On Tuesday, in a joint statement British electric van and bus maker Arrival stated, they will collaborate to develop an electric car for Uber Technologies Inc, which will go into production in late 2023.
Uber and Arrival will also explore a strategic partnership in key markets, including the United States, EU and the United Kingdom/
The “Arrival Car” will be an “affordable, purpose-built electric vehicle for ride-hailing,” and will go into production in the fourth quarter of 2023, said both companies.
Uber plans on being a fully electric mobility platform in London by 2025 and aims to achieve the same in North America and Europe by 2030. The company has raised more than $188 million (135 million pounds) to help its drivers in London upgrade to an electric vehicle by 2025.
“Our focus is now on encouraging drivers to use this money to help them upgrade to an electric vehicle, and our partnership with Arrival will help us achieve this goal,” said Jamie Heywood, Uber’s regional manager for northern and eastern Europe.
Uber is also aiming to sign up an additional 20,000 drivers in Britain following the lifting of COVID-19 restrictions which is likely to see a boost in demand, said the company.
Incidentally, earlier this year in March, Uber was forced to give its existing 70,000 UK drivers workers’ rights, including minimum wage, after it lost a Supreme Court case.
Both companies said, the Arrival Car will prioritize “driver comfort, safety and convenience, while ensuring the passengers enjoy a premium experience.”
Arrival went public in March via a merger with a special purpose acquisition company (SPAC).
The electric vehicle startup has, so far, specialized in electric buses and vans; it has also bagged its biggest public order for up to 10,000 vans for United Parcel Service Inc, which incidentally has a stake in the startup.
“We have a great partnership with UPS … and we hope to replicate that success with Uber as we develop the best possible product for ride hailing,” said Arrival’s Senior Vice President Tom Elvidge in a statement.
The Arrival Car will use the “Small Vehicle Platform” the startup referenced in its investor presentation prior to going public.
Saying its car would be “affordable” Arrival however did not disclose the pricing.