Ride-hailing company Uber announced a partnership with China-based BYD, the largest electric vehicle manufacturer in the world, to increase EV ownership among Uber drivers. The project aims to add 100,000 EVs to the ride-hailing platform.
Both companies are EV leaders in their respective categories: Uber has the most widely available on-demand EV network in the world, and BYD is a global leader in EV production. By working together, the companies aim to bring down the total cost of EV ownership for Uber drivers, accelerating the uptake of EVs on the Uber platform globally, and introducing millions of riders to greener rides.
Uber drivers will be offered price discounts and special leasing deals on BYD EVs, as part of the agreement. It may also include support for charging, maintenance and vehicle insurance.
The project aims to add 100,000 EVs to Uber’s platform and will begin in Europe and Latin America before expanding to Australia, Canada, New Zealand and countries in the Middle East.
European Uber drivers are transitioning to EVs five times faster than non-ride-share drivers, according to a March 2024 report by BloombergNEF commissioned by Uber. However, according to driver surveys, the cost of EVs — the upfront price as well as charging and maintenance costs — is a major consideration for Uber drivers when deciding whether to switch from a vehicle with an internal combustion engine to an EV.
While EVs are often targeted toward the luxury market, BYD’s offerings tend to be much more affordable. For example, BYD’s new Seagull model, which is expected to enter the UK market next year, starts at just $9,700 in China.
The Uber and BYD partnership will “accelerate the transition to electric vehicles” and make EVs more affordable and accessible, said Stella Li, EVP and CEO of BYD Americas, in the press release.
Savings on the purchase or maintenance of an EV will likely disproportionately benefit ride-share drivers simply because they drive their vehicles more than owners of private vehicles. According to the Rocky Mountain Institute, full-time ride-share drivers would save $5,200 per year on fuel and maintenance costs by switching from a conventional gas vehicle to an EV.
According to Uber, the benefits go beyond ride-share drivers. “Many riders also tell us their first experience with an EV is on an Uber trip, and we’re excited to help demonstrate the benefits of EVs to more people around the world,” said Uber CEO Dara Khosrowshahi.
Sources: automotivedive.com; investor.uber.com