Art inspires life or life inspires art - The Ashwin Uber 25 Rs for 3 Kilometres Ad

The argument goes on and on, but the cause–effect relationship is not clearly known. In my view, the knife cuts both ways — that is, both are true.

Take, for example, movies and advertisements. Many argue that movies inspire people to act in a particular way, and many times movie makers have claimed that it is the incidents that happen in real life that give them inspiration.

 A case in point is Hyderabad, the capital of the Telangana state. It is a Thums Up guzzler. There is a predominant leadership for the brand that is unmatched anywhere else in India. Why? There is a popular belief that after partaking an oily, mutton- or chicken-filled biryani, a Thums Up will magically wash away the ill effects of oil intake and aid in digestion. Is this true? Doctors disagree and say that a cold drink after a biryani harms more than it does any good.

But the belief is steadfast — and the Coca-Cola Company does not mind it one bit. Hence, it was not a surprise that Coca-Cola did an advertising campaign where Shah Rukh Khan very proudly says: “Miyaan, biryani ke Baad soft drink Nahi… Toofani (Thums Up) Peete hain.” Meaning, after a biryani, one does not drink a soft drink he has a Toofani (Thums Up).

Similarly, I have always wondered about the concept of using one’s own bike or car in a country where ride-hailing apps are a dime a dozen, the rates are competitive, and they arrive in a jiffy. I have been a big fan of public transport and ride-hailing apps, and in fact, I call myself an MMTS (Multi-Modal Transport System) guy.

I find metro train travelling very convenient, and not having a personal vehicle forces me to walk and keeps me healthy. I have been using ride-hailing apps and find that most of them are convenient, reasonably priced, and can be used whenever we want. Unlike owning a car, they are not a dead investment when they are not being used.

Yes, human beings are status conscious. I am not very bothered about what others think of me. In a way, it is: “I live my life as I like it.” That is why the Uber ad featuring Ashwin and Dhoni (or is it a Dhoni look-alike?) resonated with me.

The ad features a suave  and obviously a well-educated South Indian  Ravichandran Ashwin, who is on an Uber motorcycle, asking a Dhoni look-alike who is admiring his new bike:

“What is the cost of this motorcycle?” A taken-aback Dhoni look-alike answers: ₹25 lakhs. Ashwin, with a smug expression, responds: “These Haya Vayas are all a waste. Why don’t you use Uber Bike? It is only ₹25 for 3 kilometres.”

I did some quick math. Should one buy a superbike/car or use ride hailing apps. 

Uber Bike vs Owning a Superbike / Car (Suzuki Hayabusa)

Background: Ramesh, a professional working in an Indian metro city, travels daily 40 kilometres for work and errands. He is considering whether to continue using Uber Bike or fulfil his aspiration of buying a Suzuki Hayabusa on EMI. The decision is analysed purely from a cost perspective.

Option A: Uber Bike Usage 

Daily cost                                            : Rs 400 (at Rs 10/km)
Working days per month                     : 25
Months per year                                  : 12

Monthly cost                                       : Rs 400 × 25 = Rs 10,000
Annual cost                                         : Rs10,000 × 12 = Rs 1,20,000

Total annual Uber Bike expense         : Rs1,20,000

Option B: Owning a Suzuki Hayabusa/car

On-road price                                    : Rs 20,00,000

Down payment                                    : Rs 2,00,000
Loan amount                                       : Rs 18,00,000
Loan tenure                                         : 5 years
Interest rate                                         : ~8.5%

Monthly EMI                                      : approx. Rs 39,000
Annual EMI cost                                 : Rs 4,68,000

Running Costs

Petrol price                                          : Rs 110 per litre
Mileage                                               : 25 km/litre
Annual usage                                      : 5,000 km

Fuel cost per km                                 : Rs 4.40
Annual fuel cost                                  : Rs 22,000 

Maintenance & Ownership Costs

Insurance                                             : Rs 25,000
Servicing & maintenance                    : Rs 20,000
Tyres & wear                                      :  Rs15,000
Miscellaneous                                      : Rs 10,000

Total maintenance cost                       : Rs 70,000

Total Annual Cost – Hayabusa

EMI                                                     : Rs 4,68,000
Fuel                                                     : Rs 22,000
Maintenance                                        : Rs 70,000

Total annual cost                                 : Rs5,60,000

If one adds a driver for a car @ Rs 25,000 per month, that adds another Rs 3,00,000 per year.

Comparison Summary

Uber Bike annual cost                                     : Rs 1,20,000
Hayabusa / Car annual cost (with driver)       : Rs 8,60,000

Difference                                                       : Rs 7,40,000 per year

Mind-boggling, isn’t it? One can save roughly Rs 7.5 lakh per year, and this amount can be invested  maybe in mutual funds, gold, or even real estate. It can be used as a down payment to buy a flat.

Even from a plain savings point of view, Rs 7,50,000 per year would amount to ₹75,00,000 in ten years — an amount with which one can decently purchase a flat in Hyderabad.