Uber today announced a $7.5 million investment designed to accelerate New Zealand’s electric vehicle (EV) transition with a new EV subsidy programme for drivers. Starting 1 July, drivers with fully-electric vehicles will be eligible for a 50% service fee discount up to $5,000 per year over two years.* The programme will be available to drivers in all New Zealand cities where Uber is available.

This commitment advances Uber’s global ambition to eliminate tailpipe emissions and become a zero-emissions platform by 2040. Promoting transition for high kilometre users, like rideshare drivers, can have an outsized impact in accelerating the transition to zero-emission transport. 

One EV on Uber goes a long way, with EV drivers on the platform realising four times the emissions reduction benefits when compared to average car owners. In addition EV rideshare supports community education on zero emissions transport. It provides an opportunity for drivers to talk to riders about what it’s like to own an EV and how they deal with issues like range anxiety.

“New Zealand is at the forefront of greener rides for Uber globally, with the vast majority of rides already happening in a hybrid vehicle. But as we race toward our 2040 goal of eliminating tailpipe emissions altogether, we’re taking action to help even more driver partners go electric,” said Dom Taylor, Managing Director at Uber ANZ. “We know one of the greatest barriers to making that switch is the upfront price of EVs. Now, between the Government’s EV uptake programmes and our new multi-year incentive for drivers, we’re hoping to see a steady stream of EVs come onto the Uber platform in the years ahead.”

Alongside the EV subsidy programme, Uber New Zealand will introduce Uber Green – a product that allows Kiwis to request hybrid or all-electric rides. Starting this May, riders can enjoy a low or no-emission ride, by selecting an Uber Green ride, at the same price as UberX. The addition of Uber Green to the New Zealand app will bring increased global consistency to our product offer.

One of the main barriers to stronger EV uptake in New Zealand is the upfront cost of the vehicles when compared to the more affordable second hand hybrid. The 50% service fee discount will further improve the total cost of ownership for EV drivers, making them a more attractive option. 

To understand the barriers that are currently facing rideshare drivers transitioning today, we built a rideshare-specific Total Cost of Ownership (TCO) model comparing Internal Combustion engines, petrol hybrids and Battery Electric Vehicles (BEV). We will release the full model, analysis and assumptions in the coming months but we wanted to share some of the early insights and findings. It will be important for businesses like Uber to work with industry and government to simultaneously address barriers like vehicle supply, charging infrastructure provision, and the inclusion of EVs in the Road User Charge program.

“While these steps are incremental, we believe they are the right thing to do for drivers, consumers, and cities,” said Taylor. “We want to support the transition to EVs and want them to be a practical and economic choice for driver partners. However, to unlock the economic and environmental benefits of electric rideshare, meaningful collaboration is needed between governments and industry.”

Drivers interested in going electric can learn more about Uber’s sustainability resources here. 

 

*Available for the first 750 eligible drivers.

**Note: full-time equivalent driver, access to overnight at-home charger and public rapid charging where required