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Business & Finance

Uber goes green by increasing fare to help drivers upgrade to electric vehicles

Aiming to go more green, ride-hailing service Uber is slightly increasing its rates in London that will help Uber d
Published January 15, 2019

Aiming to go more green, ride-hailing service Uber is slightly increasing its rates in London that will help Uber drivers to upgrade their normal cars to electric ones.

Uber is adding new ‘clean air fee’ for Londoners that will charge customers a bit extra to help Uber drivers switch from fossil fuel burning cars to more eco-friendly electric ones.

Londoners will have to pay extra 15 pence per mile under the company’s new Clean Air plan. An average trip in London is about three miles, so riders can expect to pay extra 45 pence for every ride. The extra fare will go towards the switching of electric versions, with the goal of having all cars on the app be fully electric in London by 2025, as per The Verge.

Uber said that the amount of money the drivers will receive toward the cost of an electric vehicle will be based on the number of miles they have driven on the app. For instance, if a driver using the Uber app for an average of 40 hours a week, he could expect around £3,000 ($3,865) in two years and £4,500 ($5,787) in three years.

“We want to partner with the cities we serve and are proud to play our part in tackling London’s air pollution. Over time, it’s our goal to help people replace their car with their phone by offering a range of mobility options — whether cars, bikes or public transport — all in the Uber app,” said Fred Jones, director of Uber in London.

Once a driver upgrades to an electric car, the clean air fee will go toward supporting the driver’s vehicle costs. According to Uber, it foresees raising over £200 million ($257 million) for supporting drivers transitioning to EVs over the next couple of years. An estimated 20,000 drivers are expected to upgrade to EVs by end of 2021.

The new fee will come into effect from January 16, however, a spokesperson informed that the Clean Air fee is only exclusive to London for now.

Copyright Business Recorder, 2019

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