Uber is expanding ride-hailing giant Comfort Electric, a premium electric vehicle, into 14 new markets in the United States and Canada. A total of 40 North American market customers can now book flashy, eco-friendly rides.
Eligible luxury EVs include Tesla Models S, 3, X, Y, Polestar 2, Ford Mustang Mach-E, Audi e-Tron, Porsche Taycan and Hyundai Ioniq.
This expansion is in line with Uber’s goal of becoming a zero-emissions mobility platform by 2030 in the United States, Canada and Europe. That goal is driven in part by his 2021 California ruling that ride-hailing services must be electric by 2021. So far, only 4.1% of miles traveled in the US and Canada have been driven by electric vehicles, luxury or not. Uber didn’t provide his TechCrunch with a specific percentage of rides made by EVs in California.
Uber said its partnership with Hertz to rent Tesla vehicles to drivers in more than 30 cities in the U.S. and Canada is helping accelerate EV adoption among U.S. drivers. Already, he has nearly 50,000 drivers renting Tesla vehicles through the program and completed more than 24 million electric trips. the company said.
Uber expanded its partnership with Hertz to Europe in January, making up to 25,000 Tesla and Polestar vehicles available to drivers by 2025, launching in London, Paris and Amsterdam.
Uber also offers Uber Green to its riders. It offers access to travel powered by hybrids or less flashy EVs, the world’s standard Nissan Leafs and Chevy Bolts.
Uber will launch Comfort Electric in May 2022 in Los Angeles, San Francisco, San Diego and Dubai. New markets opening Thursday include Detroit, Indianapolis, Jacksonville, Minneapolis-St. Paul, Montreal (Canada), Nashville, New Orleans, Orlando, Palm Springs, Phoenix, Pittsburgh, Salt Lake City, Tampa Bay, Toronto (Canada).
A spokeswoman told TechCrunch that Comfort Electric’s ride prices are typically somewhere between Uber Comfort and Uber Black. As a bonus, Uber is offering passengers up to 25% off two of his Comfort Electric rides from April 11-30 with code GOELECTRIC.
Switching to electrification of drivers
According to Uber, the number of EV drivers on its platform has quadrupled in the past year, with nearly 38,000 active EV drivers recorded in the US, Canada and Europe in the third quarter of 2022 (Europe , which may be the majority of drivers using EVs). However, the company still has a long way to go before it can achieve 100% zero emissions for his vehicles. That goal is compounded by the fact that Uber drivers are independent contractors rather than employees, so they have to buy EVs out of their own pocket.
Federal EV tax incentives under the Inflation Reduction Act promise drivers up to $7,500 in rebates, but most EVs, especially luxury EVs, are still expensive. According to the Kelley Blue Book, the average price of an EV at the end of 2022 was $61,488, compared to his $49,507 for all cars and trucks.
Some drivers who buy luxury cars feel the pain of high upfront costs and low incomes. Notably after Uber revealed this week that it increased his CEO Dara Khosrowshahi’s total compensation by 22% last year to $24.3 million for him, his base salary is $1 million, about $14 million. $6 million in stock awards, $6 million in options, $2.9 million in bonuses, and $170,000 in other compensation for personal travel and security.
Uber has invested $800 million in resources to help drivers make the switch by 2025. The company offers the driver $1 for each trip he completes in an EV, capped at his $4,000. They can buy cheaper EVs and cut costs by not using gas. The company has also partnered with Truecar to offer drivers rewards worth up to $2,000. Drivers in certain markets can also rent or lease EVs at discounted rates from Hertz, Avis, Ford, Drive Sally, Hive, Zevvy and HyreCar.
Uber also says drivers are eligible for discounts on EVgo charging, with Wallbox chargers getting $100 off, plus $100 off installations. The company recently updated its driver app to show the driver the location of his nearest EV charger.
