Finance

Hold Tight! Your Electric Uber Is Just a Few Minutes Away, Says CEO

2024-10-08

Author: Wai

In a bold new message, Dara Khosrowshahi, the CEO of Uber, urged riders to embrace a little more patience when waiting for their electric Ubers. In an exclusive interview with the BBC, he stated, "A couple of minutes isn't going to kill anyone," encouraging the public to opt for greener rides as the company makes strides towards sustainability.

Uber is increasingly promoting electric vehicle (EV) options, but Khosrowshahi emphasized that government support is crucial for boosting EV sales. He pointed out that more affordable, environmentally-friendly electric vehicles from China could enhance global efforts to combat climate change. However, there is significant resistance from several countries wary of perceived unfair competition posed by these vehicles to local manufacturers.

Khosrowshahi passionately argues that high-quality Chinese EVs are a vital part of the solution to the ongoing climate crisis. He's calling on the new UK government to hold fast to its pre-election promise to ban the sale of new petrol and diesel vehicles by 2030—a deadline that was controversially extended from an earlier 2030 target.

Patience is Key

Uber's commitment to promoting electric rides aligns with its ambitious goal to have all its journeys and deliveries powered by zero-emission vehicles by 2040. However, as the company seeks to widen its offerings beyond traditional taxi services—venturing into food and product delivery—the transition to a fully electric fleet is fraught with challenges.

The company currently offers an option for riders to request an electric vehicle at the time of booking. A forthcoming feature will allow customers to permanently set electric vehicles as their preferred choice. Despite this, the majority of Ubers are still gasoline, diesel, or hybrid cars, leading to inevitable waiting times for EV rides. Khosrowshahi reassured customers, stating, "We're not saying wait 15 minutes, but if you can spare an extra two or three minutes to help the environment, isn't that worth it?"

In London, nearly a third of Uber drivers have made the switch to EVs, suggesting that wait times may not be substantially extended. Conversely, in cities across Europe—such as Amsterdam, Berlin, and Paris—only about 20% of miles driven by Uber are in fully electric vehicles, indicating a disparity in EV adoption.

Khosrowshahi believes that the pursuit of electric vehicles will be beneficial for Uber's long-term business model, despite the current narrower profit margins associated with EV rides. The company is also expanding its delivery services, aiming to position itself as a rival to giants like Amazon. "Imagine receiving your pet food from your local shop through an Uber courier within an hour or two," he stated confidently.

Tackling Tariffs and Infrastructure Issues

In response to concerns about the burgeoning car journey numbers linked to ride-hailing and delivery services, Khosrowshahi acknowledged the complexity of tariffs influencing electric vehicle pricing, particularly concerning Chinese manufacturers. He argues that these Chinese-made vehicles should be factored into the global solution for transportation electrification, allowing for driver affordability and greener options.

Khosrowshahi also highlighted the crucial role of government initiatives in facilitating this electric transition, particularly in the UK. He suggested that efforts should particularly focus on high-mileage drivers, such as Uber operators, instead of spreading resources thinly across individual buyers. "Uber drivers rack up four to five times more miles than average drivers, so they should be at the forefront of electric vehicle adoption," he noted.

Automakers are also pushing for a more equitable distribution of subsidies between businesses and individual consumers to stimulate overall demand for electric vehicles. Meanwhile, tensions rise between the US, EU, and China as they grapple with issues of unfair subsidies and import tariffs that could disrupt market dynamics.

The UK remains unique in that it hasn’t imposed tariffs on Chinese-produced vehicles, a decision Khosrowshahi views as beneficial for broader affordable EV access in the UK market. He cautioned that tariffs aimed at increasing the cost of Chinese vehicles could inadvertently hinder global efforts to tackle climate change. In a strategic partnership, Uber has also aligned itself with BYD, China's second-largest EV manufacturer, further solidifying its commitment to sustainability and innovation in the transportation sector.