Uber & Lyft are required to use 100% electric by 2030 in New York City

By 2030, Uber and Lyft will be required to use electric vehicles. Even faster could be achieved by the companies.

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Mayor Eric Adams announced on January 26 that Uber and Lyft must operate zero-emission electric vehicles only by 2030 in his State of the City address. App-based ride-hailing is a major market in New York City.  Approximately 100,000 for-hire vehicles could be affected by the mayor's new policy initiative.

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Electrifying the city's fleet of vehicles while installing charging infrastructure in all five boroughs will build on efforts his administration has already made to electrify it. In an interview with The Verge, the mayor said he plans to implement his plan through the city's Taxi and Limousine Commission, which oversees the for-hire vehicle industry, which includes Uber and Lyft.

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The EV initiative in this city is supported by both Uber and Lyft, which usually oppose new regulations that affect their business models. In a statement, Lyft's director of sustainability, Paul Augustine, said, "We are excited to partner with New York City." A city-wide electric transition will be accelerated by New York's commitment, and we look forward to working with the TLC to establish an ambitious clean-mile standard.

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In a statement, Uber's senior director of policy Josh Gold lauded the Mayor's ambition for reducing emissions. We've made real progress toward being the first zero-emissions mobility platform in North America, but we've got a long way to go."

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There will be an electric version of Uber and Lyft

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By partnering with rental car companies like Hertz or authorizing higher fares for EV drivers, both companies are already incentivizing their drivers to switch to electric vehicles. According to both Uber and Lyft, they aim to have one hundred percent of their fleets electrified by 2030, so the city's new policy shouldn't impact them too much - unless they fail to achieve their goals. By the end of this decade, the city mandate will motivate them to use only electric cars.

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The Verge points out that switching millions of Uber and Lyft drivers to electric vehicles will not be easy. Many ride-hailing drivers use their personal vehicles to drive for more than one gig economy company. They are classified as independent contractors. Additionally, electric vehicles tend to be more expensive than gas vehicles, despite their lower fuel and maintenance costs. Many drivers who operate on extremely tight margins may find making the switch challenging because of the steep upfront cost.

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All-electric ride-hailing is not a new requirement in New York. A few years before the state expects to completely prohibit the sale of new gas cars in 2030, California adopted new regulations that require ride-sharing companies to electrify their fleets by 2030.

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Vehicles are being designed by Uber

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Several automakers are working with Uber to develop EVs that will be designed specifically for rideshare and delivery, Uber CEO Dara Khosrowshahi said in January. Electrifying Uber's entire fleet by 2040 is part of the company's long-term goals.

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Can you describe the characteristics of these purpose-built cars? For a ride-hailing or delivery vehicle, acceleration and top speed are not the most important factors. Off-road capability and nimble handling are also important. Comfortable seating and ease of access are priorities for ride-hailing services. It is also preferred by customers to have seats facing each other so that passengers can communicate easily. In addition to being more efficient at carrying multiple passengers, cars with a lower top speed should cost less to manufacture.

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Vehicles with cargo capacity that can negotiate urban congestion are high on the wish list of delivery vehicles. In addition to providing more mobility, Uber envisions using two- or three-wheeled vehicles that can store packages and groceries. Prior to this announcement, Arrival, a UK-based electric vehicle startup, announced a partnership with the company to create custom ride-hailing cars. A design teased by Arrival might be a good indication of what the company is looking for.

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The company plans to build an electric vehicle specifically designed for ride-hailing service in partnership with Uber in the UK, Reuters reported. In other words, there were likely to be big doors, plenty of headroom and cargo space, a range of approximately 250 miles, and few frills. It will be an affordable, purpose-built electric vehicle that will be available in the fourth quarter of 2023, Arrival and Uber said in a joint statement. There is no chance of that happening. As Arrival struggles to stay afloat financially, TechCrunch reports it has cut its workforce in half, so it doesn't appear that the Uber/Arrival partnership will bear fruit anytime soon.

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With more than $188 million raised to help its drivers upgrade to electric vehicles in London by 2025, Uber plans to be a fully electric mobility platform by then. Uber's northern and eastern Europe regional manager Jamie Heywood said, "Our focus now is to encourage drivers to use this money to upgrade to an electric vehicle." As soon as Covid restrictions are lifted in the UK, Uber plans to hire 20,000 more drivers.

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The Uber app has recently expanded its ability to offer customers the option of riding in an electric car in two dozen US cities. Through a deal with Hertz, the company also offers its drivers the option to rent Teslas or Polestars. The Uber Driver app now includes an "EV Hub" where drivers can find out more about EVs, and how to take advantage of financial incentives. EVs are also more cost-effective than conventional cars, as they have a lower cost of ownership.

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Here are the key points

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Up to 100,000 electric cars could be added to the streets of New York City under the city's policy, replacing conventional vehicles powered by internal combustion engines. In my opinion, it is encouraging to see both Uber and Lyft embracing the new policy. Inexorably forward is the EV revolution in yet another instance. Working together for the common good is a nice thing when governments and corporations do so.