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Uber pens deal with Arrival in move towards all-electric taxis

Uber to transition its 45,000 London-based drivers to electric vehicles by 2025

Arrival (NASDAQ:ARVL), the British electric vehicle manufacturer, recently listed on the New York Stock Exchange, has entered a partnership with Uber (NYSE:UBER) to develop electric taxis.

The deal will involve Uber drivers having an input into the design of the cars which are scheduled to move into production next year.

It is part of a wider plan by Uber to transition its 45,000 London-based drivers to electric vehicles by 2025, while the remainder of UK drivers will do the same by 2030.

When Arrival floated in the New York Stock Exchange in March it committed to developing a “small vehicle” in addition to its vans and buses.

Tom Elvidge, senior vice president of Arrival Mobility UK said: “We know that electrifying ride-hailing vehicles will have an outsized impact on cities, and we are keen to support drivers as they manage this transition.”

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“Arrival Car will be centered around drivers’ needs to create a vehicle that is affordable, durable and desirable.”

Uber’s regional general ganager for Northern and Eastern Europe, Jamie Heywood, said: “As our cities open up we have an opportunity to make sure that urban transport is cleaner than ever before. 

“Uber is committed to helping every driver in London upgrade to an EV by 2025, and thanks to our Clean Air Plan more than £135m has been raised to support this ambition.”

“Our focus is now on encouraging drivers to use this money to help them upgrade to an electric vehicle, and our partnership with Arrival will help us achieve this goal.”

It is the latest in a string of partnerships from Arrival. The company developed a bus along with FirstGroup which expected to begin operating early next year, as well as receiving an order for 10,000 vans from UPS.

The key selling-points behind the Arrival Car are the battery’s ability to last all day, as well as being no more expensive than a Toyota Prius.

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