Four years ago, Uber (UBER) made a pledge to switch all of its vehicles worldwide from electric to electric by 2040. The company now has a fleet of more than 140,000 electric vehicles (EVs) and oversees about 500 EV trips per minute. But that’s not enough for Dara Khosrowshahi, the company’s CEO. “Frankly, we need to expand that,” he said today (Sept. 23) at the Concordia Conference in New York.
In addition to its 2040 pledge, Uber has committed to zero emissions across the US, Canada and Europe by the end of this decade. To help motivate its drivers to make the transition from electric as quickly as possible, the company has invested $800 million in introducing a number of new programs, such as paying Uber drivers higher rates for EV trips. “The driver of an EV makes more for each trip, and it comes from our pockets because, without investment, innovation is impossible,” said Khosrowshahi.
Uber drivers also receive discounts in the range of a thousand dollars when they buy EVs from Uber partners such as auto dealer AutoNation and Tesla ( TSLA ). The company offers discounts to drivers because, according to Khosrowshahi, “affordability is not where it should be. “
Another obstacle to Uber’s implementation of its green strategy is drivers’ concerns about charging, including concerns that charging EVs will be too time-consuming, cumbersome or disrupt Uber rides. To address this challenge, Khosrowshahi said the company has introduced a smart charging feature for EV drivers that alerts them where and when to charge, optimizing for lower rates and less busy times. To help drivers use local charging infrastructure, Uber has entered into strategic partnerships in certain cities. In New York, for example, it has investments and partnerships with the likes of Its Electric, a roadside EV charging startup, and charging provider Revel.
Uber also recently partnered with Chinese automaker BYD to roll out 100,000 electric vehicles across Europe, Latin America, the Middle East, Canada, Australia and New Zealand. (Uber is not available in China.) The deal aims to strengthen Uber EV cars outside the US and lower car costs for Uber drivers. The July partnership followed Khosrowshahi’s warning in January that the EV market was facing a loss of demand as governments pulled back on financial incentives and automakers focused on flagship models. “The stark reality is that Uber will not reach our zero-emissions goals without strong action from policymakers and businesses,” Khosrowshahi wrote in a January article published in Fast Company.
Uber’s climate mission isn’t limited to EVs. Khosrowshahi said Uber is also focusing on growing the popularity of its ride-sharing options. “We are trying now to make passengers use one car, to reduce traffic and reduce emissions,” he said. “Affordable, sustainable, shared is what we are trying to achieve.”
