Uber Offers Drivers Discounted Electric Vehicles From Japan

The rideshare company wants to achieve net zero emissions by 2040.
Uber Offers Drivers Discounted Electric Vehicles From Japan
An electric Audi sports utility vehicle (SUV) charges at a public Electrify America EV DC fast charger in Los Angeles, California on May 16, 2024. (Patrick T. Fallon/AFP)
Monica O’Shea
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Uber has entered a deal with Car Empire to provide drivers with access to secondhand electric vehicles (EVs) from Japan.

The global giant will offer discounted EVs to Uber Rideshare and Uber Eats drivers in a bid to get more EVs on the market in Australia.

Uber is also keen to reduce climate change emissions in Australia and achieve net zero emissions on its platform by 2040.

The company noted that EVs comprise only 0.6 percent of the second-hand car market in Australia overall.

Drivers from Brisbane and the Gold Coast will have access to affordable EVs on Uber’s vehicle marketplace under the partnership with Car Empire.

In the initial stage, they will offer used Nissan Leaf EVs at a price of $124 (US$80) per week, including a three-year warranty and roadside assistance.

Emma Foley, Managing Director of Uber Australia and New Zealand, said the company was thrilled to have found a partner in Car Empire, who is helping them bring this vision to life.

“For the past several years, we’ve been investing in a range of programs to lower the costs for drivers to transition to electric vehicles, but we’ve always believed a thriving second hand EV marketplace would be a key catalyst to accelerate adoption across our platform,” she said.

David Cosgrove, Director of Car Empire, said the Australian market for used electric vehicles is currently quite limited.

“However, Car Empire, through strategic partnerships, has the unique capability to access a substantial volume of quality used EVs in Japan and import them into Australia,” he said.

“This not only provides consumers with a broader selection but also contributes positively to reducing emissions across the country.”

Electric Vehicle Council CEO Samatha Johnson praised Uber for removing barriers to EV ownership for rideshare and delivery drivers.

“The decarbonisation of Australia’s transport sector is critical to achieving our national emissions targets, and we know the transition to electric vehicles will require whole-of-system collaboration,” Johnson said.

Uber drivers will receive discounts on EV charging via the Uber program and will also save on petrol. This Nissan Leaf car will also be able to qualify for Uber Green and Comfort trips on the platform.

In April, Uber introduced a CO2 Emission Savings tracker tool for passengers to keep track of emissions they have saved by choosing an Uber Green or Comfort Electric ride.

“Just like we popularised rider ratings in an effort to promote respectful behaviour on the platform, we’re excited to introduce Rider Emission Savings so riders can better understand their estimated carbon emissions impact,” Uber said.

Uber Delivers Record Profit

Meanwhile, Uber’s financial results for the second quarter, released on Aug. 6, show a record profit.

Bookings on the platform soared 19 percent year-over-year, with an income from operations of $796 million.

Adjusted earnings before tax, depreciation, and amortisation (EBITDA) jumped 71 percent year-over-year to $1.6 billion.

CEO Dara Khosrowshahi said Uber’s growth engine continues to hum, delivering their sixth consecutive quarter of trip growth above 20 percent.

“The Uber consumer has never been stronger—more people are using the platform, and more frequently, than ever before—while drivers and couriers earned a new all-time high of $17.9 billion over the quarter.”

EVs Make Up 9.4 Percent of New Vehicle Sales in Australia

An Australian government report released on Aug. 3 revealed Australia’s electric vehicle (EV) uptake is rising and the charging network is growing.

The report showed sales made up 9.4 percent of new vehicle sales in the year to the end of April 2024, up from 8.4 percent in 2023 and 3.8 percent in 2022.

Charging infrastructure has also increased to about 900 fast and ultra-fast public EV charging locations available as of the end of March.

“These charging locations support around 2,000 fast and ultra-fast charging plugs and have increased the number of locations available by over 90 percent compared to December 2022,” the strategy said.

The government’s New Vehicle Efficiency Standard (NVES) Bill 2024 (pdf) will come into force from Jan. 1, 2025.

This bill regulates the carbon dioxide emissions of certain road vehicles, by setting emissions targets for cars covered by the standard.

“A person to whom the standard applies in a particular year must ensure that their final emissions value for the year is zero or less. Failure to achieve this may result in a civil penalty,” the law states.

Monica O’Shea is a reporter based in Australia. She previously worked as a reporter for Motley Fool Australia, Daily Mail Australia, and Fairfax Regional Media.
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