Rental Cars vs. Rideshares: Which is Better for the Environment at Scale?

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image of a several cars emitting pollution displaying the environmental impact of a ride share waiting to pick up passengers

With climate change at the forefront of global concerns, travelers are increasingly considering the environmental impacts of their transportation choices. Whether you’re weighing the convenience of a rideshare service like Uber or Lyft, or opting for a rental car, there’s a pressing question: Which is better for the environment, especially at scale?

Let’s dive into the environmental impact of Rental cars vs. ride-shares, referencing studies and real-world examples.

Vehicle Utilization: How Efficiency Matters

One of the main differences between rideshares and rental cars is how they’re used over time.

  • Rideshares: Services like Uber and Lyft are often praised for reducing the number of privately owned vehicles on the road. However, these services also face a significant issue: deadheading. Deadheading refers to the miles driven by rideshare drivers while waiting for or traveling to pick up a passenger. According to a study by the Union of Concerned Scientists (UCS), ridesharing services increase vehicle miles traveled (VMT) compared to private car use. This is largely due to deadheading, where drivers spend significant time on the road without passengers, contributing to additional emissions.
  • Rental Cars: Rental cars, in contrast, typically remain idle when not in use. Once rented, they are driven solely for the renter’s needs. This results in fewer “empty miles” compared to rideshares, as rental cars don’t need to search for passengers or are used for other uses such as food delivery. Typically, they are used for longer, planned trips, leading to more efficient mileage. While rental cars don’t offer the pooling options rideshares do, their overall usage is more targeted, which can reduce unnecessary emissions.

Fleet Composition: The Push for Electrification

The type of vehicle being driven plays a crucial role in determining environmental impact. Both rideshare services and rental car companies are pushing to electrify their fleets, but progress varies.

  • Rideshares: Uber and Lyft have pledged to shift to electric vehicles (EVs), with Uber aiming for 100% electric rides by 2030 in key markets. Yet, as of now, according to a study from Terawatt, less than 1% of rideshare vehicles in the US are electric. This adoption is higher in certain regions, but gas-powered rideshare vehicles still dominate in most areas. While rideshare EVs can significantly reduce emissions, they are not yet the norm.
  • Rental Cars: Even though there has recently been a pullback on shifting their inventories to electric vehicles by some rental car companies due to consumer preference, since rental car companies have more control over their fleet turnover, they can systematically replace older, less efficient vehicles with newer, more efficient cars, EVs and hybrids, providing an immediate option for eco-friendly travel.
image of a charging port for an EV displaying the environmental impact of a rental car

Per-Trip Efficiency: Short vs. Long Trips

Environmental efficiency varies depending on the length of the trip and how many passengers are involved.

  • Rideshares: Rideshare services can optimize their environmental footprint if passengers share rides. Lyft’s “Shared Rides” option, for instance, allows multiple passengers heading in the same direction to split a ride, potentially cutting emissions per passenger. However, the reality doesn’t live up to the potential. According to the previously mentioned report from Union of Concerned Scientists, less than 20% of rides are pooled, and the savings from pooling are often offset by the emissions generated during deadheading. Moreover, rideshares frequently replace trips that could have been taken on foot, by bike, or via public transportation, further increasing their environmental footprint.
  • Rental Cars: Rental cars are often used for longer, planned trips, which can make them more efficient on a per-mile basis. Without the frequent start-stop nature of short trips (common in ridesharing), rental cars are generally driven more efficiently. Additionally, travelers who opt for electric or fuel-efficient rental cars can significantly lower their carbon emissions during their journeys.

Overall Environmental Impact: The Bigger Picture

To evaluate the overall environmental impact of rental cars vs ride shares, it’s important to look at broader trends and data.

  • Rideshares: Despite their potential to reduce the need for personal vehicles, ridesharing services have been shown to increase traffic congestion and emissions in urban environments. A study published in ScienceDirect found that ridesharing services lead to more VMT, offsetting any potential emissions savings from carpooling or shared trips. Rideshares can also reduce the use of public transportation, replacing what could have been a more eco-friendly option.
  • Rental Cars: In contrast, rental cars, especially when EVs are used, show more promise in reducing transportation-related emissions. As more rental companies adopt electric and hybrid vehicles, travelers have the option to choose greener alternatives for long-distance trips, making rental cars a more sustainable choice in certain contexts.

Conclusion: Which is Greener at Scale?

When scaled up, rental cars generally have a lower environmental impact compared to rideshare services. Issues like deadheading and increased VMT from rideshares, especially when doubled as food delivery vehicles, contribute to higher emissions, making them less eco-friendly than initially perceived. Rental car companies, with their increasing investment in electric and fuel-efficient vehicles, can offer greener options for those needing cars for long trips.

Chris Sciulli

Chris Sciulli is the Digital Marketing Manager for AutoRentals. He is a featured speaker on various digital marketing topics, the former owner of the digital marketing blog, "Smokehouse SEO," has been featured on several digital marketing sites such as "Search Engine Land," and was listed as a top social media marketing expert by "Search Engine Journal."

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