Uber Technologies (UBER.N) announced on Monday it will introduce electric vehicles (EVs) in India for ride-sharing, its first move to adopt clean vehicles amid an Indian government drive for higher electrification of public transport and shared mobility.
With plans to introduce 25,000 EVs over three years, Uber is boosting competition with local rival BluSmart, an electric mobility start-up funded by BP’s (BP.L) venture fund, which is leading in India’s electric taxi space.
Uber’s fleet partners will purchase the EVs from Tata Motors (TAMO.NS), India’s largest electric carmaker, Prabhjeet Singh, president, Uber India and South Asia, said during a phone interview on Monday.
“When you’re looking at great transitions, you also don’t want to rush into those without necessarily fully appreciating the economics and trade-offs,” Singh told Reuters.
Tata Motors also supplies EVs to BluSmart.
For electric ride-hailing to thrive, Singh said numerous factors need to come together. Automakers need to make cheaper cars with a long range, charging infrastructure has to be widespread, and the financing ecosystem needs to mature.
“We believe we are beginning to see early signs of that coming together,” Singh said, adding that this is the biggest deal for EVs by a ride-sharing company.
Even with 25,000 EVs, electric cars will still be a percentage of Uber’s current overall active fleet of 300,000 cars in India, according to Singh.
Uber has set a 2040 goal for 100% of its rides to be in zero-emission cars, public transport, or with micro-mobility, including in India.
Buy Crypto NowThe Softbank Group-backed (9984.T) ride-hailing titan is in “active” talks with other automakers, fleet operators, charging companies, and financiers for its EV push, Singh added.
Tata’s rival Mahindra & Mahindra (MAHM.NS) is the only other Indian carmaker to produce electric cars locally. China’s BYD (002594.SZ) and SAIC’s (600104.SS) MG Motor also supply imported EVs in India.
“We are going to be a big catalyst in accelerating the (EV) ecosystem,” Singh said.
