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Uber And Tesla Reach Partnership To Boost EV Adoption

Wallstreet InsightWednesday, Jan 17, 2024 4:27 am ET
1min read

While Some companies like Hertz are abandoning EVs, Uber took a different action.

The ride-hailing giant said on Tuesday that it is partnering with Tesla to encourage its drivers to use electric cars in the United States, as part of its objective to achieve zero emissions in cities across the U.S. and Canada by 2030.

This partnership is dependent on two strategic initiatives: sharing ride data with Tesla to guide the expansion of Tesla's Supercharger network and providing purchasing incentives to Uber drivers.

In December last year, Tesla announced a collaboration with Uber to offer electric vehicles to Uber drivers at a discounted price: Uber's own marketplace would provide drivers with the opportunity to purchase new or used cars at discounted prices, meanwhile, through this new agreement, Tesla would also become a partner on this platform and offer discounts of up to $3000 on the purchase of Model 3 and Model Y, based on driver ratings.

 We know from listening to Uber drivers that the cost of ownership and access to convenient charging are the top two barriers preventing them from going electric, and we are ... (working with) Tesla to tackle both of these issues, said Andrew Macdonald, senior vice president of mobility and business operations at Uber..

Under the plan, Uber drivers will be able to purchase vehicles directly from the Tesla factory or existing inventory using a referral code until supplies run out, but they must purchase and take delivery of the vehicle before March 31 and complete 100 trips before May 15 to be eligible.

Uber has already launched test drives at Tesla stores. Starting in New York City, Uber has begun sharing data with Tesla, informing them of the locations where drivers most need charging infrastructure, including the regions with the highest number of driver trips.

Notably, as of last year, Uber had 74,000 active electric vehicle drivers in the United States, Canada, and Europe.


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