Uber Offers $4,000 Incentive for Drivers to Switch to EVs
▼ Summary
– Uber is offering $4,000 grants to drivers in select U.S. states to switch from gas vehicles to electric vehicles as part of its “Go Electric” program.
– The company aims to make all trips in electric vehicles by 2030 and achieve carbon neutrality in North America and Europe by 2030 and globally by 2040.
– This initiative reverses Uber’s 2020 decision against directly paying drivers for EVs, responding to the recent expiration of the $7,500 federal EV tax credit in the U.S.
– Uber is rebranding its “Uber Green” service to “Uber Electric,” offering riders discounts and expanding battery-aware trip matching to more EV brands in multiple countries.
– Challenges include high EV costs for drivers, their status as independent contractors, and past setbacks like Hertz’s EV depreciation leading to reduced EV rentals for ridehail drivers.
In a major push to accelerate the adoption of electric vehicles among its drivers, Uber is now offering $4,000 grants to help them transition from gasoline-powered cars to zero-emission models. This initiative, part of the newly renamed “Uber Electric” service, directly supports the company’s ambitious goal of achieving 100 percent electric trips in major markets by 2030. The move marks a significant shift from Uber’s earlier stance, where it declined to provide direct financial assistance for drivers switching to EVs.
The timing of this incentive is critical. With the recent expiration of the $7,500 federal EV tax credit in the United States, purchasing an electric vehicle has become more financially challenging for many drivers. Uber’s $4,000 grant is strategically designed to help offset this loss, making EV ownership more accessible for those who rely on their vehicles for income. The grant amount is identical to the former federal credit available for used electric vehicles, positioning Uber’s program as a direct replacement for that expired benefit.
However, access to this financial support is not universal. Initially, the “Go Electric” program is available only to drivers based in New York City, California, Colorado, and Massachusetts. When combined with existing state-level incentives, such as Massachusetts’ MOR-EV program or Colorado’s Clean Fleet Program, the total savings on a new or used EV can be substantial, significantly lowering the overall cost barrier for drivers.
Uber’s journey toward an all-electric fleet has encountered several obstacles. A high-profile partnership in 2021, which saw rental company Hertz order 100,000 Teslas and 65,000 Polestars for potential use by ride-hail drivers, ultimately faltered. High depreciation rates led Hertz to scale back its EV rental plans, offloading many of the electric vehicles it had acquired. Despite these setbacks, Uber has reaffirmed its commitment to electrification. Last year, the company entered into a partnership with Chinese automaker BYD, aiming to deploy 100,000 EVs across Europe and Latin America. Uber reports that there are already 200,000 EV drivers active on its platform worldwide.
Transitioning hundreds of thousands of drivers to electric vehicles remains a formidable challenge. Ride-hail drivers are independent contractors who often use their personal vehicles for multiple gig economy apps, meaning Uber cannot mandate a vehicle switch without compromising their freelance status. The higher upfront cost of electric vehicles presents another significant hurdle, even though EVs generally offer lower fueling and maintenance expenses over time. For drivers operating on thin profit margins, this initial investment can be prohibitive.
In addition to the direct financial incentive, Uber is enhancing its support for EV drivers through technology. The company is expanding its “battery-aware matching” feature to more electric vehicle brands, including Kia, Hyundai, Ford, Nissan, Volkswagen, and Mercedes-Benz. This smart routing system considers the vehicle’s current battery level when assigning trips, helping drivers find routes that conclude near charging stations or avoid exceeding their battery range. This feature is now launching across 25 countries in the U.S., Canada, and Europe.
Uber has also rebranded its eco-friendly ride option from “Uber Green” to “Uber Electric,” shifting the service to include only fully electric vehicles, hybrids are no longer eligible. To encourage rider adoption, Uber is offering a 20 percent discount, up to $8 off, on Uber Electric rides using the promo code GOELECTRIC20. This offer is valid for seven days, providing a short-term incentive for passengers to choose electric.
(Source: The Verge)
