In June Uber announced it would cut services by 50% for another three years to encourage drivers to adopt electric vehicles following a successful trial.
The fee reduction equates to a $26 million investment by Uber into Australia’s electric-vehicle market by increasing the use of battery electric vehicles on its platform.
Matthew Kean, NSW Treasurer and Minister for Energy said, “Governments and the private sector need to work together to achieve net zero by 2050 and a key part of this is ensuring that we accelerate the use of more sustainable transport options. It’s great to see big businesses like Uber invest heavily in the industry and this initiative will help to incentivise the uptake of electric vehicles with rideshare drivers in a cost-effective way. NSW has a nation-leading EV strategy and our commitment to tax reform and government rebates, together with support from private companies, will lay the foundation for an EV revolution across the State.”
As part of this initiative, from July 1, Uber is cutting service fees by 50% for driver-partners using eligible battery electric vehicles (BEVs) on the platform until June 30, 2025. This follows the success of a 12 month trial of reduced service fees for BEV driver-partners which ran from July 2021 to June 2022.
This is a further step in Uber’s commitment to having 100% of rides globally in zero-emission vehicles or through micromobility and public transport, by 2040.
“At Uber we believe the future of transport is shared and electric and we are committed to accelerating the adoption of electric vehicles in Australia. This investment is about providing incentives to help driver partners make the switch to electric, and the results from the past year have been phenomenal,” said Dom Taylor, GM Rides, Uber Australia and New Zealand.
“The number of driver-partners using EVs on the platform has almost quadrupled, with five times as many EV trips being taken now than before we began the initiative, equating to over 500 tonnes of C02 emissions saved.”
“So we know this approach is producing results and we also know that driver partners want the program extended. We want to do our bit – we’ve listened to them and have extended this initiative for another three years.”
In April last year we announced a service fee reduction of 50% for BEV driver-partners taking trips on the platform from July 1 2021 to June 30 2022, which has driven huge increases in green trips. The results from the 12 month trial include:
- Over 378,000 EV trips completed EV driver-partners on the platform have increased 4 times nationally
- Monthly EV trips have increased nearly 5 times nationally
- Approximately 502 tonnes of CO2 has been saved (the equivalent of planting 16,000 trees)
- EV driver-partners saved an average of $5.5K AUD from a combination of service fees and fuel savings over the last 12 months
Australia lags behind the rest of the world in take-up of electric vehicles with EVs still only representing 0.7% of the million cars sold in Australia annually.
“One electric vehicle on the Uber platform can help the equivalent of 100 riders a month get from A to B, with rideshare drivers realising three to four times greater emissions savings compared to average car owners.’
“We want to work with governments, vehicle manufacturers and key stakeholders in the industry to accelerate the rate of EV adoption across Australia so that together we can create a more sustainable transport future,” Mr. Taylor said.
Behyad Jafari, CEO of the Electric Vehicle Council said, “Australians understand that electric vehicles help clean the air, cut carbon emissions, and reduce our dependence on imported oil, meaning they are keen to see more on our roads. What we know is the best way to support people going electric is to take a ride in or drive one. Once you experience the performance of an electric car, there’s no going back. That’s what makes Uber’s initiative so great – not only will it help drivers go electric, but it will provide riders with an opportunity to experience new sustainable innovation.”
