Uber punts hybrid cars from “green vehicle” scheme, to focus on battery electrics

Hybrid cars will no longer qualify as “green” vehicles on Uber’s rideshare service in Australia after the tech giant announced changes to prioritise electric cars on its platform.

Uber executives announced the changes at a London event on Wednesday, also revealing extended partnerships with two electric car firms in Australia to offer more models to local drivers.

The changes come three years after the company announced plans to eliminate emissions from its platform by 2040, but also as electric vehicle sales stall in Australia and hybrid cars surge in popularity.

Announced at the company’s second annual Go Get Zero event, the changes will mean Australia’s Uber Green service will no longer host hybrid vehicles from April 2025, but will offer access to electric cars exclusively.

The company had long wanted to offer a low-priced electric-only service, Uber Australia and New Zealand managing director Emma Foley said, but needed time for drivers to adopt enough low-emission vehicles to make it work.

“We’re seeing real demand from riders across Australia to have a fully electric option, so we have been waiting for the right time to make that transition,” she told AAP.

“Hybrid vehicles are still really popular with drivers and they will continue to be an option that’s available across other products.”

More than 5400 Australian Uber drivers currently use electric cars, representing five per cent of kilometres travelled on the platform.

Ms Foley said more drivers wanted to buy the battery-powered vehicles, but were being deterred by the high initial cost.

“We know if we let it all happen by itself, it will be a big uphill journey to (net zero in) 2040,” she said.

“In the wider market, we have seen EV demand slow a little in recent months.”

To encourage drivers to buy electric vehicles, Uber will extend its partnerships with Car Empire to offer access to another 20 new and second-hand models, and with Splend to offer second-hand EVs to drivers in most states.

Splend chief executive Chris King said the Sydney car finance company expected to sell at least 2000 electric vehicles by the end of 2024, with demand growing among professional drivers.

“We’re seeing two thirds to three quarters of demand being for EVs, with the remainder being hybrid,” he said.

“A year ago, it was probably flipped around and a quarter of the demand was for EVs.”

Prices for electric vehicles had also started to “normalise” due to better supply and greater competition in the market, Mr King said, which would help to build momentum in the Australian automotive market.

Electric car sales have slowed in Australia during 2024, with figures from the Federal Chamber of Automotive Industries and the Electric Vehicle Council showing EVs made up 6.4 per cent of all new car sales in September, down from eight per cent in 2023.