Uber has abandoned its promise to operate an all-electric fleet in major cities in the UK, US and Europe by 2030 after its chief executive warned that drivers, consumers and governments were moving away from electric vehicles.
Uber CEO Dara Khosrowshahi said at the World Economic Forum in Switzerland that the company’s longstanding commitment to move to an all-electric fleet by the end of the decade “simply won’t happen.”
It is the first time Uber has publicly admitted it will miss the target set in 2020, which is closely linked to Labor’s wider ambitions to accelerate the transition away from petrol and diesel vehicles.
“Our goal of becoming fully electric by 2030 will simply not be achievable given the developments in society,” said Khosrowshahi. He added that while Uber will continue to increase the share of electric vehicles on its platform, external circumstances have made the original promise unrealistic.
Uber previously announced that London would be its first net-zero city by 2025. However, the latest figures show that the company is not even halfway to this goal, despite London being the most advanced market for electric vehicle adoption.
The company has repeatedly warned that the transition would stall without greater support from policymakers. Last year, Uber said that “high upfront costs for electric vehicles, limited charging access and inconsistent political support” continued to slow driver adoption.
This pressure has increased as governments have scaled back subsidies and introduced new taxes on electric vehicles. In the UK, Chancellor Rachel Reeves announced a future per-mile car tax in her budget. The government’s financial regulator warned that this could significantly dampen demand for electric vehicles.
Rising electricity prices since the pandemic have further eroded the cost advantage of electric cars, while incentives for drivers have declined. Uber itself has cut bonuses for drivers who use electric vehicles, weakening the financial motivation to switch.
In London, the introduction of congestion charging for electric vehicles under Mayor Sadiq Khan has dealt another blow to Uber’s electrification plans in the capital.
Late last year, Uber said 40 percent of rides in London were electric, compared to 15 percent across Europe and just 9 percent in the United States. In America, cuts to electric vehicle subsidies under President Donald Trump have further slowed adoption.
Despite the change in tone, Uber’s website continues to state that 100 percent of rides in Canada, Europe and the U.S. will be emission-free, although no revised deadline has been set.
Khosrowshahi tried to take a more optimistic stance on longer-term technology, suggesting that autonomous vehicles could ultimately revive Uber’s green ambitions. He said robot taxis, which normally run on electricity, could start operating in London as early as this year.
“One of the advantages of autonomous vehicles is that they are all electric,” he said. “So the autonomous revolution will also be an electric revolution.”
He added that discussions with UK regulators were progressing, describing London as moving towards both artificial intelligence and autonomous transport and the tech talent base in the UK being “excellent”.
For now, though, Uber’s retreat from its 2030 target underscores the growing gap between policy ambitions and the realities facing businesses and consumers as the shift to electric vehicles loses momentum.
