Uber’s $7.5m to accelerate NZ EV adoption

Uber has announced a $7.5 million investment to accelerate New Zealand’s EV transition with a new EV subsidy programme for drivers.

Starting July 1, drivers with fully electric vehicles in NZ cities where Uber is available will be eligible for a 50% service fee discount up to $5000 per year over two years (for the first 750 eligible drivers).

Promoting transition for high kilometre users, like rideshare drivers, can have an outsized impact in accelerating the transition to zero-emission transport, Uber says.

It adds that 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,” says Uber ANZ managing director Dom Taylor.

”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,” he adds.

“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 Uber’s product offer.

One of the main barriers to stronger EV uptake in New Zealand is the upfront cost of the vehicles when compared to a more affordable secondhand hybrid, says Uber.

The 50% service fee discount will further improve the total cost of ownership for EV drivers, making them a more attractive option, it explains.

To understand the barriers facing rideshare drivers transitioning today, Uber built a rideshare-specific total cost of ownership (TCO) model comparing internal combustion engines (ICE), petrol hybrids and battery electric vehicles (BEV)s.

“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,” Uber says.

“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 programme,” it adds.

“While these steps are incremental, we believe they are the right thing to do for drivers,consumers, and cities,” says 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.