Uber Partners With Chinese Automaker to Offer 10,000 EVs to Australian Drivers

The Uber logo is seen at the Skirball Center in Los Angeles, California, on May 8, 2018. (Robyn Beck/AFP via Getty Images)

Uber has stepped up its net zero transition in Australia by striking a deal with Chinese automaker Build Your Dreams (BYD) to increase the presence of electric vehicles (EVs) in the country.

On Oct. 25, Uber Australia announced a partnership with BYD to provide 10,000 EVs to its ride-share and food delivery drivers.

This deal represents Uber’s latest effort in the company’s strategy to become a “zero-emissions platform” in Australia by 2040.

How the New Deal Works

Under the agreement, Uber drivers and delivery people can get access to BYD electric cars via a number of “flexible and competitive” financing options.

At present, drivers can only apply for full ownership of the vehicle through a longer-term financing arrangement or rent it for a specified minimum period.

However, Uber has announced that more flexible rental and ownership options will be available in early 2024.

The partnership initially offers the BYD Atto 3 model to program participants, with the option for drivers to access other BYD cars when they become available in Australia.

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Dom Taylor, the general manager of Uber Australia and New Zealand, said the new agreement with BYD would make EVs more affordable for Australian drivers.

“Two-thirds of drivers have told us they want to make the switch to an EV, but the number one barrier to doing so is the upfront cost of the car,” he said in a statement.

“Through our new partnership with EVDirect, we are addressing that challenge head-on.

“Our goal is to provide drivers and delivery people a range of flexible options that make it easier than ever to get behind the wheel of an EV.”

A BYD Seal U electric car at the IAA Mobility 2023 international motor show in Munich, Germany, on Sept. 6, 2023. (Leonhard Simon/Getty Images)

Furthermore, he noted that in the third quarter of 2023, EVs accounted for over 1.2 million Uber rides, with the number of EVs operating on the platform increasing to around 2,400 from less than 100 in 2021.

Meanwhile, Luke Todd, the CEO of EVDirect, the official distributor of BYD in Australia, said the EV program would help drivers save money.

“We’ve created flexible financing options as well as easy charging options, and we know drivers will reap the benefits of the cheaper operational costs of an EV,” he said.

“What excites me the most is the amount of money drivers and delivery people can save by switching to electric, given the number of kilometres that they drive each day.”

The CEO also said it was the perfect time for Uber drivers and delivery people to transition to EVs, given the current record-high fuel prices.

New Fully Electric Uber Service

At the same time, Uber announced the launch of Comfort Electric, a fully electric service for its business customers.

From Oct. 25, Uber for Business customers in Sydney, Melbourne, Perth, Brisbane, the Gold Coast, and Adelaide can request a ride with drivers who own an EV.

While the initial rollout is only available to a small number of customers, Uber plans to expand the service in the coming months.

Along with the new ride option, Uber introduced a “sustainability insights dashboard” on its app, which the company said would help corporate users keep track of their carbon emissions data.

Huge Environmental Impacts of EVs

While big companies and climate change activists are pushing for more EVs to “protect the environment,” many areas worldwide are facing significant environmental challenges due to increased lithium mining activity caused by rising demand for EVs.

Currently, lithium, the main ingredient of EV batteries, is primarily extracted from heavily drought-affected or arid regions of the United States, Australia, Chile, Argentina, Bolivia, Mexico, Canada, and China.

As the lithium extraction process consumes around 500,000 gallons (1.9 million litres) of water for each metric ton of mineral extracted, there is massive pressure on the water supply in those regions.

Furthermore, many lithium projects require the draining of critical groundwater to extract the minerals from the ground, which could deprive those areas of essential water resources for decades or even centuries.

The water issues have sparked fierce protests from local communities in many countries where lithium projects are operating.