Uber Partners With BYD on Putting Drivers Into 100,000 EVs

(Business Wire)

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Uber Technologies Inc. will team up with BYD Co. to put 100,000 electric vehicles onto the ride-hailing company’s platform, in a major deal between American and Chinese businesses that notably excludes the U.S.

Under the multiyear partnership, the two companies will offer drivers lower vehicle pricing and financing. The tie-up will start in Europe and Latin America, then expand to the Middle East, Canada, Australia and New Zealand, Uber and BYD said July 31 in a statement.

The alliance bolsters Uber’s efforts to transition the fleet of vehicles on its ride service to EVs — an initiative CEO Dara Khosrowshahi warned early this year was running off track. It’s also a major boost to BYD, which has been one of the world’s fastest growing automakers the last few years. That expansion has largely been driven by climbing the sales ranks within China’s massive car market, and the company is now embarking on an overseas expansion into countries where its brand is less established.

“We look forward to seeing our cutting-edge EVs become a common sight on the streets of cities worldwide,” said Stella Li, executive vice president of BYD and CEO of BYD America.

BYD and @Uber Unite to Make Green Transportation Accessible for Europe and Latin America.

"Uber and BYD share a commitment to innovate towards a cleaner, greener world, and I am excited to work together towards that future," said Chuanfu Wang, Chairman and President of BYD. pic.twitter.com/7X4K3dbGW7 — BYD (@BYDCompany) July 31, 2024

The pairing up cuts against increasing tensions between Washington and Beijing over the future of the automotive industry. China has built a formidable lead in batteries and the EV supply chain, and the U.S. has been trying to push back against that dominance with a combination of punitive tariffs and tens of billions of dollars in tax credits for companies and consumers.

Uber and BYD make no mention of the U.S. in their statement, likely because the market is virtually closed off to the carmaker. President Joe Biden has vowed to increase tariffs on Chinese EVs to 102.5% this year, ratcheting up a rate that former President Donald Trump raised to 27.5% during his four years in the White House.

The European Union and countries including Canada have since followed suit in adopting or considering higher duties on Chinese EV imports, which could further complicate Uber’s objective for 100% of its rides in U.S., Canadian and European cities to take place in electric vehicles by 2030.

One of the company’s challenges has been the dearth of affordable, long-range and relatively spacious EVs to compete with low-cost combustion engine-powered cars popular among ride-hail drivers, such as the Toyota Prius.

.@Uber has the most widely available on-demand EV network in the world. @BYDGlobal is a global leader in EV production. Together, we’re making it easier for @Uber drivers in Europe, Latin America and Asia to make the switch and go green 💚⚡

️https://t.co/6AqMgl2heU — dara khosrowshahi (@dkhos) July 31, 2024

BYD has been making a concerted push outside its home market, with a new plant in Thailand now online and plans for factories in Brazil, Hungary and Turkey. In February, the company agreed to supply cars to Vemo, a Mexico City-based startup offering electric taxis through Uber’s app. It was also one of the major sponsors of the Euro 2024 and Copa America football tournaments, boosting brand awareness across Europe and the Americas.

Surveys have shown the price of EVs and availability of financing remain key barriers for drivers to switch from gasoline-powered cars, the companies said. BYD vehicles have lower costs of maintenance and repair, and are well-suited for ride-sharing due to the wide range of models, they said.

The deal may also include discounts on charging, vehicle maintenance, insurance and lease and financing offers.

Uber teamed up years ago with U.S. rental-car company Hertz Global Holdings Inc. to offer perks to drivers renting Teslas, though Hertz has recently been selling off much of its EV fleet.

The ride-hailing company also has partnered with charging network providers such as EVgo and Revel Transit Inc. to offer discounts to its drivers. In London, Uber has committed to investing $6.4 million in public EV chargers.

In their joint statement, Uber also touted the automated-driving capabilities of BYD’s vehicles, and the two said they’re well-placed to scale autonomous-driving capability in the future. Uber currently works with Alphabet Inc.’s Waymo to provide autonomous rides in Phoenix and is offering autonomous deliveries in some parts of the US and Tokyo.

Shares of Uber and its smaller peer Lyft Inc. jumped after Bloomberg reported earlier this month that Tesla had postponed its unveiling of a purpose-built Robotaxi. Longer term, Tesla plans to operate a proprietary ride-hailing app with a fleet of driverless cars, potentially posing a threat to Uber’s business model.