American ridesharing giant Uber is eyeing Japan’s used electric vehicle market for its planned pilot program in Australia as it seeks to cut costs and carbon footprint.
Uber to deploy second-hand Nissan Leaf EVs to Australia
Uber announced plans to launch a pilot program in Australia on Tuesday, using second-hand electric vehicles from Japan. According to The Driven, Uber teamed up with Queensland-based Car Empire to secure discounted access to used EVs.
The Nissan Leaf will reportedly cost approximately $22,000. Uber plans to offer these used EVs for delivery and rideshare drivers on its platform in Australia.
The announcement occurred just less than a week after the Clean Energy Finance Corporation committed another $20 million in car finance firm Splend to back EV rideshare loans to another 500 rideshare drivers in Australia. In addition, MG cut the ZS EV’s price below $35,000, making it the country’s cheapest EV.
Coverage
Uber’s pilot program, involving 2017-2019 Nissan Leaf EVs, will be available to drivers in Brisbane and on the Gold Coast.
These Japanese EVs will come with 3-year warranties and roadside assistance. Interested drivers can acquire them on a five-year loan term for only $124 per week.
Car Empire director David Cosgrove disclosed that they currently have 20 units ready, with the capacity to import up to 200 EVs from Japan per week. However, the company will depend on the demand.
“Not everybody wants a $50,000 or $60,000 new EV – the cost of living is up. There is a gap in the market for second-hand (electric) cars which Australia can’t really fill because the pool of second-hand vehicles is very small.”
Car Empire director David Cosgrove
Interestingly, Uber Australia and New Zealand Managing Director Emma Foley announced plans to expand the pilot program into other states to reach the company’s 2040 net-zero goal if the initial trial yields positive results.
“We’d love to take this to the rest of Australia. “This early trial in Brisbane will test how things go, but we would love to scale this more broadly if we get good feedback from drivers.”
Uber Australia and New Zealand Managing Director Emma Foley
Primary objectives
Uber’s strategy to use second-hand electric vehicles will play a crucial role in accelerating the shift to clean energy vehicles in Australia, thus reducing emissions from the transportation sector.
Uber Australia and New Zealand Managing Director Emma Foley highlighted that EVs’ high initial cost remains a hindrance despite initiatives to aid professional drivers in adopting EVs.
Therefore, offering used electric vehicles in Australia could alleviate such concerns. The program can encourage budget-conscious drivers to adopt the lower-cost used Nissan Leaf EVs, potentially boosting EV adoption in the country.
“New electric vehicle purchase numbers are coming up – in 2023, 8.5 per cent of new vehicles in Australia were EVs – but the second-hand market is still less than one per cent. We hope that, long-term, this becomes a catalyst for the wider market because rideshare drivers might have these cars for a few years and on-sell them.”
Uber Australia and New Zealand Managing Director Emma Foley
Uber’s pilot program leveraging used Nissan Leaf EVs marks a significant step towards making electric vehicles more accessible and affordable for Australian drivers. With this initiative, Uber seeks to reduce costs and carbon emissions associated with its rideshare and delivery services. This pilot program’s success could accelerate wider EV uptake in the country by expanding the used car market and demonstrating the viability of EVs for professional drivers.
