Uber will pay drivers $4,000 to switch to electric vehicles

As it accelerates to meet its pledge to make “100 percent” of trips electric by 2030, Uber is offering $4,000 grants to drivers to replace their gas-guzzling cars with zero-emission vehicles. The company is also ditching its “Uber Green” branding in favor of the simpler “Uber Electric.”

Uber said it would be just that Carbon neutrality in North America and Europe by 2030 And in all global markets by 2040. But when it first announced the pledge in 2020, it said it would not directly pay drivers to ditch their gas-burning vehicles in favor of electric cars. Now, the company is reversing that decision in hopes that direct payments will help accelerate electric vehicle adoption.

The reason for the switch is not surprising. The recent expiration of the $7,500 federal electric vehicle tax credit in the US is expected to put a dent in EV sales, which will make it harder for Uber drivers to make the switch while also keeping their costs in check. Uber’s new offer aims to soften the blow for many drivers who have relied on credit for both used and new electric cars.

Not every driver will be eligible for the grants, at least not at first. As part of Uber’s new “Go Electric” program, drivers in New York City, California, Colorado and Massachusetts can apply for $4,000 when switching to a new or used electric vehicle. When combined with local incentives, e.g Massachusetts MOR-EV and Colorado Clean Fleet ProgramEV prices could fall even further.

Uber points out that the $4,000 was the same as a recently expired federal tax credit for used electric vehicles. Through the “Go Electric” initiative, Uber hopes to offset the loss of the tax break by allocating its own money to purchase electric cars.

It’s been a tough ride for Uber as it seeks to eliminate gas guzzlers from its platform. During the electric car glut of 2021, car rental company Hertz announced a purchase 100,000 Tesla and 65,000 polar starsWith the aim of renting some of them to passenger car drivers. But higher consumption rates have led to… Hertz reversed deals and offloaded most of its electric vehicles I’ve already gained it.

but Uber has stuck to its commitment To get more drivers into electric vehicles. Last year, the company announced a partnership with Chinese auto giant BYD to put drivers in 100,000 electric cars in Europe and Latin America. The company says there are currently 200,000 electric car drivers on the Uber platform globally.

Of course, it has prompted hundreds of thousands of people who drive for Uber to switch to electric cars It won’t be an easy task. Ridehail drivers are classified as independent contractors, and many use their personal vehicles to drive for not just one company but multiple businesses. Uber can’t force all of its drivers to make the switch without jeopardizing their independent status. Also, electric vehicles tend to be more expensive than gas-powered vehicles, although the cost of fuel and maintenance is lower. This high upfront cost can be a challenge for many drivers, who typically operate on razor-thin profit margins.

Earlier this year, Uber said Uber Green, the company’s product for electric and hybrid vehicles, would become an electric-only feature. Previously, Uber Green featured electric and hybrid vehicles, offering a per-trip surcharge (usually $1) to drivers who used any vehicle with less tailpipe pollution. Now, under the Uber Electric brand, the company is offering riders discounts of 20 percent, or up to $8, for electric car rides with the code GOELECTRIC20. (The offer is valid for seven days).

Uber is also expanding its battery-aware matching feature to include more electric vehicle brands. This feature filters trip requests based on the electric vehicle’s battery level so drivers can accept trips that end close to the charger or avoid trips that are too long for their battery. The feature is now launching in 25 countries in the US, Canada and Europe. It will now support electric cars from Kia, Hyundai, Ford, Nissan, Volkswagen and Mercedes-Benz.