Electric cars are becoming an attractive business proposition for high-mileage vehicle operators such as ride-sharer Uber in key EU capitals such as Paris, Berlin, Madrid and Lisbon, a new study by research and campaign group Transport & Environment (T&E) has found.

Medium-sized battery-electric cars are on average 14% cheaper to run than equivalent diesels today, if slow charging overnight near home and/or fast charging at preferential rates are available. The savings can be higher (24%) in the case of Parisian drivers. In monetary terms, these savings amount to €3,000 (US$3,400) every year. This is because of cheaper electricity, lower EV retail prices and higher purchase incentives in France.

The taxi and ride-hailing markets are best positioned to go fully electric first. The economics of EVs—more expensive to buy but a lot cheaper to run—match perfectly with high-mileage, low-margin businesses like ride-hailing and taxis. Uber-type drivers can do up to five times more kilometers than an average motorist.

This is a win-win-win situation for drivers, citizens and the planet. The sooner Uber and taxis go 100% electric, the sooner citizens will enjoy cleaner air and quieter neighbourhoods, the planet will have less climate-wrecking emissions and drivers will earn more money. If Uber wants to lead the change and be part of the solution for our cities, then the company should commit to 100% electric rides by 2025 in key European capitals.

—Yoann Le Petit, new mobility expert with T&E

As cities and countries announce bans on diesel and petrol cars to fight air pollution and climate change, the appeal of driving emissions-free vehicles such as electric cars increases.

In London, the Mayor’s EV infrastructure taskforce estimates that 70% of the demand for slow and normal chargers in residential areas will come from Uber drivers alone.

Charging is a key barrier for the uptake of EVs by professional drivers. Because slow charging is cheaper and publicly accessible but takes several hours, slow charging stations in residential areas where drivers live is key to significantly reducing operating costs. In parallel, dedicated fast chargers are needed for EV drivers to top up during the day, while having a break or waiting for customers.

T&E’s lifecycle CO₂ emission calculator estimates that today EVs cut CO₂ emissions by two-thirds on average across Europe compared to diesel cars. Because of Uber drivers’ high mileage, the climate benefits of replacing a combustion car with an EV in this sector are even greater.

Due to the EU’s CO₂ targets, the European EV market will reach a 10% market share in 2021. By then more than 200 different EV models will be available in the showrooms. These models will be even more affordable thanks to the recent recovery measures announced by the German and French governments, which include new EV purchase incentives.

The #TrueCostOfUber campaign has now launched in Madrid and Lisbon. The campaign calls on Uber to go 100% clean in large European cities by 2025. It kicked off last November in the US, France, Germany, Belgium, The Netherlands and the UK.

The number of drivers for apps such as Uber, Bolt and Kapten has mushroomed in recent years. In Paris, the fleet of ride-hailing drivers tripled in the past four year, from around 10,000 in 2016 to about 30,000 today. Current mayor Anne Hidalgo has committed to require the ride-hailing sector to go zero-emission should she be re-elected on 28 June.

In Portugal, the number of drivers also tripled in 2019 to reach almost 20,000 professional drivers. In London, the largest market for ride-hailing services in Europe, there were 88,000 active Uber-type drivers in 2018.

Air pollution is the biggest environmental health risk in Europe, according to the European Environment Agency. People living in polluted cities are more at risk from COVID-19, the European Public Health Alliance has warned.