Uber is offering $4,000 grants to help drivers switch from gas-powered cars to electric vehicles as it races to meet its goal of having all rides powered by EVs by 2030. The company is also dropping the “Uber Green” name and rebranding it as “Uber Electric.”
Uber plans to become completely carbon neutral in North America and Europe by 2030, and worldwide by 2040. When the company first made this promise in 2020, it said it would not pay drivers directly to switch to electric cars. Now, that has changed. The new grants are meant to speed up the move to EVs, especially as federal incentives in the US have expired.
The end of the $7,500 federal EV tax credit is expected to hurt electric car sales, which could make it harder for Uber drivers to afford the switch. Uber’s new grant aims to fill that gap and help drivers offset their costs.
At first, only drivers in New York City, California, Colorado, and Massachusetts will be able to apply for the $4,000 incentive under Uber’s new “Go Electric” program. With additional state and local rebates, such as Massachusetts’ MOR-EV and Colorado’s Clean Fleet Program, drivers can lower the price of their EVs even more. The grant amount is the same as the recently expired federal credit for used electric cars, showing Uber’s effort to keep costs manageable for its drivers.
Uber’s journey toward a greener platform hasn’t been smooth. Back in 2021, Hertz announced plans to buy 100,000 Teslas and 65,000 Polestars to rent to Uber drivers. However, due to the high depreciation costs, Hertz ended up selling most of those cars. Despite the setback, Uber continues to expand its EV partnerships. Last year, it teamed up with Chinese automaker BYD to bring 100,000 electric cars to Europe and Latin America. According to Uber, there are now around 200,000 EV drivers on its platform worldwide.
Still, moving all Uber drivers to electric vehicles won’t be easy. Since drivers are independent contractors and often use their own cars, Uber can’t require them to buy EVs. And while electric cars are cheaper to run and maintain, their high upfront prices remain a big challenge for many drivers who operate on thin profit margins.
Earlier this year, Uber confirmed that Uber Green would now only include fully electric cars. Previously, it included both hybrid and electric vehicles and offered a small bonus per trip for eco-friendly rides. Under the new Uber Electric name, riders can get up to 20 percent off their fare, or as much as $8, using the promo code GOELECTRIC20 for a limited time.
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Uber is also improving its “battery-aware” trip-matching feature, which helps drivers plan rides based on their car’s battery charge. It lets drivers avoid long trips or choose routes that end near a charging station. This feature will now be available in 25 countries across the US, Canada, and Europe, and will support more EV brands, including Kia, Hyundai, Ford, Nissan, Volkswagen, and Mercedes-Benz.
