Uber Technologies, Inc. (NYSE: UBER) and BYD Co. Ltd. (OTC: BYDDY) announced a multi-year strategic partnership to add 100,000 new BYD electric vehicles to the Uber platform in key global markets.
Starting in Europe and Latin America, the partnership will provide drivers with competitive pricing and financing for BYD vehicles on the Uber platform and will later expand to the Middle East, Canada, Australia, and New Zealand.
The companies aim to lower the total cost of EV ownership for Uber drivers, boost global EV adoption on the Uber platform, and provide millions of riders with greener transportation options.
The partnership may include discounts on charging, maintenance, and insurance to aid Uber drivers in switching to electric vehicles and offer tailored financing and lease options based on market needs. The companies will also work together on future BYD autonomous-capable vehicles for the Uber platform.
Dara Khosrowshahi, CEO of Uber, said, "When an Uber driver makes the switch to an EV, they can deliver up to four times the emissions benefits compared to a regular motorist, simply because they are on the road more. Many riders also tell us their first experience with an EV is on an Uber trip, and we're excited to help demonstrate the benefits of EVs to more people around the world."
Last week, the California Supreme Court upheld Proposition 22, affirming the decision for the rideshare companies to consider drivers as independent contractors.
UBER stock rose over 30% in the last twelve months. Investors can gain exposure to the stock via IShares Trust IShares U.S. Transportation ETF (NYSE: IYT) and Franklin Disruptive Commerce ETF (NYSE: BUYZ).
Price Action: UBER shares are up 2.69% at $64.79 at the last check Wednesday.