A landmark deal between Uber and Chinese electric car manufacturer BYD could see EV prices fall and autonomous vehicles hit the road within years.
BYD unveiled the new partnership with Uber, confirming that 100,000 new electric vehicles would be launched across Europe and Latin America, before expanding across the Middle East, Canada, Australia, and New Zealand.
Uber has the most widely available on-demand EV network in the world, while Shenzhen-based BYD is a global leader in “new energy vehicles”, with hopes that the partnership will slash the total cost of EV ownership for drivers.
Research suggests that Uber drivers switch to electric vehicles five times faster than private car owners thanks to lower maintenance costs and charging convenience.
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BYD and Uber will work to accelerate the rollout of autonomous vehicles
BYD
The two companies will also collaborate on future BYD autonomous-capable vehicles to be deployed on the Uber platform that will see the rollout of self-driving vehicles to a global audience at scale.
Dara Khosrowshahi, CEO of Uber, said drivers with an electric vehicle can deliver up to four times the emissions benefits compared to a regular motorist, adding that the brand was excited to help more people around the world.
Similarly, Stella Li, executive vice president of BYD and CEO of BYD Americas, commented: “We are elated to join forces with a global leader like Uber to not only accelerate the transition to electric vehicles but also to make green transportation accessible and affordable for everyone.
“This collaboration marks a new era in the electrification of urban mobility, and we look forward to seeing our cutting-edge EVs become a common sight on the streets of cities worldwide.”
Uber launched autonomous rides on the app with Waymo in October 2023. At launch, it operated solely in Metro Phoenix, Arizona, and made use of Waymo’s high-tech Jaguar I-Pace models.
ManMohan Sodhi, Professor of Operations and Supply Chain Management at Bayes Business School (formerly Cass) at the University of London, said it was a smart move from Uber to push forward with electric vehicles.
He suggested that costs would be lowered for riders and drivers, as well as BYD seeing another way to expand its global presence, apart from the United States where Uber works with Tesla.
BYD has already worked hard to have an appearance in major marketplaces as seen by its advertising campaign throughout the European Championships in Germany this summer.
BYD also has an ever-growing amount of dealers around the UK in most major cities, including four in London.
Sodhi added: “One main deterrent to EV adoption is the high initial cost. For Uber owner-drivers, the purchase cost will be lowered because of this deal.
“In any case, Uber has to convince only a small fraction of its 7.1 million drivers to buy 100,000 EVs over a few years as per this agreement.
“There are no implications for self-driving cars in this deal as drivers are key as purchasers, and the deal has a worldwide span.”
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Uber already offers its drivers operating in London a £5,000 grant to transition to electric vehicles in the hope that all of its vehicles operating in the capital will be zero emission by the end of 2025.
The brand has also secured discounts of £12,000 to £17,000 on selected electric vehicles for its drivers amid estimates that there are more than 100,000 Uber vehicles in the UK.
