Uber and Chinese automaker BYD announced a multi-year partnership aimed at bringing 100,000 new electric vehicles (EVs) to the ride-hailing platform globally. The partnership, which will initially launch in Europe and Latin America, seeks to offer drivers accessible pricing and financing options for BYD's EVs on the Uber platform. The companies plan to expand this initiative to additional markets, including the Middle East, Canada, Australia, and New Zealand. Following the announcement, Uber's shares rose by approximately 2.5% in premarket trading.

The high cost of electric vehicles and increased borrowing costs have been significant barriers to widespread EV adoption over the past two years, leading to slower-than-expected growth in demand. However, growing concerns about climate change and the need to reduce greenhouse gas emissions have accelerated the global push towards electrification in the transportation sector. To support the transition to EVs, Uber and BYD will offer drivers discounts on vehicle maintenance, charging, financing, and leasing, tailored to different markets.

Additionally, Uber and BYD plan to collaborate on integrating self-driving technologies with BYD's vehicles on the ride-hailing platform. This move aligns with Uber's broader efforts to promote the use of EVs, as the company aims to become emission-free in U.S. and Canadian cities by 2030. The partnership comes as BYD continues to compete with its U.S. rival, Tesla, which plans to unveil its robotaxi product in October, following a dip in its EV sales in the first two quarters of the year. Despite BYD surpassing Tesla as the world's largest EV maker last year, Tesla has since regained the top spot.