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Uber Raises Rates in London to Set Up Driver EV Fund
Ride-hailing service Uber Technologies Inc. says it is raising its rates in London by 20 cents per mile to pay its drivers in an effort to make it easier for them to switch to electric vehicles.
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Ride-hailing service Uber Technologies Inc. says it is raising its rates in London by 20 cents per mile to pay its drivers in an effort to make it easier for them to switch to electric vehicles.
The scheme is part of Uber’s goal to deploy only electric vehicles in London by 2025. CEO Dara Khosrowshahi tells reporters the fees will be used to create £200 million ($258 million) to help drivers cover the high cost of purchasing an EV. He emphasizes that Uber will not keep any of the money for itself.
Uber estimates that a driver who works 40 hours per week could earn £4,500 ($5,800) over three years to apply to the price of an EV. Khosrowshahi says drivers who use the program are not obligated to use the EV they buy only for Uber trips. Unused funds earmarked for a driver who quits will be spent on other “green” initiatives.
Uber is unveiling the program as it prepares to appeal a court ruling that its drivers should be entitled to such benefits as overtime and paid vacations. Uber has contended that its drivers are independent workers.
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