Uber says it's partnering with China's BYD to bring on 100,000 EVs

By Steve Goldstein

Partnership with Chinese electric-vehicle maker does not include the United States

Uber Technologies said Wednesday it's looking to bring on 100,000 new electric vehicles made by China's BYD - though only outside the United States.

Uber said it will offer drivers "best-in-class" pricing and financing for BYD vehicles - first in Europe and Latin America, then the Middle East, Canada, Australia, and New Zealand.

"By working together, the companies aim to bring down the total cost of EV ownership for Uber drivers, accelerating the uptake of EVs on the Uber platform globally, and introducing millions of riders to greener rides," the companies said in a joint announcement.

Citing driver surveys, Uber said drivers are going electric five times faster than private-car owners, but said the price of EVs and availability of financing remain key barriers to switching. The companies' joint efforts may also include discounts on charging, vehicle maintenance or insurance, as well as financing and lease offers.

The companies also said they will collaborate on future BYD autonomous-capable vehicles to be deployed on the Uber platform.

The announcement comes as the U.S. and the European Union seek to restrict Chinese EVs from dominating the market by imposing tariffs. The U.S. tariff rate on China EVs is 100%, and the European Union said it would impose a tariff rate of 17.4% on cars from BYD.

Uber shares (UBER) rose 2% in premarket trade. The stock has gained just 2% this year, underperforming the 14% rise for the S&P 500 SPX.

BYD shares (HK:1211) listed in Hong Kong rose 1% ahead of the announcement and have gained 6% this year.

Warren Buffett's Berkshire Hathaway (BRK.B) has been a key investor in BYD, though lately has been selling shares.

Tesla (TSLA), a rival to BYD in China, saw its shares rise 1% in premarket trade.

-Steve Goldstein

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

07-31-24 0740ET

Copyright (c) 2024 Dow Jones & Company, Inc.