Venture: Ubers Electric Car Fleet
Uber
The millennium taxi service Uber is looking into the future, announcing by 2040 they will have 100% electric vehicles. Uber has committed over $800 million to help their drivers switch to electric vehicles. This fully zero-emission platform will be set in motion in 2025 and will be enacted in the US, Canada, and European cities.
Country Comparison
If Uber can follow this timeline they would achieve a huge milestone, which will be a decade ahead of the Paris Climate Agreement target sets for 2050. This will give Uber a huge hedge in the ride-sharing industry and allow them to advertise this advantage hoping that the consumers will realize this impact and choose Uber over competing companies.
Four Step Plan
Uber has released a four-step initiative on how they will achieve this feat.
First, they plan to launch Uber Green where customers will be given the option to spend an extra dollar so they can request a hybrid electric vehicle or full electric vehicle to pick them up. If a customer chooses this option, they will receive three times in Uber Rewards points. This plan will be expanded to over 65 cities around the world by the end of the year.
Secondly, Uber has stated that they are setting aside $800 million to start the full transition over to electric vehicles. They will be able to collect this money through the Uber Green option and surcharges that go along with using a electric vehicle, as well as collecting fees from the London and French Clean Air Plans. For this to work Uber needs to incentivize drivers to go green, so they are giving an extra fifty cents per trip for every Uber green trip that is completed. On top of that drivers that are using electric vehicles will get another dollar from Uber, totaling to an extra $1.50 for every trip that is completed with an electric vehicle.
Other companies are also partnering with Uber such as GM and Renault (Nissan) giving discounts on electric vehicles to Uber drivers. They will be offering rental cars for Uber drivers to expand the electric vehicle fleet. They will also be in touch with BP to expand the amount of charging stations for driver use worldwide.
Third, Uber plans on integrating other forms of transportation such as bikes, scooters, and transit stations. Joining forces with the popular scooter company Lime, they will able to make their Uber app a one stop shop for all your transit needs. This will give customers several pricing and ride options on how they decide to travel.
Lastly, Uber has released its sustainability report, where it goes in depth on how it will go about all of the operational efforts of this mission. In this report Uber admitted that its carbon intensity is higher than that of average-occupancy personal cars. The U.S and Canadian trips with a passenger produce 41% more carbon dioxide per mile than an average private car.
Uber Electric Car Release Party
Competition
Considering all the electric vehicle news, rival company Lyft has also come out with a plan to switch to a 100% electric fleet. They are committed to completing this task by 2030.
Sam Arons, director of sustainability at Lyft, stated “We are taking a big step forward, leading our industry and helping to meet the climate challenge that face all of us.”
This pledge is very similar to Uber’s plan, where they are transitioning all vehicles used on the Lyft platform to electric. Lyft has approached this idea by partnering with a rental company and allowing their drivers to begin using electric vehicles instead of their own cars.
This response from Lyft is not only in response to Uber, but also to adjust to new California emissions rules that are being implemented that make it more cost-effective to avoid fossil fuels.
Ride-Hailing Emissions
End Game
Uber is taking large steps with this new Uber Green plan and is making many promises. It is exciting to see that Uber is embracing the future and is willing to take a risk. It will take time for this all to be enacted and for the market to adjust, but the end result should leave the world a better place and set a precedent for other companies on how to conduct business.
As the consumer becomes more educated about the world around them it will be difficult for companies to be opaque, we live in a world where everything you do is exposed to the public. As these large companies become more translucent it will force positive change, as seen by Uber’s latest initiative.