Uber is looking to get in line with London's forthcoming transport rules regarding the use of zero emissions vehicles for private hire car service in the city. London has set an aggressive target of requiring that all new London private hire vehicles be zero emission cars by 2020, and the city hopes to be entirely emission-free by 2050.
Uber has plans to electrify its entire London vehicle fleet by 2025, and to make sure that all cars on its uberX offering are either fully electric or hybrid vehicles by 2019. That's an ambitious goal, especially given that Uber can't just replace its own fleet of cars – since it doesn't own one. Instead, it has to incentivize the switch for drivers.
Partly, the incentive will be actually being able to operate in London once the new rules go through. But Uber is also announcing a new funding arrangement for anyone looking to upgrade to a hybrid or electric vehicle, which could range up to as much as £5,000 ($6,604 US) depending on conditions met. Uber's also handing out up to £1,5000 ($1,981 US) in Uber credit for London residents who ditch their old diesel car.
All told, Uber is committing as much as £150 million (nearly $200 million US) on its fund over time – but it's not solely generating the funds from existing sources: It's adding a £0.35 ($0.45 US) fee on the rider to rides in the city to help pay for the transition. Teamwork makes the dream work.