Uber Promises 100% Electric Cars by 2040

Uber Technologies Inc issued a pledge on Tuesday saying all vehicles on its global ride-hailing app will shift to electric cars by 2040.

Uber also vowed to set aside $800 million through 2025 to help its drivers switch to electric cars. This will include discounts for vehicles bought or leased from partner automakers.

In addition to the discounts on electric cars, Uber said the $800 million would also cover charging and fare surcharge discounts. The cost of electric and hybrid vehicles under the platform could be slightly offset for customers who wish to have a "green trip."

The company said cars on their platforms in the U.S., Canada, and Europe would be zero-emission by 2030, reported Wired. It will take advantage of the regulatory support in the said regions.

CEO Dara Khosrowshahi recognized the company's duty to reduce its environmental impact.

"Today, we're committing to working with cities to build back better together and tackle the climate crisis more aggressively than ever before," she said.

Some prospect partners for Uber were General Motors and the Renault, Nissan, and Mitsubishi alliance. Other automakers are also eyed for partnerships.

So far, the app has 5 million partner drivers worldwide as of early February, Reuters reported.

Uber Responds to Critics

The plan to switch to electric cars is due to criticism that the company faced in recent years. Many environmental groups and city officials have told the company causes pollution and pollution on the road.

These groups called for fleet electrification, a request that is not being fulfilled by Uber.

Uber's smaller rival in the U.S., Lyft Inc, also promised a switch to 100% electric cars by 2030. But It didn't say that it will provide direct financial support to its partner drivers.

Uber added that they aim to reduce the overall cost of owning electric cars. These kinds of vehicles are currently more costly than gasoline cars.

Data on the emission footprint of the company was also released. They said they would continue to do so going forward.

Incentives for Uber Drivers

Instead of paying for drivers' electric cars in the switch, Uber chose only to offer incentives. There will be an extra fee on trips completed through an electric vehicle.

Drivers who also make the switch will be given incentives, The Verge reported.

It will be delivered through "Uber Green" with a surcharge in 15 cities in the U.S. and Canada. Riders will have to pay a dollar extra for rides that are specifically on hybrid and electric cars.

Drivers who use hybrid vehicles to pick up customers will have an extra 50 cents per ride. Those who use specifically battery-electric cars will get one more dollar on top of that, making $1.50 per ride.

The biggest problem the company will face is actually getting its riders to switch.

Uber drivers are classified as independent contractors. Many use their cars to drive for not just one but several companies.

Uber tried to give some North American drivers incentives to switch to electric cars, but it never expanded after the pilot phase.

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