BYD Set to Enter Ride-Hailing Space in New Uber Deal
US-based ride-hailing company Uber has made public a new deal with Chinese electric vehicle manufacturer, BYD. According to the BBC, the Uber BYD deal will see Uber add 100,000 Chinese-manufactured electric cars to its fleet of cars globally.
The two companies said they will incentivize Uber drivers to switch to electric vehicles. Some of the incentives the companies will be offering include discounted charging, maintenance, leasing, and financing.
Multi-Year Agreement
The Uber BYD EV deal involved signing of a multi-year agreement between the two companies. The agreement provides for a phased roll-out plan of EV cars by Uber. In the first phase, Uber will focus on the European and Latin America countries.
Phase two will see the ride hailing company introduce EV taxis in the Middle East, Australia, New Zealand, and Canada. The Chinese giant EV deal comes at a time when electric vehicle sales have dipped globally. However, a recent report showed that BYD could beat Tesla in EV battery production and sales this year.
Ownership Cost
In a statement released by the two companies, the Uber EV deal with the Chinese giant will make it easier for Uber drivers to own electric vehicles.
“The companies aim to bring down the total cost of EV ownership for Uber drivers, accelerating the uptake of EVs on the Uber platform globally, and introducing millions of riders to greener rides,” the two firms said.
Additionally, the two firms will work on integrating BYD’s self-driving technologies into Uber’s platform.
Challenge with Tariffs
Early this year, Uber announced that it was partnering with Tesla to boost EV adoption among its taxi drivers within the U.S. The taxi-hailing company also planned to partner with South Korean vehicle manufacturer Kia to develop a purpose-built electric vehicle.
The BYD Uber deal happened at a time when Chinese EV makers are facing higher import charges in the European Union and the U.S to protect their car industries. This move prompted Chinese EV manufacturers to establish production facilities outside China.
Rapid Expansion
Last month, BYD announced that it would be establishing a $1 billion manufacturing plant in Turkey. The plant will have an annual production capacity of 150,000 EV vehicles. It is expected to create 5,000 jobs with production scheduled to commence by the end of 2026. BYD also opened an electric vehicle manufacturing plant in Thailand with the same production capacity.
The Thailand plant, which is the first in South-East Asia, is expected to create 10,000 jobs. Besides these plants, BYD already announced plans to set up the first passenger vehicle factory in Europe.
This factory, which will be located in Hungary will enable BYD to sell electric vehicles within the EU without paying additional tariffs. Backed by Warren Buffet, BYD is the second-largest electric vehicle in the world after Tesla.
