Why your next Uber will be electric: NSW Government incentives and huge ride-share push combine to create perfect EV storm

June 20, 2021June 20, 2021 Andrew Chesterton 2632 Views

It has been a long – long – time coming, but it seems the dam walls have finally broken for EV incentives in Australia, even if our coal-carrying PM still has his head so deep in the sand he merely need whisper when chatting to Xi Jinping.

Leading the charge, so to speak, will be the ride-share industry, which is poised to undergo an electric revolution, with a combination of NSW State Government incentives and Uber’s own commission policies combining to ensure the next car you hail will likely be powered by batteries.

To be honest, the timing couldn’t be better for the State Government. See, from July 1, Uber is halving its commission for drivers who use a zero-emissions vehicle.

And we’re talking big savings. Remember, commission is the single biggest expense an Uber driver faces, and so the ride-sharing giant’s decision to halve it from around 25 percent to 12.5 percent for EV drivers means real savings. Add to that the lower running costs, repair costs, and the rapidly falling price of electric vehicles in this country, and you’re left with some serious incentives to go EV.

But in what would be a massive embarrassment for our elected officials, we were soon to be in a position where an American company not exactly famed for its philanthropy would be doing more to aid EV take-up in Australia than any of our governments at a state of federal level, except for maybe the ACT.

“We believe in doing this we can encourage more Australians with electric vehicles to share sustainable rides with Uber,” the company says.

“We want to see more drivers of electric vehicles join the platform, we want to do what we can to make it more economical for existing electric vehicle drivers to stay on the platform, and we want to be able to match the commitments we’ve made overseas right here at home.”

Not to be outdone, though, the NSW State Government has swooped in – and just in the nick of time – with its own incentives and EV sweeteners.

The first is the decision to allow EV drivers to use T2 and T3 transit lanes, meaning drivers can get to their next fare faster. But the big money comes in the form of a $3k electric vehicle subsidy (vehicles up to $68,760), and stamp duty exemption (up to $78,000).

We’ve run some simple numbers here, and based on a Tesla Model 3 Standard Range Plus (usually around $68,750), the incentives would mean savings of around $5325. If your tastes run more to the MG ZS EV, our calculations tally a saving of around $4300 – or approximately 10 per cent of the vehicle price.

Drivers already tell us that the firms who rent cars for Uber operators are investigating adding plenty of EVs to the mix, and others who already drive electric vehicles tell us they’re counting down the days until the savings kick in.

How long they’ll last is anyone’s guess, with Uber so far only promising 12 months. But it seems the dawn of the EV Uber is upon us. And to be honest, we couldn’t be happier about it.

Now if only they’d bring back the mints and bottled water…

Andrew Chesterton

Andrew began his career as a journalist at Sydney’s The Daily Telegraph and The Sunday Telegraph, before he was lured into the fast-paced world of supercars at TopGear Australia. He has also held senior roles at The Daily Mail, which involved spending time at HQ in London, and on the other side of the automotive divide with FCA Australia. As one of Australia's best-read freelance writers, Andrew now contributes to Robb Report, Wish in The Australian, Domain in The Australian Financial Review, CarsGuide, Wheels, The West Australian, GQ, Men's Health and more. His love for writing has carried him around the world and back again, writing for clients in Asia, Australia, New Zealand, Europe and the USA. He secretly enjoys it so much he’d probably do it for free, but he hopes his editors never find out that bit...