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    > suburbs have a lower cost-per-mile for trips than urban areas.
Can you explain why?



Two ways to get these numbers. Consider the total miles driven, divided by cost of the car. Or consider the cost of a taxi if you don’t own a car.

I believe uber says their average cost per mile is roughly $1. So maybe $2 in urban areas. Waymo is $3 they said.

I saw some statistic that said a new car costs $800 a month now. Since we’re talking about selling new manual vs self driving cars, we can ignore people buying used cars or particularly cheap cars.

If you own a car in a city, you might drive to get groceries once a week and you may drive to a furniture store once every few years, and you take a couple trips to the airport every year. Cost city dwellers walk or take transit. Cities are dense, so the grocery store may be 2mi a way, so roughly 200mi a year, and then maybe 200mi a year for everything else. That’s 400mi a year (or 8mi/wk) with a car that statistically costs $800/mo in America - or 200/wk, so it actually costs $25/mi.

In the suburbs, you may drive 20mi round trip to the grocery store. Then 20mi a day round trip to commute, then 5mi a trip to a restaurant… it adds up to a lot more miles total. I googled it and the average American drives 1200mi/mo. That’s $1.5/mi assuming the same average $800/mo cost of a new car.

That means it’s cheaper for an urban dweller to take uber or Waymo instead of buying a new car. It’s almost but not quite cheaper for a suburbanite to take an uber but definitely not a Waymo.




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