Ride-hailing giant, Uber, has inked a multi-year deal with Chinese electric vehicle (EV) maker, BYD, to deploy 100,000 new EVs onto its platform.
However, the partnership, initially focused on Europe and Latin America, will exclude Africa.
The deal aims to make EV ownership more accessible for Uber drivers through attractive pricing and financing options.
The partnership is expected to expand to the Middle East, Canada, Australia, and New Zealand.
The move comes amidst a global push for electrification in the transportation sector, driven by mounting climate change concerns and stringent emissions regulations. Despite the growing interest, EV adoption has been hampered by high vehicle costs and increased borrowing rates.
Incentives for drivers
To accelerate the transition, Uber and BYD will offer drivers incentives such as maintenance discounts, charging benefits, and flexible financing options. Uber CEO, Dara Khosrowshahi, highlighted the potential environmental impact of drivers switching to EVs, emphasizing their increased time on the road compared to regular motorists.
“When an Uber driver makes the switch to an EV, they can deliver up to four times the emissions benefits compared to a regular motorist, simply because they are on the road more,” Khosrowshahi said in a statement.
Beyond ride-hailing, the partnership will explore integrating BYD’s vehicles with self-driving technology. This development comes as Tesla, BYD’s US rival, gears up to unveil its robotaxi in October.
While BYD briefly surpassed Tesla as the world’s largest EV maker last year, the latter has reclaimed the top spot. Uber also has a similar partnership with Tesla to promote EV adoption among its US drivers.
Uber in Africa
While it is unclear yet why Uber has excluded Africa from its latest landmark deal, the company has had successes on the continent.
In 2022, Uber announced it had completed 1 billion rides across all its markets in Africa. This feat translates to over 10 billion kilometres in terms of distance covered, according to the company.
That milestone for Uber came nearly a decade after the mobility tech company set up shop on the continent in Johannesburg, South Africa.
It has since established a presence in seven other African countries: Nigeria, Ghana, Egypt, Kenya, Tanzania, Uganda, and Ivory Coast.
Meanwhile, Uber recently solidified its presence in Africa as it led a $100 million Series B funding round for Nigeria’s mobility startup, Moove. The round also included other investors like The Latest Ventures, AfricInvest, Palm Drive Capital, Triatlum Advisors, and Future Africa.
Uber is Moove’s largest car financing and vehicle supply partner with operations across Africa and India.