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Uber and BYD have announced plans to offer the ride-hailing company around 100,000 of the Chinese carmaker’s electric vehicles to its drivers in various regions.
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The ride-hailing company says it wants to offer Uber drivers the “best prices and financing,” starting in Europe and Latin America.
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BYD has been expanding its range of affordable electric cars in recent years, including in Europe. The companies indicate that Canada could be part of their long-term plans.
BYD is no longer completely unknown in North America, with its electric offering Now they have also found their way into Mexico and South America, as part of the company’s global expansion.
And now BYD is partnering with Uber to bring about 100,000 electric vehicles to select regions where Uber operates, starting with Europe and Latin America, and possibly Canada later.
According to the automaker, the goal is to lower the cost of owning an electric car for Uber drivers with what the company calls “best-in-class pricing and financing.” That could include discounts on insurance, vehicle maintenance and charging.
It also complements Uber’s stated strategy for transitioning to electric vehicles.
“When an Uber driver switches to an electric vehicle, they can reap up to four times the carbon savings of a regular car driver, simply by being on the road more,” said Dara Khosrowshahi, Uber’s CEO. “Many riders also tell us that their first experience with an electric vehicle is on an Uber ride, and we’re excited to bring the benefits of electric vehicles to more people around the world.”
BYD notes that Uber drivers are five times more likely to adopt electric vehicles than private car owners. Despite this, “driver surveys show that the price of electric vehicles and the availability of financing remain the main barriers to adoption,” BYD notes.
But that deal will bypass America, as BYD models aren’t sold or leased in the U.S., at least for now, even though the automaker already has an office in the U.S. And BYD has yet to formally launch sales in Canada, which could be thwarted by the threat of tariffs.
Additionally, the two companies plan to collaborate on future BYD vehicles with autonomous capabilities, so human drivers aren’t necessarily part of the long-term picture, even if Uber may not want to incur the costs (and full-time staff) of running a large robotaxi network just yet.
But SAE Level 4 robotaxis are certainly part of the company’s future strategy.
BYD itself has undergone rapid expansion into new markets in recent years, becoming one of the most prevalent Chinese brands outside the Middle Kingdom. At the same time, it is beginning to challenge other regional players in their own markets.
Recent electric models such as the Seagull and Dolphin have received industry praise and offer very low entry costs for electric vehicle buyers in several key electric vehicle markets.
But one aspect of this deal that has received relatively little attention is the fact that Uber is now increasingly getting involved in leasing and renting out cars to its independent drivers, and thus wants to make money from the arrangement.
We’re old enough to remember when Uber was content to generate revenue primarily from drivers providing rides to passengers, rather than leasing cars to drivers. Now, after several years of losses—a trend that will be reversed in 2023—Uber is increasingly turning into a leasing company by offering cars via ‘the Uber platform’.
Would BYD be able to sell its cars in Canada and the US without tariffs, or is a different approach justified? Let us know what you think in the comments below.
