Uber and BYD just signed a massive deal to bring 100,000 new electric vehicles onto the Uber platform across key global markets. Starting in Europe and Latin America, then expanding to the Middle East, Canada, Australia, and New Zealand. This is exactly the kind of partnership that should exist—and I'm frustrated it can't happen in the US for political reasons I'll get to.

Here's why this matters: Uber has the largest on-demand EV network globally, and BYD is dominating EV production worldwide. BYD's figured out how to build affordable, reliable EVs at scale. Uber's figured out how to deploy them efficiently through high-utilization ride-hailing. Put them together, and you solve the biggest barrier to EV adoption among drivers: upfront cost.

The efficiency case for EVs in ride-hailing is overwhelming. Uber drivers go electric five times faster than private car owners because they actually do the math—when you're driving 100+ miles per day, electricity beats gasoline on pure economics. But price and financing availability are still the main obstacles. BYD solves the price problem. Uber solves the financing and distribution problem.

Uber's now profitable and in the S&P 100, which means they can invest in these strategic partnerships without burning cash. This is the kind of move you make when you've got solid fundamentals and you're thinking long-term.

BYD's vehicles are perfect for rideshare. Lower maintenance costs, superior battery performance, wide range of models, and solid build quality. The partnership includes potential discounts on charging, maintenance, insurance, plus financing and lease offers tailored to each market.

What's really interesting is they're also collaborating on future autonomous-capable BYD vehicles to deploy on Uber's platform. Uber's positioning itself as the distribution network for bringing autonomous technology to global scale. That's smart—they're not building the AVs themselves, they're partnering with manufacturers who can deliver them.

"When an Uber driver makes the switch to an EV, they can deliver up to four times the emissions benefits compared to a regular motorist, simply because they are on the road more," said Dara Khosrowshahi. He's right—gig economy drivers are high-mileage users, so electrifying this fleet has outsized environmental impact. Many riders also get their first EV experience through Uber, which normalizes electric vehicles for millions of people.

BYD's got impressive tech. Their battery performance is legitimately world-class, and their pricing undercuts most competitors. They've been eating Tesla's lunch in China and expanding aggressively in Europe and Latin America. This partnership gives them instant access to Uber's driver base across dozens of countries.

The problem? BYD can't touch the US market thanks to political headwinds. Trump-era tariffs and the broader US-China tech tensions mean BYD's locked out of what would be one of their most valuable markets. Even if those barriers dropped tomorrow, the political appetite for Chinese EVs in America is basically zero right now.

This drives me nuts. US Uber drivers would benefit from the same affordable EVs and lower operating costs that drivers in Europe, Latin America, and Australia are getting. We're missing out on superior battery technology and better pricing because of political theater. The efficiency gains are real—BYD's battery performance is legitimately world-class, their vehicles are built for high-mileage use, and their pricing undercuts everyone.

American drivers are stuck paying more for EVs that cost more to operate, which slows adoption, which keeps emissions higher, which delays the inevitable transition to electric fleets. Meanwhile, drivers in Mexico City and Madrid are getting cheaper, better vehicles. That's not a win for American competitiveness—it's self-inflicted inefficiency.

So while this partnership is huge for global EV adoption and the gig economy, American drivers are stuck waiting for domestic or non-Chinese manufacturers to deliver similarly affordable options. Uber's previous partnership with Hertz to offer Tesla rentals was a step in the right direction, but Tesla's pricing isn't as competitive as BYD's would be—and never will be, because Tesla's focused on premium segments and margins, not affordability.

The autonomous vehicle collaboration is the long-term play. BYD builds the hardware, Uber provides the platform and global distribution. If they execute this well, they could leapfrog traditional automakers in deploying consumer-facing AVs at scale. Uber's building a diverse AV strategy: Waymo partnership for current operations, Lucid-Nuro partnership for 20,000 premium robotaxis, and BYD for autonomous-capable vehicles globally. That's hedging across multiple manufacturers and technology providers.

Watch for this: BYD becomes the dominant EV supplier for ride-hailing globally by 2027 outside the US. Their combination of affordability, battery performance, and manufacturing scale makes them unbeatable for high-utilization fleets. Uber drivers in Europe and Latin America switch to BYD EVs en masse because the economics are undeniable. This accelerates the gig economy's transition to sustainable transportation while making it economically viable for drivers. Lower costs, better vehicles, cleaner emissions—everyone wins.

Except American drivers, who watch from the sidelines while political barriers keep them from accessing the same efficiency gains. And except the legacy automakers who didn't move fast enough and are now watching BYD eat their lunch in every market they can access.

The future of ride-hailing is electric. The question is whether American policy will let US drivers participate in that future competitively, or force them to use more expensive, less efficient vehicles for political reasons that have nothing to do with technology or economics.

Source: Uber Investor Relations