Uber to charge 'clear air' fee to Londoners in effort to ditch fuel-run cars

Heavy traffic congestion, lack parking slot availability, poor quality roads, expensive vehicle ownership cycle and reducing resale value are some of the reasons why more people are preferring ride-hailing platforms like Ola and Uber. In cities people prefer taking taxis for commute rather than owning and driving themselves (Image: Moneycontrol)

Uber has announced that it will bill an additional surcharge to consumers in London under the company’s ‘Clean-Air’ Plan. The ride-hailing service in its statement said that the surcharge would go towards helping drivers purchase electric cars.

Uber shared its plan to have an all-electric fleet by 2025, ditching the current cars that burn a lot of fossil fuels.

The company has stated that consumers would have to pay 15 pence (USD 0.19) per kilometre under the campaign. Stats revealed by the company that an average trip in London is roughly about three miles (4.8km), so that means riders will have to pay 45 pence (USD 0.58) for a ride.

The company confirmed that all drivers in London would be eligible to receive the surcharge amount to purchase electric cars. Each driver will receive the amount of money based on how much he has driven.

For instance, if a driver drives for 40 hours a week, he could expect to get around £3,000 ($3,865) in two years and £4,500 ($5,787) in three years.

Once the driver buys an electric car, the surcharge fee will be used to subsidise the vehicle’s maintenance costs. Uber expects that an estimated 20,000 drivers will upgrade to electric vehicles by the 2021 and estimates about raising £200 million ($257 million) in helping drivers purchase battery-operated vehicles.

Dara Khosrowshahi, CEO of Uber said, “The Mayor of London has set out a bold vision to tackle air pollution, and we are determined to back it”.

He further added that Uber’s £200 million campaign is a long-term investment and the company aims to achieve its all-electric goal by 2025.

The company has partnered with several home charging suppliers who can provide charging options to Uber drivers using their app while their cars are parked at their homes.

Uber has been in the news globally and in the UK for the wrong reasons. Earlier, its licence was revoked by London’s transportation authority over safety concerns.

The company, however, later won a probationary licence that requires a verified audit of operations every six months. Transport for London ruled that all private for-hire vehicles, including Uber, would no longer be exempted from the £11.50 daily congestion charge for driving in central London. Only electric cars will be exempted from paying the fee which may be one more factor for Uber to go all-electric.