National Electric Vehicle Strategy: consultation paper

Submission to the National Electric
Vehicle Strategy Consultation paper

October 2022
Introduction

Uber welcomes the opportunity to provide a submission to the Australian Government’s consultation paper on a National Electric Vehicle Strategy.

At Uber, we believe the future of transport is shared, multi-modal and electric.

Uber has committed to become a fully zero-emission platform by 2040, with 100% of rides taking place in zero-emission vehicles, on public transit, or with micromobility (transportation using lightweight vehicles such as bicycles or scooters, especially electric ones). In Australia, we’ve shown our commitment to that future by introducing shared rides options like Uber Pool, integrating micromobility and public transport into the platform, and investing heavily in electric vehicle uptake.

Electrifying the platform

In June 2022 we announced a $26 million investment into Australia’s electric vehicle market. As part of this initiative, we have cut service fees by 50% for driver-partners using battery electric vehicles (BEVs) on the platform until mid-2025 (for the first 2,500 drivers, up to a value of AUD
$3,500 per year). This announcement followed the success of a 12 month trial to reduce service fees for BEV drivers across the platform which drove huge increases in zero emissions trips taken on our platform, and it supports commitments by governments across the country to accelerate electric vehicle adoption.

In October 2022 we announced that, in partnership with our car rental partner Splend, we’re bringing 500 premium EVs to Australia and making them available for driver partners in NSW to own, with the majority delivered before year end and the remainder arriving in early 2023. At a time when EVs are in short supply in Australia, this deal will make it easier than ever for rideshare drivers to make the switch to EVs.

The arrival of these 500 EVs onto NSW roads will serve as the catalyst to launch Uber’s much-anticipated Comfort Electric product in Sydney early next year. Comfort Electric will enable
Aussies to get around town in style while being a part of the climate solution – with all rides taking place in 100% zero-emissions EVs.

The National Electric Vehicle Strategy Consultation paper

Enclosed for the Government’s consideration is Uber Australia’s report titled Electrifying
Rideshare: Increasing E-Shared trips in Australia. The key recommendations and policy options in Uber’s Electrifying Rideshare report are:
● Recommendation 1: Close the interim cost gap between Internal Combustion Engine
vehicles and EVs, especially among high km drivers. Policy options include:
○ Provide upfront point of sale incentives for EV purchases, including second-hand
vehicles
○ Waive or reduce other fees and taxes such as stamp duty and registration
○ Give EVs urban access advantages such as access to high occupancy lanes

● Recommendation 2: Ensure all high-km drivers can reliably access overnight charging at
or near their home, where they would normally park. Policy options include:
○ Support the rollout of at home charging infrastructure as well as suburban ‘near
home’ public charging with kerbside ‘right to charge’ policies
○ Introduce EV-ready building codes and laws to make it easier for renters and
people in multi-unit dwellings to install at home chargers
○ Continue to support the roll out of rapid, affordable public charging networks in
metropolitan areas, ensuring equitable distribution across cities

● Recommendation 3: Delay EV-only road user charges and policies which widen the
interim cost gap, particularly for high km drivers. Policy options include:
○ Delay EV-only road user charges while uptake is in its infancy
○ Cap or exempt commercial EV drivers, either in perpetuity or for ~5-10 years
○ Move away from fuel tax and toward a road user charging scheme for all cars

● Recommendation 4: Stimulate the market through standards and targets to ensure
drivers can access long range BEVs at a reasonable price as soon as possible. Policy
options include:
○ Introduce fuel efficiency standards comparable to other OECD countries, which
would also help lower the cost of fuel for all Australians
○ Introduce zero-emission vehicle sales targets and mandates on vehicle
manufacturers/distributors to increase supply
○ Stimulate demand through point of sale incentives and removal of taxes targeted
at affordable and second-hand models

Uber is committed to accelerating the adoption of electric vehicles in Australia and we want to work with governments, vehicle manufacturers and key stakeholders to accelerate the rate of EV adoption across Australia so that together we can create a more sustainable transport future. We appreciate the Government’s consideration of our report.

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Foreword
Dom Taylor
General Manager - Australia and New Zealand, Uber

We live in an extraordinary time. While Covid-19 may be our most
immediate challenge, extreme weather events - devastating
bushfires, scorching heat waves and no longer
once-in-a-generation hurricanes - remind us that climate change is
the biggest challenge we face this century.

What we can learn from the pandemic however, is how most
Australians react when a problem is well explained and understood.
When the public and private sectors come together with clear goals
and objectives, the community listens and responds.

The recent Intergovernmental Panel on Climate Change report
confirmed that we need to take action on global warming now.
Every country and business needs to reach net zero by 2050 to
limit the warming trend to 2 degrees celsius. To meet this challenge
we need to follow our global peers and act with urgency. The
electrification of transport is a critical part of achieving carbon
neutrality but unfortunately Australia lags the rest of the world on
electric vehicle uptake, making up only 1.57% of new vehicle sales
so far in 2021.

At Uber, we believe we can have an outsized impact in accelerating
the transition to zero emission transport by increasing the electric
kilometres driven on our mobility platform sooner rather than later.
That’s because when rideshare drivers switch to electric vehicles,
they realise three to four times greater emissions savings compared
to average car owners - because rideshare drivers use their
vehicles more frequently.

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We can also play a role in improving consumer awareness and understanding of electric vehicle technology to empower our customers to ‘go green’ in the future. One electric vehicle on the
Uber platform can help 100 riders a month on average get from A to B. Drivers with electric vehicles tell us that riders often ask them questions about vehicle performance and range anxiety, and at the end of those trips their passengers leave with a greater understanding of, and appreciation for, electric vehicle technology.

Uber has made global commitments to have 100% of rides in zero tailpipe emission vehicles, or through micromobility and public transport, by 2040. In Australia, from July 1 2021 to June 30 2022, all existing and new drivers of battery electric vehicles will pay half the service rate they otherwise would when driving on the platform.
This means Uber will lose money on every one of those trips - but we believe the benefits will be worth it.

We believe in doing this, we can encourage more Australians with electric vehicles to share sustainable rides with Uber, and more people who ride with Uber will discover and learn more about sustainable transport. We want to learn more about what we can do to drive uptake of electric vehicle uptake in Australia, and help close the interim cost gap for Uber driver-partners.

But we can’t go it alone. Reducing the transport sector’s emissions and tackling climate change will require an all-in effort across both the public and private sectors. We want to work with governments, vehicle manufacturers and infrastructure providers to increase the uptake of electric vehicle technology in Australia. Uber has a role to play in accelerating a green future and we are proud to play our part.

