Summary
- Arrival and Uber to produce electric taxis by 2023.
- The design of the car would be unveiled by the end of 2021 itself.
- The startup aims to build an affordable and purpose-built car for Uber drivers.
UK-based electric van and bus manufacturer Arrival said that it will develop an electric car for Uber Technologies Inc, which is expected to go into production in the last quarter of 2023. The car would be designed for exclusive usage by the Uber drivers. The agreement between the two firms is not exclusive as of now and does not involve any monetary deal so far. Even though nothing has been finalised about the car’s manufacturing unit, Tom Elvidge, Senior Vice President for Mobility, Arrival, said that the company may decide to keep the production base in the UK.
The two firms would also be exploring strategic relationship across the key markets in the US, EU, and the UK. The demand for electric vehicles is likely to shoot up in the coming years as the UK would be banning the sale of conventional petrol and diesel cars from 2030.
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Design of the car
The new car’s design is expected to be made comfortable for Uber drivers with features like easy to clean, among others. The purpose-built car for the Uber drivers would be made with inputs from the users. The vehicle is also likely to have a foldable front passenger seat so that more luggage can be adjusted. It is also likely to have a panoramic glass roof. The new car’s final design is likely to be completed by the end of 2021.
Arrival’s entry into the electric car segment
With this move, the auto startup Arrival would be formally entering the electric cars segment and competing with the biggies of the segment, such as Toyota, Tesla and Volkswagen, apart from other EV companies.
Without revealing the price of the new electric car, the company said that it would be affordable. The new car would be made using similar principles of the company’s existing electric vans and buses. The auto maker would use internal combustion engines while producing the car, said Elvidge. It will have roughly the same upfront cost as its equivalents, he explained.
Uber’s plans
Uber plans to become a completely electric mobility platform in London by 2025. Jamie Heywood, regional manager for northern and eastern Europe, Uber, said that the company had raised money to the tune of £135 million to help its London drivers to upgrade their fleet by 2025. Its tie-up with Arrival will speed up this process, he added.
The Uber Green app was recently launched in London, which gives the passengers an option to choose a green car or an electric vehicle without any additional cost.
With higher demand for the taxi service in Britain as the coronavirus restrictions are getting lifted, the taxi company is hiring 20,000 more drivers across the nation.
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