Uber’s EV Segment Growing, Rideshares Taking More Charging Resources

According to Bloomberg, the number of monthly EV drivers on Uber surged to approximately 182,000 last quarter, marking a 10-fold increase over the past three years. With the lower total cost of ownership (TCO) for EVs—thanks to reduced fuel and maintenance costs—electric vehicles are becoming more attractive, particularly for high-mileage applications like ride-hailing services. This shift is poised to further drive the adoption of EVs in rideshare operations, benefiting multiple stakeholders in the EV ecosystem.

In August, EV expert Loren McDonald wrote an article about the significant impact rideshare drivers are having on EVgo’s fast charging network, with 25% of its U.S. fast charging session throughput now coming from rideshare drivers. In many urban areas, this figure can reach upwards of 50% of session throughput, underscoring the growing reliance on electric vehicles in the rideshare industry.

For charge point operators (CPOs), this surge is a positive development, as utilization rates are now averaging over 20% across the U.S., with some urban locations surpassing 50% utilization. These numbers represent a drastic improvement compared to just 1-2 years ago, when such high usage was unheard of. Utilization data from Stable Auto reveals that DCFCs, once deemed poor investments due to low utilization, are now becoming profitable across many US states.

This increase in demand has positioned EVgo to potentially reach profitability by 2025, a milestone that McDonald believes is largely driven by the growth in rideshare driver sessions.

EVgo recently secured a conditional commitment for a loan guarantee of up to $1.05 billion in debt financing from the U.S. Department of Energy (DOE) Loan Programs Office (LPO), intended to support EVgo’s efforts to accelerate the expansion of its fast charging network.

Until recently, McDonald was CEO of EVAdoption, which was acquired by Paren. Now, McDonald is Chief Evangelist at Paren. EVinfo.net asked McDonald for further insight into how rideshare growth is impacting EV charging. McDonald said:

“Rideshare growth is great for helping to turn the DC fast charging business from a crappy one, into an actual profitable business and industry. And these super busy stations, help make up for the low-utilization sites that are needed to give drivers confidence they can go on road trips in rural areas. But the downside is that at urban locations, it means non-rideshare drivers may now see queues when they need to charge to get to their next destination. It doesn’t appear to be a significant problem today, but roll forward a year from now when there are many more EV drivers on the road – especially in high-EV adopting markets.”

McDonald offered solutions, including suggesting that rideshare companies do their own investments in EV charging.

“There are many potential solutions: More charging stations, dedicated charging stations for rideshare drivers, more stations near airports and heavy rideshare pickup/drop-off areas, rideshare hours and pricing (the San Francisco Electrify America indoor 20-stall station, for example, sees a lot of rideshare drivers after midnight). I’m very happy for the various charging networks/CPOs that are now seeing huge growth in charging sessions and revenue from rideshare drivers (which benefits everyone) — but I also believe that Uber, Lyft, et al are going to have to step up to the plate pretty soon, and invest in charging infrastructure for their drivers that use charging stations to help fuel their “personal businesses,” continued McDonald.

Uber Green Gives Riders EV-only Choice as Part of GO-GET Zero

Uber users now have the option to request electric-only vehicles through the Uber Green feature in the app. This option allows riders to specifically choose EVs instead of gas-powered vehicles, though they may experience slightly longer wait times for these rides.

Initially, this all-electric option will be available in several major U.S. cities, including New York City, Los Angeles, and Las Vegas. Internationally, the feature will also roll out in France and cities across Australia, such as Sydney and Melbourne, expanding the availability of sustainable transportation options for Uber customers.

“After launching Uber Green with hybrids and EVs around the world, we now have enough EV drivers on our platform to make it an EV-only option in 40+ cities globally,” said Uber CEO Dara Khosrowshahi, per FOX Business. “Riders will be able to choose an EV for about the same price as UberX.”

Uber plans to introduce an AI assistant to its app early next year, which will help users with questions related to purchasing electric vehicles. The chatbot will provide detailed information on topics such as EV range and charging options, making it easier for potential EV buyers to navigate their decision-making process. This new feature will enhance the app’s functionality, offering riders and drivers valuable insights into the EV landscape while promoting the shift toward sustainable transportation.

“Going electric is a big decision, and drivers have lots of questions. That’s why we’re announcing an AI assistant in the driver app — powered by OpenAI’s GPT-4o — to help drivers get answers to every EV question under the sun,” noted Khosrowshahi.

As part of its expanded green initiative, Uber is launching “premium EV pop-ups” in select cities, including Los Angeles, Miami, Dallas, and London. These pop-ups offer riders a unique chance to experience luxury electric vehicles like the Rivian R1 and Lotus Eletre.

Uber Eats is launching the Green Packaging Marketplace with the goal of making high-quality, sustainable packaging more accessible to restaurants worldwide. The marketplace is designed to simplify the process of purchasing eco-friendly packaging, ensuring that Uber Eats partners can easily switch to greener alternatives.

Uber has committed to going all-electric by 2040 as part of its effort to reduce emissions. To support this transition, the company has allocated $800 million to help its drivers switch to electric vehicles. This includes offering discounts on purchased or leased EVs through partnerships with select automakers, making it easier for drivers to adopt cleaner transportation.