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‘As Australia’s largest energy retailer and generator, AGL plays an important role in powering the vehicles of the future, contributing towards the decarbonisation of Australia’s transport sector.
AGL is encouraging more road users to make the switch to electric vehicles, offering the first in market electric vehicle subscription service with carbon neutral options. The service provides consumers with the opportunity to experience life behind the wheel of an electric vehicle, without committing to ownership. Electric vehicles will play an important role in achieving Australia’s energy transition and the integration of electric vehicles in the Australian market is heavily influenced by initiatives that facilitate consumer access and developing technical insights to inform regulatory design. Facilitating the roll-out of electric vehicles is an important step in helping more Australians drive their way to a sustainable future.’

‘Australians are excited to realise the benefits of electric vehicles. The average Australian understands that electric vehicles help clean the air, cut carbon emissions, and reduce our dependence on imported oil. As early adopters, we hate pollution and want to see companies and governments working together, so we can join the world in racing ahead with electric vehicles. The leadership and insights from this report show how we can access the world’s best and most affordable electric cars to start seizing their benefits. Rideshare is an important tool to getting more people familiar with electric vehicles and maximising the benefits of lower operating costs and lower emissions.’

‘Evie Networks’ rideshare fleet demonstration has shown electric vehicles can have attractive economics in high kilometre applications. We’re building charging stations across Australia to suit the needs of rideshare, delivery and the general public. We believe that high kilometre drivers can lead the electrification of Australia’s transportation sector, with huge benefits in terms of productivity, air quality and emissions reductions.’

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‘With 10 years of experience with the 100% electric Nissan LEAF, we know people love driving electric, and that making the switch can help drivers to save money and reduce emissions. We are encouraged by this report from Uber, and their goals to increase zero-emission vehicles in Australia.
We look forward to Uber offering more opportunity to ride in EV’s across Australia’

‘Splend is excited to be converting our Australian rideshare subscription fleet to electric which we are in the process of doing in the UK already. We are locking in funding and vehicle supply to start rolling out next generation electric vehicles in partnership with Uber in Australia. Splend’s broader goal is to become the leading operator of electric vehicles in our markets. It makes sense for rideshare vehicles to be some of the first to go electric. Rideshare drivers can save money and most importantly we also get the environmental benefit of taking millions of tonnes of carbon emissions out of the atmosphere as our vehicles convert.’

The future of transport is undeniably shared and electric and we welcome Uber’s leadership in driving this vision. E-shared mobility provides significant opportunities to improve our cities through reduced noise, local air pollution and greenhouse gas emissions. However, achieving a sustainable transport future will require partnerships across the public and private sectors. The practical steps and policy options outlined in this report are a great example of how we need to work in collaboration to accelerate a greener transport future.’

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Table of Contents

Executive summary 7

Introduction 10

Total Cost of Ownership model 14

Methodology 15

Barriers and findings 17

State and territory TCO impacts 20

What Uber Driver Partners tell us 23

Driver partners and current vehicles 24

Triggers and barriers to EV uptake 26

Attitudes towards EVs and policy 27

Policies for an efficient, rapid, and just transition to EVs 30

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Executive Summary
The transport sector accounts for around a quarter of global emissions and is the only sector with growing emissions in OECD countries. Electric vehicles (EVs) will play a critical role in addressing this, especially as our energy mix continues to evolve and decarbonise. In addition to the lifecycle benefits that electric vehicle technology will bring to emissions reduction efforts in the coming decades, they also provide many other benefits. They improve health outcomes by reducing pollution and harmful noxious gases in our communities, reduce Australia’s reliance on foreign fuel and support the local economy creating new technology and manufacturing jobs.

Despite the social, environmental and economic opportunities EVs present, uptake in Australia is not high and indeed lags behind the rest of the world. So far in 2021, EVs made up only 1.57% of Australian new car sales1.
Meanwhile, countries like Norway and the United Kingdom were closer to 75% and 11% respectively2. Australia is also behind the rest of the world in the number of affordable models available to customers, with currently only five BEV and PHEV models currently available for purchase under $60,000 AUD. In comparison, the United
Kingdom has 38 models in that range.

In particular, there is a strong environmental-economic rationale for focussing attention on increasing EV uptake among high kilometre commercial drivers. Although small in number, these drivers all drive considerably more than the average person. If a BEV becomes a rideshare car as opposed to a car for personal use, 3-4 times the emission reduction benefits can be achieved3. Promoting electrification among this group will therefore have an outsized environmental benefit, as well as establishing a cohort of early adopters that can stimulate the conditions needed for mass electrification across society.

With this high kilometre use case in mind, Uber Australia wanted to understand the barriers that are currently facing rideshare drivers today. We built a rideshare-specific Total Cost of Ownership (TCO) model and surveyed our driver-partners to better understand what measures could help the high kilometre use case thrive.

Figure 1: Rideshare five year total cost of ownership, AUD

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Our TCO analysis identified four key barriers and findings for the EV rideshare use case:
1. Internal combustion engines and hybrids are currently up to 48% more economical for drivers
2. Lack of at / near home charging infrastructure increases ‘opportunity cost’ of charging time
3. EV road user charges will exacerbate existing cost gaps, adding $8,000 over five years
4. The high upfront cost of EVs is a major barrier for drivers, creating lengthy payback periods

The driver-partner survey supported these findings. Driver partners have a high desirability to switch, 57% of drivers told us they wanted to buy an EV in the next five years with only 11% saying they did not. The top two reasons given were first, lower running and maintenance costs, and secondly, to reduce climate emissions and live in a healthier city with less fumes. That said, what’s standing in their way is first and foremost the upfront cost - more than half of driver partners saw the lack of affordable EVs as the main barrier.

In response to this analysis, earlier this year Uber Australia introduced a 50% discount on its service fee between 1 July 2021 and 30 June 2022 for driver partners of battery electric vehicles. This will help address the first finding and reduce the interim cost gap between operating petrol cars and electric vehicles, but we still need to tackle the upfront affordability and charging infrastructure barriers.

Based on our knowledge of what has worked well in countries around the world, this report outlines how we can overcome the barriers to rideshare EV adoption and increase zero-tailpipe emission kilometres on Australian roads. The policy options outlined in this paper are designed to:
● Close the interim cost gap through incentives and regulations, especially among high kilometre drivers
● Ensure all high kilometre drivers can reliably access overnight charging at or near their home, where they
would normally park
● Delay EV-only road user charges and policies which widen the interim cost gap, particularly for high
kilometre vehicles
● Stimulate the market through standards and targets to ensure drivers can access long range BEVs at a
reasonable price

Uber wants to support the transition to EVs and want them to be a practical and economic choice for driver partners. However, to unlock the economic and environmental benefits of electric rideshare, meaningful collaboration is needed between governments and industry. From there we can leverage our platform, on which millions of trips are taken, to unlock more electric-shared mobility, improving environmental, health and economic outcomes for all Australians.

