Uber South Africa is paving the way to execute its electric vehicle (EV) strategy for its delivery and e-hailing business.
The world’s largest e-hailing company says it is working to deploy EVs in SA in 2025, and has been engaging potential ecosystem partners, including charging infrastructure companies, which will support its transition to a green economy.
This, after the company in July announced a partnership with EV manufacturer BYD, noting it would roll out 100 000 new EVs in key markets across the world.
The partnership, which started in Europe and Latin America, is expected to offer drivers lower pricing and financing for BYD vehicles on the Uber platform.
During an interview with ITWeb, Nakampe Molewa, GM for Sub-Saharan Africa at Uber Eats, said Uber is preparing to use EVs locally next year.
The e-hailing company has committed to becoming a zero-emission platform in the US and Canada, as well as major cities across the globe – where it can ensure a fair transition for drivers – by 2030.
Molewa explains: “The future is e-mobility, and as Uber we are absolutely certain about that. If you look at Uber globally, we have a metric – we are looking at having 10% to 15% of our modalities globally be electric by 2027. In South Africa, EVs are a very nascent technology at the moment, but there are a few interesting plans happening.
“Uber’s partnership with BYD will also be for South Africa – focusing on the rides business. For the delivery business and the package business, we are in talks with a couple of partners to start operating with them next year. We are not only focusing on e-mobility, but also have huge infrastructure plans, where we are looking at a strategy around charging stations. We are looking at the role we can play in order to implement our e-mobility vision.”
Uber is available in over 60 cities in Sub-Saharan Africa and across all nine provinces in SA.
While the company has already rolled out EVs for the e-hailing business in other parts of the globe, in SA, the pilot phase is expected to be introduced next year, Molewa adds.
Uber Eats has a partnership with e-mobility start-up Valternative Energy, to provide emission-free, on-demand delivery services across SA.
Uber’s e-mobility strategy, according to Molewa, is premised on several pillars: supporting drivers in their transition to EVs to reduce carbon footprint; expanding green ride options for riders to promote sustainable transportation choices; and collaborating with NGOs, government and the private sector for a fair energy transition.
“In Cape Town, we have partnered with Valternative Energy, which is supplying us with electric scooters and helping us with emission-free package delivery services.
“If you go to African markets like Kenya, they are far ahead of South Africa in e-mobility. They are rolling out enormous battery-charging infrastructure all over Nairobi and there is a lot to learn from our African counterparts.”
Last week, Uber and China's WeRide announced the Middle East's first commercial driverless mobility service in Abu Dhabi. The service will be available to Uber riders requesting UberX or Uber Comfort.
Over the last few years, Uber has been engaging governments across Africa, urging the creation of a favourable regulatory environment to help accelerate the use of EVs on the continent.
This, as global countries race to establish zero-emission vehicle policies and incentives to increase rollout, generate interest and make EVs more affordable for the general public.
In SA, the company has been at loggerheads with its drivers and operators, who have been working to draw government’s attention to the importance of establishing a policy framework that will help alleviate the challenges faced by the local e-hailing sector.
The past few years have seen nationwide protests, urging government to speed up the process of regulating the e-hailing industry, to minimise what they call “atrocious working conditions” and “unfair wages”.
Other concerns included safety and security issues, and the high commissions deducted by e-hailing services from drivers’ wages.
According to Molewa, SA’s signing into law of the amended National Land Transport Act 5 of 2009, in June, will finally pave the way for the regulation of e-hailing services, and help promote safety and security in the industry.
It will also highlight the importance of preparing for the electrification of transport.
“What we’ve seen from the South African context, especially in Gauteng, is that policymakers have been willing participants in seeking resolutions. We've been finding they are quite willing to listen and connect us to other key stakeholders within the ecosystem, which is key to creating an ecosystem for a smart city and will allow us to start planning around e-mobility,” Molewa comments.
The Department of Trade, Industry and Competition, together with National Treasury and the Department of Mineral and Petroleum Resources, is in conversation about the implementation of the imminent Electric Vehicle White Paper.
Addressing delegates at South African Auto Week in October, president Cyril Ramaphosa noted government is working to finalise the comprehensive policy guidelines to ensure they do not exclude alternative technologies, such as hybrids and plug-in hybrids.
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