Uber Electrifying Its Ride Network With Up To 50,000 Of Hertz’s New Teslas

Uber is launching a new program to allow its drivers to work with Tesla’s leased from Hertz.

Uber is a company that would like to increase the number of drivers to use zero-emission vehicles. Has partnered with Hertz to put 50% from the 100,000 Teslas the rental car rental company is purchasing via Elon Musk’s electric automaker to use its network. The first vehicles are launching this week.

The rideshare firm based in San Francisco expects to have drivers who use up to 55,000 Teslas on the U.S. system, thanks to the preferred weekly lease program partnered with Hertz and additional incentives to encourage the use of automobiles. It will be the most significant EV initiative to launch any rideshare company across the U.S., kicking off in November. 1. in major cities such as San Francisco, Los Angeles, San Diego, and Washington D.C., Uber says. The program will be spread to other cities over the next few weeks.

“This new program with Hertz aims to create positive environmental benefits by reaching rental drivers, who are often looking to offer rides for more hours and more miles than the average driver,” Andrew Macdonald, Uber’s senior vice president of transportation and operations, stated in a blog entry today. “Research shows that when rideshare drivers go electric, they realize three- to four-times greater emissions savings than average car owners.”

Uber’s partnership with Hertz follows the rental company’s reckless plans to buy four billion dollars worth of Teslas largest fleet purchase of its cars in its history. The announcement of Hertz’s plans led to Tesla shares up to record heights and lifted its market capitalization to the $1 trillion mark. According to Forbes estimates, it also dramatically increased Tesla CEO Musk’s wealth to more than $253.8 billion, which makes him the wealthiest person in the world.

In 2020, Uber announced that it will invest $800 million over five years to encourage drivers to change to electric vehicles with a goal of all trips on the platform being emission-free in 2040. Hertz has been offering a vehicle rental service for Uber drivers since 2016, and the Tesla initiative is based on this.

The following week Uber drivers will be able to lease Teslas at Hertz for $334 per week. This will decrease to $299 a week as the program grows. The price includes insurance as well as vehicle maintenance expenses. Drivers can also earn incentives from Uber’s Green Future Program, which provides one cent more per journey in electric car rides (up to $4,000 annually). Tesla’s Superchargers as well as reduced charging rates at EVgo stations, according to Macdonald.

“While this partnership is a forward step to advance electrification on the Uber platform, it’s prominent to point that owning an electric vehicle is still too often more expensive than a traditional gas-powered vehicle,” he added. “This is a critical challenge that we all must continue tackling together with government leaders through smart policy to bring the cost of EV ownership in line with or below gas-powered cars.”

Uber shares dropped 2.8 percent in the final hour to $44.73 on New York Stock Exchange trading on Wednesday.

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Adam Collins
Adam writes about technology, business and economics. With master's degree in Economics, he's presented six papers in international conferences. As a solivagant in the constant state of fernweh, curiosity is the main weapon in his arsenal.

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