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Policies for an efficient, rapid, and just transition to EVs
Recommendation 1: Close the interim cost gap through incentives and
regulations, especially among high kilometre drivers
Policy options and levers:
● Provide upfront point of sale incentives for EV purchases (including second hand
vehicles), with outsized benefits for high kilometre drivers and drivers from
underserved and lower income communities
● Waive or reduce other fees and taxes such as stamp duty, registration and luxury
car tax
● Extend subsidies to fleet managers deploying vehicles for high kilometre use such
as rideshare car rental companies
● Give EVs urban access advantages such as temporary access to bus and high
occupancy vehicle lanes
● In the longer term, and only once incentive based measures have had a substantial
impact in narrowing the interim cost gap, governments could consider pricing and
taxing based on emissions - however these would need to be considered with
equity considerations in mind

Recommendation 2: Ensure all high kilometre drivers can reliably access
overnight charging at or near their home, where they would normally park
Policy options and levers:
● Support drivers to purchase and install L2 at-home charging infrastructure, such as
rebates for point to point drivers
● Support the rollout of suburban ‘near home’ public charging with kerbside ‘right to
charge’ policies
● Introduce EV ready building codes and laws to make it easier for renters and
people in multi-unit dwellings to install at home chargers
● Continue to support the roll out of rapid, affordable public charging networks in
metropolitan areas, ensuring equitable distribution across cities

Recommendation 3: Delay EV-only road user charges and policies which widen
the interim cost gap, particularly for high kilometre vehicles
Policy options and levers:
● Delay EV-only road user charges or at a minimum do not introduce without a
significant incentive program to ensure uptake is not adversely impacted
● Cap or make commercial EV drivers exempt from road user charges, either in
perpetuity or for ~5-10 years to encourage take-up of EVs
● Move away from fuel tax and toward a road user charging scheme for all cars,
under which EVs are discounted in the early years

Recommendation 4: Stimulate the market through standards and targets to
ensure drivers can access long range BEVs at a reasonable price
Policy options and levers:
● Introduce fuel efficiency standards comparable to other OECD countries, which
would also help lower the cost of fuel for all Australians
● Introduce ZEV sales targets and mandates on vehicle manufacturers and
distributors to increase EV supply
● Stimulate demand through point of sale incentives and removal of taxes targeted at
affordable and second-hand models (see recommendation 1)

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Introduction
The transport sector’s emissions are on an unsustainable trajectory which needs to be curbed
Emissions from transport comprise as much as one quarter of the global carbon footprint and 50 to 90% of urban air pollution4. A major contributing factor is the transport sector’s over reliance on fossil-fueled personal car use - which accounts for more than 60% of global ground travel5. Transport remains one of the most difficult sectors to decarbonise and it is the only sector in the OECD with growing emissions (see figure 2).

Figure 2: CO2 emission by sector, OECD economies6

In 2020 the COVID-19 pandemic provided temporary relief from emissions, pollution and congestion as cities around the world implemented shelter-in-place policies and citizens stopped moving. However as populations are vaccinated and cities begin to re-open, there is a concern that the COVID-19 pandemic risks further entrenchment of our reliance on fossil-fueled personal cars. The private car rebounded faster than shared modes and public transport after the first lock down7. And if people buy new fossil-fueled cars, there is also a very high ‘lock-in’ risk of another decade of traffic congestion and urban pollution. The pandemic, in addition to the extreme, climate-related weather events we have witnessed, highlights the urgency of the climate crisis. The recent Intergovernmental Panel on Climate Change report confirmed that we need to take action now. Global warming of 1.5°C and 2°C will be exceeded during the 21st century unless deep reductions in carbon dioxide
(CO2) and other greenhouse gas emissions occur in the coming decades8.

In Australia, the transport sector is the nation’s second largest source of greenhouse gas pollution and the private car is a major contributor. Around seven in ten Australians travel to work by car9 and unfortunately,
Australia’s vehicles remain among the most emissions-intensive in the world10. This means passenger vehicles represent 46% of all transport emissions11. At 0.7 vehicles per person, Australia has the 3rd highest rate of vehicle ownership among OECD countries12.

The electrification of transport is a critical part of the strategy to achieve carbon neutrality
Increasing EV adoption is a crucial part of meeting emission reduction targets and tackling climate change.
Globally, cities that can significantly increase EV use can lower carbon emissions by 40 to 70%13, by 2050.
However it is important to recognise that EV technology must be accompanied by rapid decarbonisation of electricity generation to achieve true carbon neutrality. It is also important when considering the role of EVs in tackling climate change to assess the full emissions life-cycle of EVs compared with the ICEs incorporating manufacturing and energy sources, both now and over time.

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The International Council on Clean Transportation found that emissions over the lifetime of average medium-size
BEVs registered today are already lower than comparable ICEs14 (see figure 3). As the electricity mix continues to decarbonise, the life-cycle emissions gap between BEVs and ICEs increases when looking at cars projected to be registered in 2030. This research also uses recent data on industrial-scale battery production and considers regional battery supply chains, resulting in significantly lower battery production emissions than in earlier studies. OEMs are working to make their manufacturing process truly zero emissions while also working with their suppliers to do the same across the chain. For example, Volvo received its first delivery of fossil-free steel in August 2021. It plans to start manufacturing concept vehicles from the steel in 2022, with mass production to follow15.

Figure 3: Lifecycle greenhouse gas emissions of BEVs and ICEs in global markets16

Australia, like many other countries, still relies on fossil fuels to power its electricity grid, with the energy mix differing considerably by jurisdiction. However, the Australian energy sector is decarbonising with significant progress in renewable energy technology, for example Australia has some of the highest uptake of rooftop solar globally. As Australia’s energy mix continues to evolve and include renewable sources, the emissions reduction benefits of EVs will grow over time. The carbon emissions from burning a litre of petrol cannot be changed, but the emissions intensity of electricity generation can.

Uber wants to maximise the opportunity EV rideshare presents to reducing emissions and increasing customer awareness
In September 2020, Uber made a global commitment to become a fully zero-emission platform by 2040, with
100% of rides taking place in zero-emission vehicles, on public transit, or with micromobility. Even today Uber’s rideshare platform in Australia, especially with products like Uber Pool and public transport integration, can help improve efficiency and reduce transport’s carbon footprint. As a signatory to the Shared Mobility Principles, we agree that public transport and shared fleets are crucial to transitioning towards sustainable mobility - and that electric vehicles will deliver climate and air quality benefits17.

