If you are driving for Uber or Lyft in the United States today your car is your expense and your most important tool. With the Internal Revenue Service standard mileage rate going up and gas prices changing all the time the amount you pay for your car every month is not the thing you need to think about.
The thing that really matters is how much it costs to own a car. We are talking about the money that you actually pay every time you drive a mile. Here is a breakdown of how Electric Vehicles, Hybrids and cars with engines compare for people who drive for rideshare companies, in America.
What Exactly is TCO?
Most people who drive think they can handle paying five hundred dollars every month.. Veterans think about how much it really costs to drive a car for each mile.
The way to figure this out is to add up the car payment and the insurance, which includes the extra part, for ride sharing and the cost of fuel or charging and the cost of maintenance and the cost of the car losing value and then subtract any tax credits you get from filling out form eight nine three six. This gives you the cost of the car.
1. The Gas Slinger (ICE): The “Old School” Struggle
Real Life Scenario: Mark from Phoenix drives a 2022 Chevy Malibu. He got a deal on the car but the hot weather in Phoenix really hurts his gas mileage when he has the air conditioner on.
The Problem: Mark has to go to Jiffy Lube every 5,000 miles to get his oil changed. That costs him 90 dollars for the good kind of oil. He also has to fill up his gas tank every 3 days. That costs him 65 dollars.
Lets Look At The Numbers: Mark pays 3.80 dollars for a gallon of gas. His car gets 28 miles per gallon. So for gas Mark is spending about 13.5 cents for every mile he drives.
The By 2026 cars that only run on gas will be an idea for people who drive all the time. Mark from Phoenix is basically trading the life of his Chevy Malibu for some money but all the maintenance he has to do will eventually cost him more than he is saving. Cars like Marks 2022 Chevy Malibu are, like a trap that will keep costing him money.
2. The Hybrid King: The “No-Brainer” Middle Ground
Real-Life Scenario: Sarah from Seattle drives a 2024 Toyota Prius. Sarah does not have a garage to charge a vehicle so a hybrid car was her only option.
The Benefit: Sarah averages 54 miles per gallon. While Mark is worried about gas prices Sarah is spending 7 cents for each mile she drives.
The “Human” Touch: Sarah says “I do not have anxiety about how I can drive without charging I have anxiety about not having enough time.” Sarah also says “I cannot wait 40 minutes at a charging station when I have to pay a 15 dollar fee at the airport.”
The Verdict: If you live in an apartment or you drive distances across states, a hybrid car like Sarahs Toyota Prius is the safest way to get a good return on your investment, in the United States market.
3. The EV Revolution: The “Profit Machine”
David from Los Angeles bought a Tesla Model 3. He got the $7,500 Point-of-Sale Federal Tax Credit.
David charges his Tesla Model 3 at home at night. It costs him $0.14 for each kilowatt hour.
So his cost is 3.5 cents for each mile he drives his Tesla Model 3.
He drives for Uber Comfort Electric. He gets an extra $1.00 for each ride he gives.
This extra money from Uber Comfort Electric paid for four months of his Tesla Model 3 car payments year.
If you can charge your vehicle at home then an electric vehicle is the best choice.
You will save a lot of money by using an electric vehicle instead of a gas powered vehicle.
David thinks that using a vehicle like his Tesla Model 3 is, like getting a big raise.
3-Year TCO Comparison (Based on 45,000 Miles/Year)
| Expense Category | Gas (Toyota Camry) | Hybrid (Prius) | EV (Tesla/Ioniq) |
| Purchase Price (Avg) | $27,000 | $31,000 | $39,000 |
| Federal Tax Credit | $0 | $0 | ($7,500) |
| 3-Year Fuel/Energy | $18,200 | $9,500 | $4,800 |
| Maintenance (Brakes, Oil, etc.) | $4,000 | $2,500 | $900 |
| Uber EV Incentives | $0 | $0 | ($3,000) |
| Total 3-Year Spend | $49,200 | $43,000 | $34,200 |
The Reality Check: Over three years, an EV driver keeps $15,000 more in their pocket than a gas driver. That’s a down payment on a house or a massive college fund for your kids.
2026 US Market Factors You Can’t Ignore
1. The “Standard Mileage Deduction”
The Internal Revenue Service allows you to deduct an amount of money for each mile you drive which is about sixty seven cents. If you drive an Electric Vehicle that only costs you four cents to fuel you are basically getting the difference back in tax savings. This is a great deal for people who drive for companies like Uber.
- Insurance Costs Can Be High
You need to be careful when you buy insurance for a Tesla that you plan to use for Uber in places like Florida or New Jersey. The insurance can cost a lot of money three hundred to five hundred dollars every month. Always make sure to get a quote for insurance before you buy the car.
- How Well A Car Holds Its Value Compared To How Reliable It Is
People in the United States are often hesitant to buy Electric Vehicles that have a lot of miles on them like one hundred and fifty thousand miles. If you think you will sell the car in a years a Hybrid car, like one made by Toyota will probably be worth more when you sell it.. If you plan to drive the car for a very long time an Electric Vehicle might be a better choice, for you.
“18,000 RPM vs 6,000 RPM: Why EV Motors Outlast Traditional ICE Engines
According to Consumer Reports hybrid cars are the most reliable, requiring less maintenance than EVs or ICE. RPMs is not so much a factor as the amount of moving parts.
EVs vs. ICE in terms of cost of ownership depends on how long a period of time it is being measured. ICE cars cost a lot less up front. As time passes, the EVs close that gap with fuel and maintenance savings. One also needs to factor in electrical modifications needed to put a charging cord at the house.
Of course all of these things will vary depending on the owner and where they live and how much they drive.
How do I choose between hybrid vs EV?
Do you need to drive places that don’t have charging available (not so many of those, these days) or regularly drive farther than you can get on a charge? If so, or if you don’t have a convenient place to charge, get a hybrid. If not, get an EV.
As someone who drives 20–30 miles most days and long distances occasionally, I find an EV to be a little less convenient when traveling and much more convenient the rest of the time.
User experiance :- It’s tricky.
In my case, the problem is that I can only get a good enough EV by buying it new, because the models havd only just become available. Wereas with a hybrid, I can get a 2 year old one for about half the price. Hyundai’s Kona and Kia’s e-Niro look like they’d fit the bill. Close to 300 mile range, lots of features, etc.
But £33,000. Which is almost the same as a new hybrid version of the same cars. But I can buy 2 year old models of those. I guess it depends on your use cases.
I don’t drive to work any more. If I did, I think I’d get the EV for lots of reasons including never having to visit a gas station and there being almost nothing to go wrong with one.
The Final Call
- Buy an EV if: You have a Level 2 charger at home, you drive 200+ miles a day, and you qualify for the Federal Tax Credit.
- Buy a Hybrid if: You live in a cold climate, you can’t charge at home, or you do a lot of long-distance “Premier” or “XL” trips.
- Buy a Gas Car if: You’re only doing this as a side hustle for 10 hours a week and want the lowest possible entry price.