Uber Is Increasing London Fares To Help Fund EV Development

Uber will make ride-hailing in London more expensive by 15 pence (20 cents) per mile in order to create a 200 million pound ($260 million) fund aimed at helping its drivers make the switch from internal combustion engines to electric vehicles.

According to Uber CEO Dara Khosrowshahi, the money “would not accrue to the benefit of Uber,” but would end up in an individual savings account for each driver.

This new fund is part of Uber’s plan to only operate EVs on London roads by the year 2025, although the availability of affordable electric models remains a challenge for the company, stated Khosrowshahi, while also adding that Uber is currently engaged in talks with automakers to provide EVs, while working with charging companies like BP’s Chargemaster, reports Automotive News Europe.

Uber Europe boss Jamie Heywood stated that an average driver working 40 hours per week over three years “could expect to save 4,500 pounds on the cost of an EV.” He also added that when a driver upgrades to an EV using that new fund, “they are completely free to work whenever and wherever,” and that “there are no obligations” to only use the vehicle for Uber-exclusive journeys.

So if a driver stops working for Uber before being able to take advantage of the fund, the money will subsequently be spent on other clean air initiatives and will not be pocketed by the company.

This announcement comes just as Uber is looking to appeal a court ruling saying that its drivers should be entitled to benefits, including overtime and a paid vacation.