The EV rideshare use case presents a unique and significant opportunity to policy makers to accelerate their emission reduction efforts and increase broader EV uptake through customer awareness. The average vehicle in
Australia travels roughly 12,000 kilometres each year18, rideshare drivers that use their vehicle five days a week might clock around 50-55,000 kilometres, over four times as much.

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It follows that the effect of shifting into a BEV will save four times more exhaust emissions for a rideshare driver than an average driver doing the same. Clearly, both groups of drivers must make the switch to a BEV, but prioritising change initially among the drivers with the greatest environmental impact should be the policy focus.
In addition, one EV on the Uber platform can move hundreds of people a month. Over time, ridesharing will play a role in accelerating the transition to electric mobility, by increasing public awareness and education19.

Given the significant opportunities of the EV rideshare and high kilometre use, this report examines some of the barriers currently facing this cohort in Australia today, how it differs from the broader EV market and best practice policy settings which are enabling EVs to thrive internationally.

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Terminology

BEV
Battery electric vehicle. A vehicle with no combustion engine. Runs exclusively on electricity.

EV
Umbrella term for all vehicles with an electric motor. Includes BEVs and PHEVs.

High kilometre driver
A driver who drives several multiples (1.5X or more) of the national average driving distance. Includes many commercial drivers such as ride-hail, taxi and delivery drivers.

Hybrid
An ICE that runs solely on liquid, combustible fuel but also includes a battery and electric motor to recover and use vehicle energy (e.g. when braking) and enhance fuel efficiency and vehicle performance.

ICE
A vehicle with an internal combustion engine. Runs exclusively on combustible, generally fossil-based fuels including petrol, diesel, and compressed natural gas.

Long range BEV
Our TCO model assumes 450km but more generally we take it to mean a BEV that can reliably manage a full driving day on a single charge in real world conditions.

OEM
Original Equipment Manufacturer. General term used in this report to describe automotive and vehicle manufacturers.

PHEV
Plug-in hybrid vehicle. A type of ICE hybrid with a much larger battery and greater all-electric range that can be both fueled by liquid fuel, like petrol, and plugged in to recharge with electricity supplied from the grid.

Short range BEV
Our TCO model assumes 300km but more generally we take it to mean a BEV that cannot manage a full driving day on a single charge in real world conditions.

TCO
Total Cost of Ownership. The total costs to the driver of owning, leasing or renting and operating a vehicle. A convenient way to compare driver costs of different vehicle types, on an “apples to apples” basis.

ZEV
Zero emission vehicle. Includes BEVs, as well as others with zero emission tailpipe performance such as fuel cell electric vehicles (FCEVs) 100% fueled by hydrogen.

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Total Cost of Ownership model
Bloomberg New Energy Finance predicts that rideshare drivers will be early adopters of electric vehicles, as the high kilometres driven allows them to realise the fuel saving benefits sooner. Currently EVs makeup 1.8% of total rideshare vehicles globally - but by 2040 it is estimated that 80% of rideshare vehicles will be electric20.
While this may prove to be correct, in Australia the transition has not yet begun. The proportion of BEVs and
PHEVs on the Uber platform represents a similar amount to the broader Australian fleet of less than 1% of all vehicles.

To deepen our understanding of the barriers faced by Australian rideshare drivers in owning electric vehicles,
Uber Australia built a local total cost of ownership (TCO) model. This analysis is pertinent as many driver-partners, particularly those who drive frequently, are very rational and would think of a TCO as similar to a profit and loss statement of their business.

While generic TCOs currently exist, an Australian rideshare specific model was important to explore the particular nuances related to this use case, driving patterns of rideshare drivers and local context.

Methodology
The TCO model accounts for all the costs of owning and operating a vehicle. This includes the upfront cost of acquiring and registering the car, as well as ongoing operating costs such as fuel, insurance and maintenance.
Importantly, a rideshare driver’s TCO calculation also includes opportunity cost, which is the consideration of lost earnings incurred during the time spent looking for and using an electric charge point (or in the case of an
ICE, a petrol station to refuel). While personal circumstances and preferences play an important role, choosing a vehicle that keeps TCO as low as possible is a key way in which rideshare drivers look to maximise their take home earnings.

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Features of the Uber ANZ TCO model
● Five year time period - vehicle purchase in Year 0 and resale at the end of Year 5.
● ‘Full time equivalent’ rideshare driver - assumes the driver partner will drive 7.5 hours a
day, 5 days a week, 48 weeks a year. While only a small percentage of driver partners
spend more than 40 hours per week on Uber, ‘full time equivalent’ driver partners have the
lowest cost per kilometre, and are in the best position to accelerate emissions reduction
and to be early adopters of BEV technology.
● Five different vehicle models
1. Typical rideshare ICE, $28K
2. Typical second-hand rideshare ICE, $15K
3. Typical rideshare hybrid, $30K
4. Short range BEV, $55K, 300km range
5. Long range BEV, $65K, 450km range
● Two charging scenarios
1. At home (L2) charging installed, use rapid public charging (L3) where necessary
2. No at home charging, driver uses rapid public charging (L3) only
The model assumes BEVs operate on an 80% range, remaining between 10% -
90% charge. This is generous as typically BEV manufacturers suggest remaining
between 20 - 80% to preserve battery life. We view 10 - 90% as more realistic.
● Variable inclusion of additional EV tax - the model considers the impact of an additional
2.5c road user charge for EVs. Note the ‘base case’ does not include this charge - refer to
Findings for discussion.

Key assumptions

Item Unit Value

Electricity $ per kWh - home charging $AUD $0.2921

Electricity $ per kWh - public charging $AUD $0.5022

Charger purchase and installation - home charging $AUD $2,000

Cost of fuel $AUD/litre $1.3123

Battery capacity - short-range BEV kWh 40

Battery capacity - long-range BEV kWh 64

Charging level - home charging kW 7

Charging level - public charging kW 100

Trips to public charging stations - when using # / day Min. 1 - max. 2

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TCO barriers and findings
1. Internal combustion engines and hybrids are currently up to 48% more
economical for drivers
Overall BEVs offer worse-off economics for rideshare drivers today, even when accounting for fuel savings. The high upfront cost of BEVs drives this. There are only a handful of BEVs under $60,000 currently available in
Australia. In addition, these more affordable models do not yet offer the range required for a rideshare driver to go a full day without having to recharge. In our model (see figure 4), the only BEV that can compete on TCO with a typical rideshare ICE is the long range BEV which has access to at-home charging, both costing their owners around $90,000 over five years. However even in this best case scenario, the BEV cannot compete with the typical rideshare hybrid which costs $70,000 over five years.

