The companies announced that the partnership will begin in Europe and Latin America, providing drivers with affordable prices and financing options for BYD’s EVs on the Uber platform. It will later extend to the Middle East, Canada, Australia, and New Zealand.
Uber and the Chinese automotive manufacturer BYD have unveiled a comprehensive multi-year collaboration, declared on Wednesday, targeting the introduction of 100,000 new electric vehicles (EVs) to Uber’s global ride-hailing network.
This initiative will commence in Europe and Latin America, where Uber drivers will benefit from competitive pricing and financing options for BYD’s electric vehicles. The partnership is set to broaden into additional markets, including the Middle East, Canada, Australia, and New Zealand, according to statements from both companies.
In response to this news, Uber’s stock experienced a rise of approximately 2.5% in premarket trading. The high costs of electric vehicles and rising borrowing rates have historically impeded the adoption of EVs, leading to slower-than-anticipated growth in demand over the past two years.
Amid escalating concerns over climate change and the urgent need to reduce greenhouse gas emissions, there has been a vigorous global movement towards electrification in the transportation industry. In an effort to facilitate the shift towards electric vehicles, Uber and BYD are set to provide drivers with various incentives such as discounts on vehicle maintenance, charging solutions, and favourable financing and leasing terms, varying by market.
Uber’s CEO, Dara Khosrowshahi, emphasized the considerable environmental benefits of switching to electric vehicles, pointing out that an Uber driver using an EV can achieve emissions reductions that are up to four times greater than a typical motorist because they spend more time driving.
Additionally, the companies have plans to enhance BYD’s vehicles by integrating self-driving technologies into the Uber platform.
Meanwhile, BYD’s competitor in the U.S., Tesla, plans to unveil its robotaxi product in October as it seeks new directions following a dip in EV sales in the earlier half of the year. Despite this, BYD had overtaken Tesla as the leading electric vehicle manufacturer globally last year, though Tesla, led by Elon Musk, has recently reclaimed its top position. Uber has also been actively promoting the use of electric vehicles among its drivers in the U.S., working closely with Tesla since January as part of its broader goal to achieve zero emissions in U.S. and Canadian cities by 2030.
