Ford and Uber Combine Forces to Boost Electric Vehicle Rideshares
Photo Source: Ford
On June 1st, 2023, Ford and Uber announced the launch of their groundbreaking Ford Drive program. Ford and Uber are expanding a pilot program that provides rideshare drivers a lease option on Ford’s Mustang Mach-E trims. The tests are currently being conducted in three American cities: San Francisco, San Diego, and Los Angeles. The option permits drivers to lease a Mustang Mach-E for between one- and four-month time periods, depending on the location. The vehicle is delivered to the driver within two weeks, and they use the Ford Drive app to manage payments and service. Service and maintenance of those vehicles are conducted through dealers as well.
Ford Drive is an initiative of Ford Next, a division within Ford that incubates and launches new businesses that align with Ford’s goals. By expanding the use of electric vehicles via the Ford Drive app, Ford enjoys increased brand recognition and sales, while Uber gains access to electric vehicles and financial flexibility. This partnership has the potential to inspire electric vehicle adoption, providing competitive advantages and creating opportunities within the rideshare industry.
The cooperative effort aligns with Uber’s $800 million commitment to helping drivers on its platform switch to zero-emissions vehicles in North America and Europe by 2030. As a matter of fact, Uber has already partnered with car rental companies like Hive and Hertz to provide affordable and flexible electric vehicle leases to its rideshare drivers. Still, the notable difference in this case is that it is the first time the company is collaborating directly with an automaker.
It is a Win-Win
With this pilot, Ford and Uber are effectively experimenting with the notion of cutting out the middleman. The fact that the pilot program is taking place in three California cities is fully intentional, as the state represents Uber’s largest market. It is also the only state to pass legislation stipulating that rideshare trips must be performed in zero-emissions vehicles by the 2030 model year.
Uber is making some headway in that vein, at least in California. For example, by the end of 2022, close to 10 percent of on-trip miles in California were completed in fully electric vehicles, according to Uber. In contrast, in Canada and the United States, that figure is approximately 4.1 percent, according to Uber’s sustainability report.
2022 Lease Program
While Ford Drive’s current program began vehicle deliveries in Los Angeles, the trial run in 2022 started in San Diego. Uber drivers ended up leasing over 150 Mach-Es, and today over 80 percent are rolling over into Ford Drive. Ford has not shared how many automobiles it will make available to Uber drivers as part of the extended pilot. However, Bill Knapp, who leads Ford Drive, explained the significance of such an endeavor: “We understand uptime and ease of use are critical to every rideshare driver. As more of them make the switch to electric vehicles, we’re building the Ford Drive program around their unique needs.”
Ford is investing more than $50 billion in electric vehicles through 2026. As part of its Ford+ plan, Ford is working to deliver a 600,000 electric vehicle production run rate globally by the end of 2023 and 2 million globally by the end of 2026. As a matter of fact, in May of 2023, Tesla and Ford announced that Ford electric vehicle drivers would be able to rely on Tesla’s Superchargers, which is a network of more than 12,000 chargers across Canada and the United States, doubling the number of fast-chargers available to Ford electric vehicle owners. The partnership will commence in 2024.
The 2023 Ford Mustang Mach-E is an exhilarating electric vehicle for consumers and, if you would like to see why this automobile has been so popular, please come visit NYE Ford. We have a dedicated sales team that will make sure your shopping experience is a rousing success. They will make your buying, leasing, or selling needs simple for any of our new vehicle inventory. We are proud to be your dealership home.