Uber promises 100% electric vehicles by 2040, commits US$800m to help drivers switch

[NEW YORK] Uber Technologies on Tuesday said every vehicle on its global ride-hailing platform will be electric by 2040, and it vowed to contribute US$800 million through 2025 to help 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.

In addition to the vehicle discounts, Uber said the US$800 million includes discounts for charging and a fare surcharge for electric and hybrid vehicles, the cost of which would be partially offset by an additional small fee charged to customers who request a "green trip." Uber said that vehicles on its rides platform in the United States, Canada and Europe will be zero-emission by 2030, taking advantage of the regulatory support and advanced infrastructure in those regions.

The deals with GM and the Renault alliance focus on the US, Canada and Europe. Uber said it was discussing partnerships with other automakers.

Uber's plan follows years of criticism by environmental groups and city officials over the pollution and congestion caused by ride-hail vehicles and calls for fleet electrification.

Lyft, Uber's smaller US rival, in June promised to switch to 100 per cent electric vehicles by 2030, but said it would not provide direct financial support to drivers.

Uber said its goal is to reduce the overall cost of ownership for electric vehicles, which are currently more expensive than gasoline cars.

The company also released data on its emission footprint and said it would publish reports going forward.

Before the pandemic, electric cars accounted for only 0.15 per cent of all US and Canadian Uber trip miles - roughly in line with average US electric car ownership. At around 12 per cent, the share of plug-in hybrid and hybrid cars was roughly five times as high as the US average.

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

REUTERS