EVs are cheaper to run than diesels for high mileage Uber drivers

A new study by Transport & Environment (T&E) has shown that electric vehicles are cheaper to run for high-mileage, low-margin businesses like ride-hailing and taxis, in certain European cities.  

Medium-sized battery electric cars (EV) are on average 14% cheaper to run than equivalent diesels today, if slow charging overnight near home and/or fast charging at preferential rates are available. The savings can be higher (24%) in the case of Parisian drivers. In monetary terms, these savings amount to €3,000 every year. This is because of cheaper electricity, lower EV retail prices and higher purchase incentives in France.

T&E says the taxi and ride-hailing markets are best positioned to go fully electric first. The economics of EVs - more expensive to buy but a lot cheaper to run - match perfectly with high-mileage, low-margin businesses like ride-hailing and taxis. Uber-type drivers can do up to five times more kilometers than an average motorist.

Yoann Le Petit, new mobility expert with T&E, said: “This is a win-win-win situation for drivers, citizens and the planet. The sooner Uber and taxis go 100% electric, the sooner citizens will enjoy cleaner air and quieter neighbourhoods, the planet will have less climate-wrecking emissions and drivers will earn more money. If Uber wants to lead the change and be part of the solution for our cities, then the company should commit to 100% electric rides by 2025 in key European capitals.”

Charging is a key barrier for the uptake of EVs by professional drivers. Because slow charging is cheaper and publicly accessible but takes several hours, slow charging stations in residential areas where drivers live is key to significantly reducing operating costs. In parallel, dedicated fast chargers are needed for EV drivers to top up during the day, while having a break or waiting for customers.

T&E’s lifecycle CO2 emission calculator estimates that today EVs cut CO2 emissions by two-thirds on average across Europe compared to diesel cars. Because of Uber drivers’ high mileage, the climate benefits of replacing a combustion car with an EV in this sector are even greater.

Yoann Le Petit said: “In the fight against climate change and air pollution, city dwellers need to be able to commute less, cycle more and hop on the bus or metro more often. But to realise the goal of cleaner cities, authorities will also need to clean up the car fleet too. It makes perfect economic and climate sense to fully electrify high-mileage vehicles like Ubers and taxis. Cities have a crucial role in the ecological transition, providing the right incentives so drivers switch to EVs, and building up the charging network so they can operate easily.