Uber putting A$26m into Australian EV market

Uber will invest A$26million in Australia’s electric vehicle market.

The investment consists of a 50% service reduction fee from July 1 (from 25% to 12.5%) for driver-partners using battery electric vehicles (BEVs) on the platform until June 30, 2025.

The total amount will be capped at A$3500 annually per driver.

It’s part of Uber’s global commitment to becoming a zero-emissions mobility platform by 2040.

Australia still lags the rest of the world with EVs still only representing 0.7% of the million cars sold in Australia annually (compared to the UK’s 11%).

Uber’s initiative seeks to address the low uptake, in turn making EVs more mainstream across its platform and the wider industry.

This service fee reduction will be limited to the first 2500 driver-partners who either already drive a battery electric car on the Uber app or are new driver partners who upload a BEV to Uber’s platform, and continue to take EV trips.

Uber’s announcement supports the new Albanese-led federal government’s commitment to accelerating EV adoption and follows the success of a year’s trial to reduce service fees by 50% for EV drivers across the platform.

The trial included more than 378,000 EV trips, EV driver-partners on the platform increasing four times nationally, monthly EV trips increasing nearly five times nationally, saving about 502 tonnes of CO2 (the equivalent of planting 16,000 trees) and an average saving of A$5500 for EV driver-partners from a combination of service fees and fuel savings.

“At Uber we believe the future of transport is shared and electric and we are committed to accelerating the adoption of electric vehicles in Australia,” says Uber Australia and New Zealand rides general manager Dom Taylor.

“This investment is about providing incentives to help driver partners make the switch to electric, and the results from the past year have been phenomenal.

“So we know this approach is producing results and we also know that driver partners want the program extended.  We want to do our bit – we’ve listened to them and have extended this initiative for another three years.”

Taylor says one EV on the Uber platform can help the equivalent of 100 riders a month get from A to B, with rideshare drivers realising three to four times greater emissions savings compared to average car owners.

 “We want to work with governments, vehicle manufacturers and key stakeholders in the industry to accelerate the rate of EV adoption across Australia so that together we can create a more sustainable transport future.”

New South Wales treasurer and energy minister Matthew Kean says governments and the private sector need to work together to achieve net zero by 2050.

“A key part of this is ensuring that we accelerate the use of more sustainable transport options. It’s great to see big businesses like Uber invest heavily in the industry and this initiative will help to incentivise the uptake of electric vehicles with rideshare drivers in a cost-effective way,” Kean adds.

“NSW has a nation-leading EV strategy and our commitment to tax reform and government rebates, together with support from private companies, will lay the foundation for an EV revolution across the state.”

 Electric Vehicle Council chief executive Behyad Jafari says Australians understand that EVs help clean the air, cut carbon emissions, and reduce dependence on imported oil, meaning they are keen to see more on Australian roads.

“What we know is the best way to support people going electric is to take a ride in or drive one,” he adds.

“Once you experience the performance of an electric car, there’s no going back. That’s what makes Uber’s initiative so great – not only will it help drivers go electric, but it will provide riders with an opportunity to experience new sustainable innovation.”