Uber Plans to Reach 2040 Zero-Emission Goal
The continued growth of the food delivery services market shows consumers are willing to pay more for the convenience of having food from restaurants delivered to their door. By the end of 2020, growth of food delivery spending more than doubled compared to 2019 and the industry is projected to be valued between $200 and $285 billion by 2025. At the same time, it is projected that by 2023 one quarter of smartphone users (14 million Americans) will use food delivery apps.
Due to rapid growth and consumer interest in carbon neutrality, Uber has announced its global commitment to become a zero-emission platform by 2040 with 100 percent of rides taking place in zero-emission vehicles, on public transit or with micro-mobility. Uber is also setting earlier goals to have thousands of drivers transition to electric vehicles (EVs) by 2025 through its Green Future program and have 100 percent of rides take place in EVs in U.S., Canadian and European cities by 2030. Uber plans to work with local stakeholders in major cities to implement policies that ensure a fair transition to EVs for drivers. Its corporate operations are committed to reaching net-zero emissions by 2030, putting it ahead of Paris Climate Agreement targets.
Uber plans to achieve these goals through four key actions:
1.) Expanding Uber Green to make it easier for riders to choose to travel in hybrids or EVs. For a $1 fee, riders can tap a button to request a ride in an EV or hybrid vehicle and receive 3x rewards points. Currently available in 15 cities, by the end of 2021 Uber Green will be available in more than 65 cities globally.
2.) Committing $800 million in resources to help thousands of drivers transition to EVs by 2025. Drivers who choose to drive in EVs or hybrids will earn extra money with each trip. Uber is working with leading electric carmakers to extend attractive offers on EVs to drivers and investing in its multimodal network to promote sustainable alternatives to personal cars. It will also be releasing its first-ever Climate Assessment and Performance Report from 4 billion rides, making Uber the only rideshare company and one of the first companies more broadly to measure and report on emissions from customers’ real-world use of its products.
Why It Matters:
As companies continue to make sustainability commitments aiming to market carbon conscious products and services to consumers across their entire supply chains, we can expect to see the push for EV delivery drivers and eco-friendly incentives to consumers for supporting them through their purchases. Driven by heightened awareness of their carbon footprint, consumers could favor EVs through incentives from ride share platforms or e-commerce companies, driving up this demand.
Posted: 7/29/21