Figure 4: Rideshare five year total cost of ownership, AUD

2. At / near home charging infrastructure is vital to minimise the
‘opportunity cost’ of charging time
The model also demonstrates the importance of at or near home charging infrastructure so drivers can charge overnight and minimise the ‘opportunity cost’ of charging time. A driver with the long range BEV, with access to overnight charging, will take much less time to earn the same amount as a driver in the short range BEV who is reliant on public charging infrastructure. The TCO model shows that the cost gap between these two scenarios is up to $43,000 over five years.

Drivers can try to overlap their existing break time with charging times, however this does reduce their choice and restrict their movements. In addition, some public charging infrastructure stations are more suitable for taking a break than others, for example in shopping centres with access to food, stores and other amenities. In addition, as EV uptake increases, drivers will also need to account for wait times at public charging stations.

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Figure 5: Impact of charging scenarios on driving patterns

3. EV road user charges will exacerbate existing cost gaps, adding $8,000
over five years
We did not include a BEV and PHEV road user charge in our Australian base model as at the time of publication only one jurisdiction, the state of Victoria, has confirmed they will introduce one in the next five years with legislation passing through parliament. However it is important to be aware of the significant impact it has on the rideshare use case (see figure 6). At 2.5 cents per kilometre, it adds $8,000 over five years to the TCO for rideshare drivers, four and a half times what the average driver who owns an EV could expect to pay ($1,700)24.

This is not surprising given that rideshare vehicles travel more kilometres than an average vehicle, and you would expect to see similar results with other high kilometre use cases such as taxis and freight. However it acts as a disincentive for those high kilometre use cases to convert to electric at a time when the cost gap between ICEs and EVs has not yet closed (see finding 1).

Figure 6: Rideshare five year total cost of ownership + 2.5 cent EV road user charge, AUD

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4. The high upfront cost of EVs is a major barrier for drivers, creating
lengthy payback periods
Finally, the high upfront cost of EVs is a major barrier for the vast majority of driver partners. It would take almost twice as long for drivers to recoup, via earnings, the upfront capital cost of the long range BEV, when compared to the typical rideshare ICE (see figure 7). As discussed in Finding 1, this is particularly a problem in the Australian market which has fewer affordable models available. Uber analysis found that Australia has five
BEV and PHEV models under $60K AUD. For comparison, the United Kingdom, which is also a right hand drive market, has 38 vehicles in that range. The high upfront cost of BEVs, particularly for long range vehicles, is the biggest barrier currently to EV rideshare uptake in Australia.

Figure 7: Payback period comparison to typical rideshare ICE*

* Notes:
1. Ratio of upfront vehicle cost to weekly take home earnings, relative to typical rideshare ICE. Uber analysis shows that in the current
market, a long-range BEV will take 1.8 times longer than a rideshare ICE to pay off.
2. Costs and earnings are based on a driver spending 37.5 hours per week on the platform, 48 weeks per year with L2 home charging
installed.

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State and territory TCO impacts
The above TCO model gives an Australian ‘average’ but it is important to be aware that the TCO will differ by states and territories reflecting local electricity and fuel prices as well as government policies and incentives.

Point of sale incentives
In 2021, a number of Australian jurisdictions announced upfront point of sale incentives as part of their broader
EV strategies and plans to eventually introduce road user charges.

The Victorian Government is providing $46 million for a consumer subsidy program for 20,000 ZEVs, with the first round offering $3,000 for the first 4,000 vehicles under $68,740. Details on how the remainder of the fund will be dispersed have not been confirmed at the time of publication.

The NSW Government released its NSW Electric Vehicle Strategy in June 2021 which included a range of new measures in addition to those already announced in the Net Zero Stage 1: 2020-2030 Plan. The NSW
Government will provide rebates of $3000 for the first 25,000 BEVs sold for under $68,750.

Debate in South Australia around incentives and road user charges is still underway but in August 2021, the government was also considering $3,000 point of sale incentives as part of a package to introduce road user charges in 202725.

Registration and tax exemptions
A centerpiece of the NSW Government's strategy is to use the transition to EVs to phase out the inefficient stamp duty tax. In addition to its point of sale incentives, it will remove stamp duty from EVs under $78,000 and from all other EVs and plug-in hybrids from 1 July 2027, or when EVs make up at least 30% of new car sales.
Only at this time will it introduce its road user charge on EVs at 2.5 cents per kilometre.

ACT residents who buy an electric vehicle are eligible for two years free registration until mid-2024. Zero emission vehicles are also exempt from stamp duty. In addition to these policies, the ACT Government has announced it will introduce a program of zero-interest loans of up to $15,000 for eligible households and NFPs to purchase zero emissions vehicles along with other sustainable products.

The Tasmanian Government has committed to waive stamp duty for EVs purchased in Tasmania for the next two years. For a new mid-range EV, this will reduce initial purchase costs by around $2,000.

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Road user charging
The Victorian Government passed legislation for an EV road user charge which was implemented on 1 July
2021. At 2.5 cents per km, this adds $8,000 over five years to our rideshare TCO.

As previously discussed the NSW Government have also announced plans to introduce a 2.5 cent road user charge but will delay introduction until 2027 or EVs reach 30% of new car sales, whichever comes first. While this will add $8,000 to the TCO, we can expect by 2027 other parameters, such as the cost of vehicles, petrol and electricity, will have changed. Rideshare drivers will also save on the stamp duty exemptions.

As discussed above, the South Australian Government is also considering a proposal to introduce a road user charge but delay its implementation to 2027.

Cost of electricity
The TCO model assumes a residential electricity cost of 29 cents per kWh based on a national average published by the Australian Energy Market Commission but costs do vary significantly by state. In 2019/2020, residents in Tasmania and South-East Queensland had some of the lowest electricity costs in the country while residents in South Australia paid more (see figure 8). Policies which help to lower electricity prices will help to close the interim cost gap for rideshare drivers. The electrification of transport also provides for opportunities such as off-peak pricing and distributed storage, which could further lower costs.

Figure 8: Average electricity usage rates per kWh by state, 2019-202026
Average electricity usage
State
rates, cents/kWh

South-East Queensland 25.45
New South Wales 30.65
ACT 27.50
Victoria 29.28
South Australia 37.68
Tasmania 24.59

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Case study 1: Evie Networks rideshare demonstration,
South East Queensland

Evie Networks was founded in 2017 to accelerate the uptake of electric vehicles by building Australia’s largest fast charging network. Based on strong adoption patterns overseas, Evie launched a demonstration rideshare fleet in January 2020 to verify the economics and learn how drivers would use charging infrastructure in the Australian context.

