Uber Technologies will team up with BYD Co to put 100 000 electric vehicles onto the ride-hailing companys platform, in a major deal between American and Chinese businesses that notably excludes the US.
Under the multiyear partnership, the two companies will offer drivers lower vehicle pricing and financing. The tie-up would start in Europe and Latin America, then expand to the Middle East, Canada, Australia and New Zealand, Uber and BYD said on Wednesday in a statement.
The alliance bolsters Ubers efforts to transition the fleet of vehicles on its ride service to EVs an initiative that chief executive Dara Khosrowshahi warned early this year was running off track. Its also a boon to BYD, which has been one of the worlds fastest-growing automakers the past few years. That expansion has largely been driven by climbing the sales ranks within Chinas massive car market, and the company is now embarking on an expansion into countries where its brand is less established.
We look forward to seeing our cutting-edge EVs become a common sight on the streets of cities worldwide, said Stella Li, the executive vice president of BYD and chief executive of BYD America.
Uber shares jumped as much as 2.6% in premarket trading Wednesday in New York. BYD shares have risen more than 6% this year in Hong Kong, boosting the companys market capitalisation to HK$734.6 billion (R1.7 trillion).
