Uber to buy Tesla EVs for Japan’s taxi market

Uber will create a new fleet of Tesla cars to enter Japan’s taxi market, reveals a Japanese newspaper.

Nikkei reported that Uber wants to take part in the Japanese government’s recent decision to re-introduce ridesharing.

The Japanese government has decided to approve ride-sharing service partially in April 2024 as one of the Digital Administrative and Fiscal Reform efforts. Initially, taxi operators can be ride-sharing operators in particular local areas suffering a shortage of taxis.

“We will respond to the ride-sharing challenges in the light of serious local transportation issues,” Prime Minister Fumio Kishida said.

The government will expand non-profit transportation services that can be operated by local governments, chambers of commerce, Japan Agricultural Cooperatives, and so on in addition to deregulation of taxi operations.

According to the plan, the ridesharing company initially planned to roll out 30 Tesla Model Y electric vehicles. However, it will expand to 100 EVs throughout 2024.

Uber Tesla

However, the cost of ridesharing would be 20% higher than typical local taxis.

Uber is making efforts to adopt new electric vehicles (EVs) to become a zero-emissions mobility platform by 2040. It aims to invest $800 million to provide resources for EV transition around the globe.

Under its current progress, the Uber platform is increasing rapidly with over 1.2 million rides taken in EVs in Australia alone in Q3 2023.

(via – Teslarati)