Seven Hynudai Ioniqs were rented to rideshare drivers in South East Queensland. They were rented on an all inclusive basis; i.e. $450 a week including the car, charging and unlimited kilometres. The inclusive pricing gave the drivers certainty around the low running costs of the vehicle. Note that most of the drivers did not have access to at-home charging infrastructure and therefore relied solely on the public charging networks.

Since launch, over 250,000 kilometres have been completed, and a number of key learnings identified:
● Drivers quickly adapt to new ways of working with EVs, e.g. managing their state of charge and
opportunity charging during breaks.
● The vehicle performance and reliability were excellent even while averaging over 1,000km per week.
● Small changes in weekly economics have a big impact on drivers, for example, Uber’s recently
announced 50% service fee reduction has been an excellent incentive with more drivers actively
seeking EVs to rent today.

Evie Networks is building chargers across the country to serve all drivers while recognising the special needs of high kilometre applications like rideshare, taxis and deliveries. One of the first Evie sites was located at
Brisbane Airport, featuring four chargers to minimise the queuing time for busy drivers. Evie also gives as much priority to building stations in suburbs where drivers live as it does to suburbs where drivers might find demand from riders. Evie is happy to share detailed learnings from the continuing fleet demonstration.

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What Uber driver partners tell us
Our total cost of ownership model was crucial in determining the economic and practical barriers to EV uptake among full time-equivalent rideshare drivers in Australia. However, it was also important to understand the attitudes of driver partners to EVs and what they see as the main barriers preventing them from making the switch. We undertook a survey of 600 driver partners across all states and territories in Australia in April 2021.

Driver partners and current vehicles
The vast majority of Uber driver partners surveyed use internal combustion engines with over 2 in 3 driver partners using petrol cars and a further 17% using hybrids (see figure 9). The make up of electric vehicles on the Uber platform reflects the broader Australian EV fleet, less than 1%.

Figure 9: Distribution by current vehicle type - Australian driver partners

Reliability, comfort and fuel efficiency were among the top reasons why driver partners use their current vehicle.
Interestingly, petrol car drivers were more likely to state affordability as a reason for choice and hybrid drivers were more likely to state fuel efficiency as a driver of choice. This could make hybrid users a potential earlier adopter in the EV switch, however in our TCO analysis we saw the interim cost gap for BEVs is currently largest when compared to hybrids at $20-30,000 difference.

There is high motivation and desirability among Uber driver partners to make the switch to an EV in the next five years. More than half of driver partners would want to but 33% are unsure (see figure 10). This ambiguity is indicative of an absence of information on when and how this new class of vehicle will become readily available and accessible.

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Figure 10: Preference to switch to an EV in the next 5 years - Australian driver partners

While there is high desirability to switch, less than 1 in 5 driver partners think their next car will be an EV. Half of driver partners think that their next car will most likely be a hybrid, and even among driver partners currently driving ICEs, more are intending to upgrade to a hybrid than to remain with an ICE.

Figure 11: Indication of most likely next vehicle purchase - Australian driver partners

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Triggers and barriers to EV uptake
69% of driver partners chose the lower running and maintenance costs as main reasons to switch to EVs. While economic benefits were the most attractive, environmental benefits were still important with 40% of driver partners identifying climate change and reducing urban pollution as the main benefits. Driver partners who intended for their next vehicle to be an EV over-indexed on the environmental reasons to switch.

Figure 12: Indication of major reasons to switch to an electric vehicle - Australian driver partners

Driver partners are aware of the high upfront cost of EVs and lack of affordable model availability in Australia with more than half of drivers identifying these as the main reasons not to switch to an EV. 29% stated concerns about lack of rapid public charging infrastructure, though this was further down the list.

However, driver partners who do not want to switch to an EV in the next 5 years were significantly more likely to endorse range related concerns as a main reason for not making the upgrade (see figure 13). Among those who were unsure about switching to EVs in the next 5 years, recent vehicle purchases emerged as a barrier, and suggests the need for clear ‘exit routes’ for car owners.

Only 15% identified not being able to install an at home charger as a barrier while 29% said there was not enough rapid public charging infrastructure. 57% of driver partners said they would have space to install at home charging infrastructure suggesting that perhaps driver partners are not yet fully aware of the importance of at home charging infrastructure to minimise the opportunity cost of charging time. This is not surprising as many driver partners may not have looked past the immediate and largest barrier which is the upfront cost.
However it does reinforce the importance of public charging infrastructure as a visible sign to the broader community about Australia’s preparedness for EV uptake.

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Figure 13: Barriers to EV uptake by desirability to switch - Australian driver partners

Attitudes towards EVs and policy
The benefits of EVs for the environment is appreciated by most driver partners (75%), though a lack of charging infrastructure (74%) and concerns about range (62%) are comparably salient. Driver partners are split on their assessment of whether EVs are economical to run as rideshare vehicles (see figure 14).

Figure 14: General attitudes towards EVs - Australian driver partners

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The government is seen by driver partners as the party primarily responsible for driving the adoption of electric vehicles at 48%. 20% of driver partners identified private business, while 32% believed individuals were responsible. With the upfront cost identified as the major barrier it makes sense that driver partners identify financial support and subsidies from governments as one of the most helpful interventions (see figure 15). Secondary to this were government policies and interventions that would attract more affordable
EV models to Australia. Driver partners also saw a role for the government in supporting the roll out of charging infrastructure in cities including at-home charging.

Figure 15: Driver perception of best ways for government to support uptake - Australian driver partners

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Case study 2: Clean Air Plan London27

In 2018 Uber announced its Clean Air Plan (the Plan) – with a bold aim for every car on the app in the capital to be fully electric in 2025.

Uber’s Plan aims to address some of the key challenges driver partners face in upgrading to cleaner vehicles.
From January 2019, a ‘clean air fee’ was included on every trip booked through the Uber app in London that goes towards helping drivers to upgrade to an EV and other clean air initiatives. The amount of support drivers receive is based on the number of miles they drive on the app.

Early data shows the Plan is having a positive impact. Since launch, we have raised more than £135m to support drivers transitioning to EVs and more than 3.5 million trips have taken place. In April 2021, we were able to launch Uber Green with fully electric vehicles and London is already its biggest global market.

