Uber strikes electric vehicles deal with Chinese Tesla rival BYD

By Alagbe Shenayon On Aug 1, 2024

Uber has announced a deal to integrate 100,000 electric vehicles (EVs) from China’s BYD into its global fleet.

Under the agreement, Uber and BYD will provide incentives to drivers who switch to electric cars, including discounts on maintenance, charging, financing, and leasing.

The multi-year partnership will initially be launched in Europe and Latin America, with plans to expand to the Middle East, Canada, Australia, and New Zealand.

This announcement comes amid a global slowdown in EV sales and increased import charges for Chinese car makers in markets such as the US and the European Union.

“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 in a statement.

They also announced plans to integrate BYD’s self-driving technologies into Uber’s platform.

Earlier this year, Uber revealed that it was collaborating with Tesla to encourage EV adoption among its US drivers and intended to develop a dedicated EV with South Korean automaker Kia.

Recent tariff increases on China-made EVs by the US, the European Union, and other major markets aim to protect local automotive industries.

This has led BYD and other Chinese EV manufacturers to expand their production facilities outside of China.

In July, BYD secured a $1 billion (£780 million) deal to establish a manufacturing plant in Turkey.

The new facility will have an annual production capacity of up to 150,000 vehicles and is expected to create approximately 5,000 jobs, with production slated to begin by the end of 2026.

Last month, BYD also inaugurated its first EV plant in Southeast Asia, located in Thailand. This plant will produce 150,000 vehicles annually and is projected to generate 10,000 jobs.

At the end of last year, BYD announced plans to build its first passenger car factory in Europe, located in Hungary, which is expected to create thousands of jobs.

The company is also planning to construct a manufacturing plant in Mexico.

Backed by veteran US investor Warren Buffett, BYD is the world’s second-largest EV manufacturer after Tesla.