California regulators are set to discuss imposing on ride-hailing companies Uber (NYSE: UBER) and Lyft (NASDAQ: LYFT) a mandate to log 90% of their total mileage in electric vehicles by 2030. The proposed regulation comes at the heels of the US government’s push of its electric vehicle agenda.
The California Air Resources Board is set to discuss the proposal which aims to further curb the climate impact of emissions from ride-hailing fleets. In comparison, Uber and Lyft logged less than 1% of miles traveled in electric vehicles in 2018, up from 0.05% in 2014.
Under the proposal, Uber and Lyft drivers must log 2% of miles traveled in electric vehicles by 2023, 30% by 2026, and 90% by 2030.
Both ride-hailing companies have expressed agreement to the proposal but are asking for state support and flexibility in implementing the mandate. In a statement written to the regulatory board, Lyft says, “While we are pleased to see aggressive environmental targets, we are disappointed that the efforts of the past years have culminated in metaphorical sticks with no carrots.”
On the other hand, advocate groups and drivers are calling to ensure that the companies cover the costs of electrifying their fleets, and not to be passed on drivers. Nicole Moore of the Rideshare Drivers United argues, “This is going to basically be a green badge of honor for Lyft and Uber, when it’s the drivers that are paying for this conversion. And it’s not right.”
Lyft has previously pledged to electrify its entire fleet by 2030 while Uber has a 2040 full electrification goal for US, Canada, and European cities.
Uber last traded at US$49.47 on the NYSE while Lyft last traded at US$52.21 on the Nasdaq.
Information for this briefing was found via EnergyNews and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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