Despite this progress, we still have a long way to go to reach 100% by 2025. Our plan now is to make sure that drivers can use the Plan’s funds as easily and simply as possible, as well as providing them with a range of other benefits when they upgrade to an EV:
● Drivers will be able to purchase or lease vehicles at discounted rates thanks to our partnerships with
Nissan, Hyundai, Kia, Otto and WeFlex.
● Drivers can use bp Pulse’s public charging network at a discounted rate. Drivers can also access
Uber dedicated charging points at a series of rapid charging hubs in London.
● There will be discounts on home chargers from bp Pulse, PodPoint and EO.
● Drivers will be working directly with Arrival to design a unique electric vehicle specifically designed for
ride hailing, to enter production in 2023.
● Drivers can access low interest rates of less than 5% when financing the purchase of an electric
vehicle.

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Policies for an efficient, rapid, and just transition to EVs
There is a significant amount of investment and innovation in the private sector to increase EV uptake around the world. OEMs are designing more affordable, longer range models, companies are building out their charging infrastructure networks and fleet owners are investing in making the switch.

In Australia, Uber introduced a 50% discount on its service fee between 1 July 2021 and 30 June 2022 as a mechanism to reduce the cost gap between operating petrol cars and electric vehicles. While this means we are operating at a loss on those trips, we consider it to be an important investment to encourage the number of shared electric trips on our platform.

Globally, Uber has a range of programs and investments in place to help drivers. These include the launch of our Uber Green product in North America and Europe, as well as business partnerships with charging infrastructure providers and vehicle manufacturers to give Uber driver partners unique access or discounts (see case study 2: London Clean Air Plan). Uber and other private companies will continue to invest, but we can’t go it alone.

Policy opportunities for Australian governments
It is not surprising that countries with the highest levels of EV uptake, such as Norway and the United Kingdom, also have clear policy settings and regulations driving individuals and businesses to switch to electric.
Government guidance is crucial to ensuring a coordinated and equitable transition, giving the private sector the confidence to invest.

We want to work with industry and governments at all levels to ensure the right policy settings are in place to enable EV rideshare to thrive. The TCO analysis and driver partner survey identified four key barriers to EV rideshare uptake in Australia. This chapter outlines policy recommendations to address these.

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Barrier 1: Internal combustion engines and hybrids are currently up to 48% more economical for drivers

1. Close the interim cost gap through incentives and regulations,
especially among high kilometre drivers

The interim cost gap between EVs and combustion vehicles must be reduced and closed before we will begin to see significant uptake in rideshare. International jurisdictions, not satisfied with waiting for the cost gap to incrementally close, have addressed this through a mixture of policies which do one of two things; make EVs cheaper or make combustion engines more expensive.

Point of sale incentives, such as flat-rate discounts on the purchase price or discounts and waivers from taxes help reduce the upfront cost of EVs, particularly affordable models. In Germany, the government provides a subsidy of €6,000 for BEVs under €40,00028. In California, drivers can access a US Government tax credit of
$7,500 USD in addition to a state government rebate up to $7,000 USD, the latter of which is scaled depending on household income. In Greece, recognising the environmental benefits of incentivising high kilometre vehicles, the government provides an environmental bonus to taxi owners for up to €8,00029. As discussed in chapter 2,
Australian jurisdictions are beginning to introduce point of sale incentives for affordable BEV models as well as waivers on stamp duty and registration fees. It is important that any subsidies are also extended to the second hand vehicle market as well as fleet operators, both of which have a significant role in the provision of vehicles on rideshare platforms.

Governments can also introduce urban access policies which help tilt the economics in favour of EVs over ICEs.
These could include temporary access to bus and high occupancy vehicle lanes, for example Norway has allowed EVs in bus lanes since 2005, or prioritised kerbside access.

A number of European countries, with more mature EV markets, have introduced one-time, annual or semi regular taxes on ICE vehicle owners based on climate-related emissions. For example, in the Netherlands, a motor vehicle tax30 on car owners is collected quarterly and based in part on vehicle weight and fuel type with
BEVs exempted. In the interests of supporting a just and equitable transition to EVs, it would be premature to introduce such measures before incentives and standards had succeeded in making EVs more widely available in Australia. Once positive measures have had an impact in closing the interim cost gap however, governments could consider policies such as these with equity considerations front of mind. For example only applying them to new vehicle registrations, introducing them over time or establishing a temporary rebate credit for lower income communities.

Policy options:
● Provide upfront point of sale incentives for EV purchases (including second hand vehicles), with
outsized benefits for high kilometre drivers and drivers from underserved and lower income
communities
● Waive or reduce other fees and taxes such as stamp duty, registration and luxury car tax
● Extend subsidies to fleet managers deploying vehicles for high kilometre use such as rideshare car
rental companies
● Give EVs urban access advantages such as access to bus and high occupancy vehicle lanes
● In the longer term, and only once incentive based measures have had a substantial impact in
narrowing the interim cost gap, governments could consider pricing and taxing based on emissions -
however these would need to be considered with equity considerations in mind.

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Barrier 2: Lack of at / near home charging infrastructure increases ‘opportunity cost’ of charging time

2. Ensure all high kilometre drivers can reliably access overnight charging
at or near their home, where they would normally park

Access to overnight charging infrastructure at private homes, multi-unit dwellings, and kerbside is crucial. Our
TCO analysis found the economics stacked up much faster for drivers who could charge their car overnight as opposed to those reliant on public charging infrastructure throughout the day. This is consistent with international research (see figure 16)31.

Figure 16: Electric vehicle cost by charging infrastructure

Source: International Council on Clean Transportation, 2019

‘Right to plug’ or ‘right to charge’ laws have been passed in jurisdictions like Spain32 to ensure renters and owners in multi-unit housing can install charge points without having to obtain (potentially difficult) consent from the tenant's landlord or from the other co-owners.

Governments can also introduce EV charging equipment and installation grant programs, potentially targeting lower income areas or multi-unit housing owners. The Los Angeles Department of Water and Power offers up to
$4,000 USD per charger for multi-unit dwelling owners, with $1,000 USD extra per charger for buildings located in disadvantaged communities.

However in many dense urban areas, drivers may not have access to off street parking and the ability to install a charger. In these cases, a network of ‘near home’ chargers is essential. It is also important that these chargers are equitably distributed across a city and London provides a valuable illustration of this (see figure 17). The greatest number of charge points in the city can be found in Westminster which, while including some low income areas, has the third highest median salary of any London borough. Yet the greatest concentration of drivers using the Uber app reside in Newham in East London, the borough with the second lowest median salary. As shown by the map below, if drivers on Uber were all to use BEVs, then overnight charger demand would be highest in East London, which is poorly served by public charging infrastructure when compared to other parts of the city.

