- Earlier this month, Uber announced a partnership with Hertz to provide 50,000 Tesla EVs for rent to ride-sharing drivers over the course of the next two years.
- It is anticipated that the pilot program will begin on November 1 in Los Angeles, San Diego, San Francisco, and Washington, D.C., and that it will be expanded to other cities in the United States.
- In a deal announced on Monday, Hertz will purchase more than $4 billion worth of Tesla Model 3 vehicles, totaling 100,000 vehicles.
According to a recent announcement by Uber Technologies, the company will rent Tesla vehicles to its ride-sharing drivers for a flat monthly fee that will include insurance and maintenance costs. The Teslas, which according to Reuters will be "mostly" Model 3 vehicles, will be obtained from the rental giant Hertz. Hertz has just signed a contract to purchase 100,000 Tesla vehicles, which will be added to the company's rental fleet by the end of next year.
Uber had previously stated that it would transition to being a 100% electric vehicle service in the United States, Canada, and Europe by 2030. A Zero Emissions Incentive Program was also established, which rewards drivers who use electric vehicles by paying them $1 more per trip, up to a maximum of $4000 per year. The Teslas will also be eligible to be classified as Uber Green or Uber Comfort rides, for which riders will be charged a premium.
The pilot program will begin on November 1 in Los Angeles, San Diego, San Francisco, and Washington, D.C., with additional cities to follow. Uber said in a statement that Hertz will make a total of 50,000 Tesla vehicles available to Uber drivers by 2023. In the beginning, drivers who rent electric vehicles will be charged $334 per week, which will include insurance and maintenance costs; however, the price will eventually drop to $299 "or lower." To be considered, drivers must have a rating of 4.7 or higher on Uber and have completed at least 150 trips with the company.
Uber already has programs in place to encourage drivers to commute to and from work in electric vehicles. The service's website offers a rebate of $8000 for the purchase of a 2021 Nissan Leaf and a rebate of $6000 for the purchase of a 2022 Nissan Leaf. Uber is also offering $2500 in rebates for the purchase or lease of a 2021 Chevrolet Bolt EV, in addition to any other discounts that the buyer may be eligible for from the Chevrolet dealer or General Motors. Uber drivers can also rent an unspecified electric vehicle from Avis for $260 a week, plus a fee of $65 a week for unlimited charging, for a total cost of $260 per week.
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