Longer vehicle lifetimes and fewer maintenance costs
Vehicles will last much longer in terms of vehicle miles (500,000-1M miles) and cost just a fraction to repair (conservatively estimated at 20% of gasoline vehicle repair costs).
Only TaaS will benefit from the increased lifetimes. In individual ownership, a 1 million mile EV would last 100 years. Given the increasing pace of fleet turnover, vehicles will be obsolete quickly in the individual ownership model, and so depreciation (or lease) payments will still be based on residual value calculations.
But in TaaS, the capacity to travel 1 million miles combined with fleet ownership, no secondary market, and high utilization means that depreciation will be calculated by spreading the costs over the lifetime miles evenly, leading to a dramatic saving: each mile travelled by TaaS will cost just 1/1,000,000th of the upfront cost.
The upfront cost of an EV compared to a gasoline vehicle is the key focus of commentators, but it has far less impact on cost per mile than the improvement in lifetime miles.