- Uber partnered with BYD for 100,000 EVs for the ride-hailing service
- The partnership could get BYD into the U.S. while skirting retail sales
- Uber's targeting a zero-emissions platform by 2040 and going all-electric by 2030 in some markets
Uber on Wednesday announced a partnership with BYD to bring 100,000 of the Chinese automaker's EVs to its ride-hailing platform—laying the groundwork for BYD EVs to reach the U.S.
The agreement—the largest so far between Uber and an automaker—will see the ride-hailing giant deploy BYD vehicles "in key global markets," starting with Europe and Latin America, according to a company press release, and later expanding to include the Middle East, Australia, Canada, and New Zealand.
While the U.S. was not mentioned, the Uber partnership gives BYD a way into the U.S. other than retail sales, which are unlikely to remain an option for the automaker given current high tariffs on Chinese-made vehicles, something that's unlikely to change regardless of which party wins the 2024 presidential election.
BYD Seal
In Uber, BYD now has a large potential customer for fleet use of its EVs, something that failed to develop in the automaker's previous efforts to enter the U.S. Marketed mainly as a taxi, the BYD e6 was even certified for sale in the U.S., but customers didn't bite. BYD, which regularly competes with Tesla for the most EV sales, currently sells EVs like the Seal in Mexico, and is also considering entering the Canadian market, Reuters reports.
Uber claims its drivers are going electric five times faster than private car owners, but that driver surveys show that price and lack of financing options remain major barriers for those that haven't made the switch. To address this, Uber and BYD will work to provide EVs to ride-hailing drivers at lower cost, the release said.
The partnership may include financing and lease offers for drivers, as well as discounts on charging, maintenance, and insurance, "based on what works best for drivers in a given market," the release said.
BYD Dolphin EV - Euro spec
The two companies will also partner on future "autonomous-capable vehicles" developed by BYD to be used by Uber. The ride-hailing company has long considered EVs designed specifically for its ride-hailing and delivery services, also working with startup Arrival on a good-looking design that was later dropped by the startup. Among established automakers, Hyundai seemed like the most logical partner for Uber EVs on the ground, given the two companies' existing partnership to develop electric air taxis.
Efforts to acquire more EVs feed into Uber's targeting a "zero-emission platform" by 2040, with the goal to be all-electric by 2030 in some markets. In California, that will simply mean compliance with an EV mandate for ride-hailing services passed in 2021, which requires companies like Uber to go all-electric by the end of the decade.