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Figure 17: Charging infrastructure, London 2020

‘Right to plug’ policies should be extended to the kerb via a public-private demand-driven kerbside charging programs coordinating between EV drivers, qualified local charge point installers and utilities, and city government officials. Amsterdam introduced its demand driven charging infrastructure program and as of 2018 has a network of 3800 charging points across this city33. With up to 90% of residents and workers in
Amsterdam relying upon on-street parking, the program was designed to give a right to request a charger installation to those either with a BEV or intending to purchase one, and with no existing chargers within 300 metres of their residence. A charger would then be operational within 4-6 months. The policy has been a success: not only did it address potential concerns about the availability of chargers, it also resulted in high utilisation as chargers were placed where demand was assured.

While we see overnight charging as important to the EV rideshare use case, that is not to say that rapid public charging is not also critical. Many drivers will not be able to access overnight charging and will require fast, affordable, public charging infrastructure at key locations. In addition, until more affordable long range EVs come onto the Australian market, many drivers will continue to rely on a public charging network. Finally, we also saw through the driver-partner research that public charging infrastructure across metropolitan areas is an important visible signal to rideshare drivers. It reassures them, and the broader Australian community, that we are prepared to switch to electric and helps to reduce range anxiety.

Policy options:
● Support drivers to purchase and install L2 at-home charging infrastructure, such as rebates for point
to point drivers
● Support the rollout of suburban ‘near home’ public charging with kerbside ‘right to charge’ policies
● Introduce EV ready building codes and laws to make it easier for renters and people in multi-unit
dwellings to install at home chargers
● Continue to support the roll out of rapid, affordable public charging networks in metropolitan areas,
ensuring equitable distribution across cities

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Barrier 3: EV road user charges will exacerbate existing cost gaps, adding $8,000 over five years

3. Delay EV-only road user charges and policies which widen the interim
cost gap, particularly for high kilometre vehicles

The use of roads has a number of costs to society, many of which are not captured by current fees and charges. They include; the cost of congestion, the cost to the environment (both local and global) and the cost of road building and maintenance.

Transport planners and economists have for many years grappled with how to reform road pricing in a way that fairly reflects all these costs and is politically feasible. One idea that has been introduced in recent years is to use the transition to electric vehicles as a way to apply a per kilometre tax exclusively on BEVs and PHEVs.
However it is premature to introduce new taxes on EVs at a time when they have not reached cost parity in the
Australian market and an interim cost gap exists, even with petrol cars paying fuel excise. It is also ‘robbing
Peter to pay Paul’ as while you may get some extra revenue for road maintenance, you will worsen the environmental cost of road use as the tax will act as a disincentive slowing the transition to greener vehicle technology.

Uber fully supports road reform and agrees that in the medium to long term we must reform and modernise the way we pay for the costs of road use. This is also important as we work towards a mobility-as-a-service future where the private car is no longer the dominant mode of transport. However, timing is everything. University of
Queensland research on consumer choices found that without any significant incentives, even small taxes like road user charges, could reduce uptake by 50%34. Unless governments also introduce a significant incentive package, introducing these charges today, before the interim cost gap has closed, will dampen EV uptake. This is especially the case for the high kilometre vehicle use case which, not surprisingly, will pay more than your average road user. This is problematic as governments should be encouraging e-shared mobility, not disincentivising it.

When EVs make a more substantial share of the fleet and the cost gap has closed, it makes absolute sense to introduce these charges. Recently jurisdictions like NSW and New Zealand have announced their intention to introduce a road user charge but have sensibly delayed its introduction into the mid-2020s so EV uptake is not dampened as a result.

Policy options:
● Delay EV-only road user charges or at a minimum do not introduce without a significant incentive
program to ensure uptake is not adversely impacted
● Cap or make commercial EV drivers exempt from road user charges, either in perpetuity or for ~5-10
years to encourage take-up of EVs
● Move away from fuel tax and toward a road user charging scheme for all cars, under which EVs are
or discounted in the early years

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Barrier 4: The high upfront cost of EVs is a major barrier for drivers, creating lengthy payback periods

4. Stimulate the market through standards and targets to ensure drivers can
access long range BEVs at a reasonable price

Drivers considering switching to BEVs need to consider the upfront costs associated with purchasing the vehicle: not only the sticker price, but also the cost of financing it. Lack of affordable BEV models, especially affordable long range models, is a global challenge but is particularly acute in Australia. Australia currently only has five BEVs and PHEVs under $60,000 AUD, none of which have long enough ranges to operate a full day on the Uber platform without the need to recharge. The United Kingdom has 38 models under $60,000 AUD and the state of California has 18. So why is this the case?

The main problem is that vehicle manufacturers are not encouraged, either through regulations or incentives, to prioritise Australia as a market. Fuel efficiency standards in Europe and North America mean global OEMs prioritise these markets. In addition, aggressive fossil-fueled vehicle sale phase out dates, such as the United
Kingdom’s ban petrol and diesel vehicle sales by 2030, and zero emission vehicles sales mandates, such as
California’s ZEV mandate on vehicle manufacturers, give manufacturers policy direction and help increase BEV supply in those markets.

Researchers around the world are trying to predict when EVs will reach cost parity with internal combustion engines, with some saying it could be as soon as the mid-2020s35. However, we can expect that whatever this global date may be, cost parity in Australia will almost certainly be later unless more is done to encourage vehicle manufacturers to prioritise their greener technologies for our market.

The high upfront cost was identified in our TCO analysis as the single largest cost factor to drivers, highlighting the urgent need for policies which will help to increase BEV supply and lower the costs for drivers.

Policy options:
● Introduce fuel efficiency standards comparable to other OECD countries, which would also help
lower the cost of fuel for all Australians
● Introduce ZEV sales targets and mandates on vehicle manufacturers and distributors to increase EV
supply
● Stimulate demand through point of sale incentives and removal of taxes targeted at affordable and
second-hand models (see recommendation 1)

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Case study 3: SPARK! Partnering to electrify Europe36
In 2020 Uber released a policy white paper, SPARK! Partnering to electrify Europe. While the European EV market is much further progressed in terms of uptake, there are similarities in many of the barriers facing rideshare drivers in Australia. The white paper firstly outlines the opportunity the electrification of high kilometre commercial vehicles could play in supporting emission reduction targets and mass uptake of EVs.

Uber identified three core barriers that currently make switching to an EV an unlikely economic choice for high kilometre commercial drivers. These are:
1. The lack of appropriate charging
2. The lack of affordable / second-hand BEVs
3. Insufficient financial incentives to close the interim cost gap

In recognising the importance of a supportive policy environment to enable the electrification of transport to thrive, the white paper outlines policy principles and recommendations to governments. The illustration below is a simple simulation of how the impact of these policies could layer together.

37
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36. Uber 2020, SPARK! Partnering to electrify in Europe, available via: https://www.uber.com/us/en/about/reports/spark-partnering-to-electrify-europe/

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