Uber Australia has partnered with Chinese automaker Build Your Dreams (BYD) to increase the presence of electric vehicles (EVs) in the country. The deal involves providing 10,000 EVs to Uber ride-share and food delivery drivers, as part of the company’s strategy to become a “zero-emissions platform” in Australia by 2040. The partnership offers Uber drivers and delivery people access to BYD electric cars through flexible and competitive financing options. Initially, the BYD Atto 3 model will be available, with other BYD cars becoming accessible in the future. This partnership aims to make EVs more affordable for Australian drivers, addressing the upfront cost barrier.
Uber plans to introduce more flexible rental and ownership options in early 2024. Currently, drivers can only apply for full ownership or rent the vehicle for a specified minimum period. Dom Taylor, the general manager of Uber Australia and New Zealand, stated that two-thirds of drivers expressed an interest in switching to EVs, but the upfront cost was a significant obstacle. The partnership aims to provide drivers with a range of flexible options that make it easier for them to drive an EV.
Luke Todd, the CEO of EVDirect (BYD’s official distributor in Australia), highlighted the financial savings that drivers can achieve by switching to electric, considering the number of kilometers they drive each day. EV usage on the Uber platform has been steadily increasing, with EVs accounting for over 1.2 million Uber rides in the third quarter of 2023. Meanwhile, Uber announced the launch of Comfort Electric, a fully electric service for its business customers. Initially available in select cities, Uber plans to expand the service in the coming months.
It is important to note that while EVs are promoted as environmentally friendly, the increased demand for lithium mining, the main ingredient in EV batteries, has raised significant environmental challenges. Lithium extraction requires vast amounts of water, putting pressure on already drought-affected regions in the US, Australia, Chile, Argentina, Bolivia, Mexico, Canada, and China. Additionally, some lithium projects involve draining critical groundwater resources for mineral extraction, which can have long-lasting impacts on water supplies. Local communities in these regions have protested against these issues.