Uber promises 100% electric vehicles by 2040 and commits money to help drivers switch

Platform Industry News: Ride-sharing driver

Uber has said every vehicle on its own global ride-hailing platform will probably be electrical by 2040, and it pledged to contribute $800 million through 2025 to assist drivers switch to battery-powered vehicles, including discounts for vehicles bought or leased from partner automakers.

Uber, which as of early February said it had 5 million drivers worldwide, said it formed partnerships with General Motors and the Renault, Nissan, Mitsubishi alliance.

Along with the vehicle reductions, Uber said the $800 million includes discounts for charging and a fare surcharge for hybrid and electric vehicles, the cost of which could be partially offset by another small fee charged for customers that request a”green trip.”

Uber explained that vehicles on its own rides platform from the United States, Canada and Europe is going to probably be zero-emission by 2030, taking advantage of the regulatory support and advanced infrastructure in those regions.

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Uber Technologies said it had been discussing partnerships with other automakers.

Uber’s plan follows years of criticism by environmental groups and town officials across the congestion and pollution brought on by ride-hail vehicles and calls for fleet electrification.

Lyft Inc, Uber’s smaller rival, in June guaranteed to switch to 100% electrical vehicles by 2030, but said it wouldn’t provide direct financial support to motorists.

Uber said its goal is to reduce the overall cost of ownership for electrical vehicles, which are now more expensive than petrol cars.

The company also published data on its own emission footprint and said it would publish reports moving forward.

Ahead of the pandemic, electric automobiles accounted for just 0.15% of all US and Canadian Uber trip miles – roughly in line with typical US electric automobile ownership. At approximately 12 percent, the share of plug-in hybrid and hybrid automobiles was roughly five times as large as the US average.

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Ride-hail trips overall account for less than 0.6 percent of transportation-sector emissions, according to US data, but the total amount of on-demand vehicles has significantly increased since Uber’s launch almost a decade ago, with 7 billion excursions last year, according to Uber’s February investor presentation.

Uber said its US and Canadian trips with a passenger produce 41 percent more carbon dioxide per mile compared to a typical private car when miles spent cruising between passengers are also included.

Uber’s plans could be a boon to the automobile market. Stricter environmental regulation, particularly in Europe, is forcing automakers to invest billions to overhaul their operations while customer demand for electrical vehicles stays subdued.

Uber is also working with BP, EVgo and other global charging suppliers to supply discounts and enlarge the location of charging channels to get ride-hail drivers – normally regarded as a main barrier to broader EV adoption.

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Starting on Tuesday, all US and Canadian Uber drivers at a fully battery-powered electric car will get $1 extra per excursion, and an additional 50 cents in major US metro areas when passengers choose to pay extra after reserving a “green trip.”

The team at Platform Executive hope you have enjoyed this news article. Initial reporting via our official content partners at Thomson Reuters. Reporting by Tina Bellon in New York. Editing by Peter Henderson and Leslie Adler.

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