Ride-hailing group Uber Technologies (UBER) has done a U-turn and is paying its drivers $4,000 to make the switch to electric vehicles.
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Uber said the $4,000 grant program is part of the rebranding of its “Uber Green” service to “Uber Electric.”
Uber passengers are also being offered a 20% discount to mark the rebrand if they choose electric rather than fossil-fueled wheels.
Electric Drive
The new grants, branded “Go Electric,” will provide eligible drivers with the cash to buy new or used EVs in states including California, New York, Colorado and Massachusetts.
The incentive will help Uber to reach its target of offering zero-emission rides by 2040. Even before that it wants to be completely carbon neutral in North America and Europe by 2030.
That target has come under threat after the arrival of oil and gas friendly President Trump into the Oval Office. As part of this a $7,500 federal tax credit for new electric vehicle purchases, introduced during President Joe Biden’s term expired last month. That has made EVs costlier for buyers.
Back in 2020 when it first announced the carbon-free pledge, according to the Verge, Uber said it wouldn’t directly pay drivers to ditch their gas-burning vehicles in favor of EVs. However, nerves over that target have made such a move necessary.
Charging Higher
Earlier this year, Uber shifted its Uber Green service in the U.S. to an all-electric model, moving away from the mix of hybrids and fully electric vehicles.
Uber said more than 200,000 EVs are now on its platform globally, with drivers in the U.S., Canada and Europe going electric up to five times faster than other motorists. One in four riders reported their first EV experience was through Uber as its overall numbers continue to surge – see below:
Uber is also expanding its battery-aware matching feature to more EV brands. This filters trip requests based on an EV’s battery level so drivers can accept trips that end near a charger or avoid trips that are too long for their battery. This helps ease any ‘range anxiety’ fears both drivers and passengers may have.
The feature is now launching in 25 countries including the US, Canada, and Europe and supports EVs from makers such as Ford (F) and Nissan (NSANY).
Is UBER a Good Stock to Buy Now?
On TipRanks, UBER has a Strong Buy consensus based on 29 Buy and 4 Hold ratings. Its highest price target is $150. UBER stock’s consensus price target is $109.91, implying an 18.14% upside.
