Transitioning Transportation in Europe through Ride-Hailing and Decarbonization
In a recent study commissioned by Uber, the BloombergNEF report has outlined four key challenges and potential solutions for the mobility ecosystem, with a particular focus on increasing the supply of affordable electric vehicles (BEVs) in ride-hailing.
One of the main challenges identified is the need to increase the supply of affordable BEVs. This is crucial as road transport accounts for about 18% of global CO2 emissions, and nearly 10% of ride-hailing distances are driven using BEVs, compared to about 2% in the general population. Uber drivers are shifting to zero-emission vehicles five times faster than the general population, indicating the speed at which ride-hailing is electrifying.
To address this challenge, the report recommends accelerating public charging deployment, making public overnight charging more available and affordable, and bundling charging demand to reduce cost. Prioritizing incentives for high-mileage BEV drivers and tying taxes and incentives to BEV performance are also suggested as solutions. Furthermore, the report stimulates the supply of used BEVs to help lower the cost of ownership.
Another challenge highlighted in the report is the cost of charging BEVs. To lower this cost, the report suggests policy makers and Original Equipment Manufacturers (OEMs) must adhere to decarbonization commitments, and drivers must be informed about the benefits of the current BEV supply. Additionally, the report recommends factoring BEV incentives into urban planning and highlighting the advantages of restricted (or priced) vehicle access zones that prioritize BEVs.
The four OEMs that should play a special role in promoting the supply of cheap BEVs, according to the BloombergNEF report, are Volkswagen, Hyundai, Renault, and Tesla. The solutions outlined in the report could benefit the entire mobility ecosystem, not just ride-hailing.
The fast pace of electrification in ride-hailing must be further accelerated to keep pace with the targets implied in the Paris Agreement. The report concludes that the solutions it presents could help achieve this goal, benefiting not only the environment but also the financial health of ride-hailing companies and drivers.
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