Having faced one of the worst trading years on record, along with legal challenges in courts across the world, the last year has been a tumultuous journey for ride-hailing app Uber. But, as is typical for Uber, they haven’t let this hold them back and are already moving onto their next big bold idea. This time, they have partnered with UK start-up, Arrival, to help get prepared for a world without petrol or diesel vehicles. Together will collaborate on a range of all-electric vehicles, purpose-built for the ride-hailing app.
Who are Arrival?
Arrival Limited, based out of Banbury, Oxfordshire, was founded by an ex-Russian government minister, Denis Sverdlov. Using profits from the sale of Russian phone-maker Yota in 2012, Arrival hopes to be the world leader in all-electric vehicles purpose-built for passenger transport and light freight. Four concept designs have been revealed, including a bus, large and small model vans, as well as a car. Arrival state that they are the only all-electric vehicles that will be able to match the retail price of typical petrol and diesel cars.
Although they haven’t actually started manufacturing vehicles yet, when stocks for Arrival Limited went public earlier this year, they made Sverdlov an instant billionaire. Unusually for most start-ups, Sverdlov has managed to retain a majority stake of 76% of the company, which is now valued at around $11 billion. Not bad considering they haven’t made a sale yet!
Arrival has already partnered with Royal Mail and UPS to design and manufacture electric delivery vehicles. Both firms hope that they can utilise Arrival’s expertise to get their huge fleets ready for the impending rules changes regarding fossil-fuel-powered vehicles. Uber are the latest goods/passenger transport firm that has taken notice.
The Uber-Arrival Collaboration
Uber has stated that they hope to achieve zero car emissions within London by 2025. Under their Clean Air Plan for London, they have already raised over £130 million to help get their legions of drivers into electric vehicles. Considering the cost is one of the main hurdles for drivers, this financial support is a good first step. But now, Uber is stepping up their plans.
Announced this week, Arrival and Uber are now partnering to produce an all-electric vehicle purpose-built for the ride-hailing industry. The key aim of the project is to create an affordable vehicle, designed from the ground up with drivers and passengers in mind. To aid the design process, Uber drivers have been invited to consult on the process to ensure that it meets their requirements.
Technology is the main driver of both companies’ business models, which is no doubt one of the key motivators behind the collaboration. Arrival’s defining feature is the fact that they can produce and design all elements of the manufacturing process. Everything from individual components through to the machines needed to produce the vehicles is produced in-house. This means Uber have an unprecedented opportunity to build a vehicle with their technology at the forefront of all design choices.
Uber’s Regional General Manager, Jamie Heywood, commenting on the collaboration said:
“As our cities open up we have an opportunity to make sure that urban transport is cleaner than ever before. Uber is committed to helping every driver in London upgrade to an EV by 2025, and thanks to our Clean Air Plan more than £135m has been raised to support this ambition. Our focus is now on encouraging drivers to use this money to help them upgrade to an electric vehicle, and our partnership with Arrival will help us achieve this goal.”
Senior Vice President of Arrival Mobility UK echoed this sentiment, stating:
“We are confident that electrifying ride-hailing vehicles will have an outsized impact on cities, and we are keen to support drivers as they manage this transition. Arrival Car will be designed around drivers’ needs to create a vehicle that is affordable, durable and desirable. We have a great partnership with UPS to create a best-in-class electric delivery vehicle, and we hope to replicate that success with Uber as we develop the best possible product for ride-hailing that elevates the experience of the passenger and improves drivers’ health, safety and finances.”