Uber and Chinese electric vehicle (EV) maker BYD have announced a multi-year strategic partnership to add up to 100,000 new BYD EVs to Uber’s global fleet. The deal is a clear shot across the bow of Elon Musk’s Tesla.
The partnership will initially focus on Europe and Latin America, with plans to expand to the Middle East, Canada, Australia, and New Zealand. Uber and BYD aim to provide drivers with competitive pricing and financing options for BYD cars on the Uber platform.
Beyond vehicle supply, the companies will collaborate on developing future BYD autonomous driving vehicles for the Uber platform. This partnership marks one of the largest agreements BYD has reached in the shared transportation sector.
BYD’s rapid growth in the EV market contrasts sharply with Tesla’s recent challenges. Car rental giant Hertz, for example, has significantly reduced its Tesla fleet due to high repair costs and reliability concerns.
Uber boasts the world’s largest network of on-demand EVs, while BYD is the global leader in EV production. Together, they aim to reduce the total cost of EV ownership for Uber drivers and accelerate the adoption of electric vehicles globally.
This announcement comes on the heels of BYD’s October 2022 deal with German car rental group SIXT, which committed to purchasing 100,000 BYD EVs over several years. The Atto 3, an SUV available in Australia, is one of the BYD models already popular in the rental market.
Uber has yet to specify which BYD models will be included in the partnership. With dozens of models currently available in China, a wide range of options is possible.