Currently reading: Analysis: the scramble to provide Uber with EVs

Ride-hailing firm’s 2025 EV-only plan attracts established brands, the Chinese and start-up Arrival

Uber’s decision to become electric-only in London by 2025 has created a scramble among car makers to secure the business of some 45,000 drivers who will soon have no choice but to dump their hybrids if they want to continue working for the American private-hire-vehicle-hailing company.

However, it’s not just the usual industry players angling for custom: also making a pitch will be Chinese EV giant BYD and nascent British EV maker Arrival, which both see ride-hailing as a unique way into the UK car market.

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The race is already starting. No new car with a combustion engine, whether it’s a hybrid or not, can be registered for private hire in London now. Uber says that 3.5 million trips have been undertaken in EVs (users can now specify one if they wish), and as part of its Clean Air Plan, the firm has launched a scheme to funnel cash into cheaper EV leasing to help its drivers switch over.

Uber says its vehicles are currently between four and five years old on average, and it admitted in a paper published last year that “most ride-hail drivers drive second-hand”. Uber wouldn’t say what its most popular car is, but the image of a reliable, frugal and slightly dog-eared Toyota Prius has become the symbol of a private-hire ride in the capital.

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But with Uber’s commitment to an electric future pushing its drivers to buy new for the first time, car makers both established and new have spotted an opportunity to scoop up buyers in the firm’s biggest market – especially as Toyota is late to the EV scene. In April, Hyundai signed a deal with Uber across Europe to offer drivers “discounted access” to its Ioniq Electric and Kona Electric models.

This followed Nissan offering 2000 examples of its Leaf hatchback to London’s Uber drivers at a discounted rate.

Some 1600 of the cars available to be hailed on the Uber app are now electric, with the Leaf, Kia e-Niro and Kona Electric the most popular.

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Uber cars aren’t acquired through fleet deals: its drivers in this country are classified as workers, rather than full employees, so must buy or lease their own cars. This fact, combined with the scarcity of used EVs, means newcomer firms sense an opportunity.

Arrival is best known for developing an electric van, but now it wants to target Uber drivers and has signed a deal with the company to get access to driver data to aid development of an all-new car. This will be launched in just in two years’ time, Arrival has promised.

“The Prius wasn’t designed from scratch for this use case,” Arrival senior vice-president Tom Elvidge (a former manager at Uber) told Autocar.

Arrival’s electric car will offer a “command” driving position for good visibility, lots of comfort and a host of other changes. “I believe that dozens, if not hundreds, of minor improvements will culminate to make the whole experience completely different,” said Elvidge.

Arrival’s drawings show an interior layout with a stowable front passenger seat, but it insists that it isn’t moving into the territory of the dedicated London taxi made by LEVC.

“The typical Uber driver also uses their car on their personal time, so really pushing too far onto the side of professional use can be a limiting factor,” explained Elvidge.

Arrival plans to build its Uber car in the UK using its ‘micro-factory’ small-scale production techniques – but it had better keep an eye on the final price.

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“First and foremost with ride-hail drivers, it comes down to money in the pocket,” said Peter O’Rourke, global head of marketing for Splend.

This Australian ride-hailing company recently set up shop in London to offer its rent-to-buy scheme to drivers who use not just rival Uber but also apps from Bolt, Freenow and others that pay out for deliveries of packages and food.

Splend current offers the Ioniq Electric, the e-Niro and the MG 5 SW EV estate. Top of the three is the e-Niro in terms of design, according to O’Rourke. “It’s a knockout because of its size and shape, with lots of head room and leg room,” he explained. “In the back of the Prius, your knees are around your ears.”

But drivers also like the 5 SW EV for its space, value and long range. At 276 miles, it can drive for two days without charging on the average Uber driver’s daily tally of 120-150 miles.

China could be a good source of good-value EVs beyond the MG estate. Indeed, Splend is currently in talks with BYD to import its EVs into London specially for ride-hailing use.

O’Rourke didn’t mention any models, but the Chinese firm aims its E6 electric crossover, which has a claimed 250-mile range, at taxi drivers.

“Ultimately, Chinese car manufacturers are making [electric] cars cheaper, which means we can purchase them cheaper and provide them to our drivers cheaper, which means more money in their pocket,” explained O’Rourke.

However, any Chinese that do arrive in Britain – and indeed our own Arrival – will have to compete with established marques, and not just on price.

“If you’re an Uber driver, you know the brand Toyota. You trust it. It’s your livelihood,” said O’Rourke. “Getting people to make this switch is hard.”

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Where will Uber drivers charge?

Finding space for 45,000 private-hire cars to charge daily in London come 2025 isn’t going to be easy, but Uber is working on solutions.

The firm has secured a deal with BP Pulse to offer drivers cheaper charging subscriptions – although the size of the saving depends on how highly the driver has been rated by their passengers. Drivers with Blue status pay the standard rate, with discounts kicking in for Gold, Platinum and Diamond – those rated 4.85 or more out of five.

BP Pulse is also building a series of rapid-charging hubs to serve “professional EV drivers” across central London, with the first in Park Lane. The cost to charge for Uber drivers is 29p per kWh, with free parking for an hour. Uber has said it will also provide its drivers discounts on home chargers supplied by BP Pulse, Podpoint and EO. And it has promised to invest £5 million to provide on-street charging “near where drivers live” in conjunction with London borough councils.

Nick Gibbs

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ac555 2 July 2021
The opportunity lost by Toyota's utterly hopeless management is staggering
soldi 1 July 2021

Perfect opportunity for hydrogen fuel cell products - BMW, Hyundai, JLR and Toyota must be strong candidates

bol 1 July 2021

Good. A few years ago someone would have been along in a minute to say the grid won't cope and "hydrogen". Now I wonder if it'll be "where am I going to charge if all those Uber drivers are hogging the free charging spots?". Still progress.