how much you have spent, especially if you use the service every day.
  

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The convenience and accessibility of car ownership vs. e-hailing: which is more practical? 

• Car ownership
  There is more independence and flexibility when you own a car. You can be spontaneous and drive to anywhere you want at any time. Long-distance trips are not much of an issue either when properly planned. You also can carry more items with you. For example, you can keep extra clothes in your car for the days when you need to be at an event after work or that random day when you end up sleeping over at a friend’s house.
  
  
• E-hailing
  There is usually a 5-15 minute waiting time when you request a ride; finding an available driver might even take longer during peak hours. Depending on how urgent your appointment is, this waiting time might be a big inconvenience. The location you live in also determines how convenient an e-hailing service will be to you. E-hailing services are mostly popular in cities across the country. Those living in small towns may have limited or no access to these services. Due to its dependence on internet connectivity, e-hailing services are not available in remote areas. 

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How car ownership and e-hailing affect your lifestyle needs 

• Car ownership
  If you are a frequent traveller or have a family, then owning a car is a better option. Family-orientated people need the convenience of car ownership in order to travel with the kids, drop them off at school, and get to them quicker when there are emergencies.
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• E-hailing
  If you stay alone, close to your workplace, work from home, and live in an urban area, then e-hailing is a more feasible option for you. Road trips can always be planned for ahead of time. You can even rent out a car for that, depending on your budget. 

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Whether e-hailing or personal driving, Cartrack has you covered!

Another option that you can consider is buying a car and then using it for e-hailing services during your free time. E-hailing is a flexible way to earn extra income. The money can be used to cover some of the expenses of owning a car. At Cartrack, we have solutions that enhance safety for vehicle owners and e-hailing services. 

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Cartrack vehicle security solutions

Our main goal is to keep your car safe at all times using advanced tools such as the following: 

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Stolen Vehicle Recovery (SVR)

Secure your car with a trusted vehicle security service. The reality is that vehicle theft is continual problem in South Africa, which makes a tracking device a must-have for vehicle owners. Our stolen vehicle recovery services are available 24/7, with real-time tracking, and nationwide access to skilled air and ground teams that are always ready to get your car back. Our history of over 100,000 vehicles recovered in the last decade means a strong legacy of trust, innovation, and relentless success.

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Location tracking

Use the Cartrack mobile app or website to get full visibility of your vehicle. You can easily share the live location with your loved ones, view your trip history, and get detailed information on driving habits such as speeding and harsh braking. This helps you see how well you drive and where you need to improve.

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Dashcams 

Get yourself a silent eyewitness on the road with our Road Vision and Dual Vision dashcam solutions. You can go with the forward-facing Road Vision camera or the Dual Vision solution that includes both front and in-cabin views—ideal for e-hailing safety. Both dashcams are cloud-based which means you can access footage at any time, even if the hardware has incurred some damage.

Recording your trips helps prove your innocence against accident disputes and fraudulent insurance claims. Dashcams are also highly recommended for e-hailing services as they make passengers feel safer and protect the driver from issues such as aggressive passenger behaviour.

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Cartrack value-added services 

As an extra layer of protection and convenience, you can include these value-added services in your package: 
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Protector 

The Cartrack Protector feature is a value-added service that ensures that you are never left stranded on the road. Whether you need roadside assistance, medical support, or emergency response, we will be there. All you have to do is push the button on the mobile app, and we will send the help you need to your location.

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Carwatch 

Our Carwatch feature can be seen as a virtual car guard. This is another value-added service that you can use to secure your parked car. All you need to do is activate it on the Cartrack mobile app after you park. If your parked car moves without your permission, you will get an alert, and help will be on the way.

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Fleet management for e-hailing drivers 

Our fleet management solutions allow e-hailing drivers to monitor vehicle performance, fuel efficiency, and maintenance needs. This is particularly beneficial for individuals who operate multiple vehicles for e-hailing or lease out their cars to drivers.

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Choose a reliable service provider for your car ownership and e-hailing needs

Cartrack is a leading vehicle tracking service provider with over 2 million subscribers worldwide. With us, you get advanced vehicle security services at an affordable price. Whether you use your car for personal trips or e-hailing, we will ensure that you and your car are protected. Join us today and get the peace of mind you deserve. 

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