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Uber and BYD reveal plans for the company to offer around 100,000 EVs produced by the Chinese automaker to its drivers in several regions.
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The company says it wants to offer “best-in-class pricing and financing” to Uber drivers, starting in Europe and Latin America.
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BYD has been expanding in recent years with its lineup of affordable EVs, including in Europe, with the companies suggesting Canada could be part of their long-term plans.
BYD is no longer completely unknown in North America, with your electrical offers now having arrived in Mexico and South America amid the company’s global push.
And now BYD has teamed up with Uber to bring about 100,000 electric vehicles to a series of regions where Uber operates, starting with Europe and Latin America, and later perhaps even Canada.
The stated goal, according to the automaker, is to reduce the cost of EV ownership for Uber drivers with what it calls “best-in-class pricing and financing,” which could include discounts on insurance, vehicle maintenance and billing.
It also complements Uber’s stated EV transition strategy.
“When an Uber driver switches to an EV, it can provide up to four times more emissions benefits than a regular driver, simply because they spend more time on the road,” said Dara Khosrowshahi, CEO of Uber. “Many drivers also tell us that their first experience with an EV was on an Uber ride, and we’re excited to help demonstrate the benefits of EVs to more people around the world.”
BYD, for its part, notes that Uber drivers are switching to electric vehicles five times faster than private car owners. Despite this, “driver surveys show that EV price and financing availability remain the main barriers to switching,” notes BYD.
But this deal will go unnoticed in America, as BYD models are not sold or leased in the US, at least for now, although the automaker already has an office in the United States. And BYD has yet to formally launch sales in Canada, which could still be hampered by tariff threats.
Additionally, the two companies also plan to cooperate on future BYD vehicles with autonomous capabilities. Therefore, human drivers are not necessarily part of the long-term picture, although Uber may not yet want to incur the costs (and full-time staff) of operating a large robotaxi network.
But SAE Level 4 robotaxis are certainly part of the company’s future strategy.
BYD itself has enjoyed several years of rapid expansion into new markets, becoming one of the most common Chinese brands available outside the Middle Kingdom, while also beginning to challenge other long-standing regional players in their respective markets.
Recent electric models like the Seagull and Dolphin have received industry praise while offering very low entry costs for EV-conscious buyers in several key EV markets.
But one aspect of this deal that has received relatively little attention is the fact that Uber is now increasingly in the business of leasing as well as renting cars to its independent drivers and therefore wants to make money from this deal.
We’re old enough to remember when Uber was content to earn revenue primarily through drivers giving rides to passengers rather than renting cars to drivers. Now, after several unprofitable years –a trend reversed in 2023—Uber continues to transform itself into a leasing company, offering cars through the “Uber platform.”
If BYD manages to sell its cars in Canada and the US without tariffs, or is a different approach needed? Let us know what you think in the comments below.
