EV startup Arrival has announced a new partnership with Uber to design and develop a purpose-built EV specifically for ride-share drivers. Arrival plans to invite Uber’s drivers to participate in the design process to ensure this new “Arrival Car” meets their needs. The new partnership also looks to further a strategic relationship together in primary markets like the UK and the EU.
Since its founding in 2015, Arrival has chosen to face some of the biggest challenges in transportation and mobility head on. It currently employs over 1,300 individuals across eight different countries, including its two headquarters in London and Charlotte, North Carolina. Prior to Arrival Car with Uber, the automaker has unveiled two EVs in its production pipeline, the Arrival Van and the Arrival Bus.
Last month, Arrival announced its board had approved a SPAC merger with CIIG Merger Corp. ($CIICU) that has allowed it to go public on the Nasdaq as $ARVL. Arrival saw approximately $660 million in gross proceeds from the merger, of which it will use to ramp up its first EV deliveries and expand its novel “microfactories.”
With announcement with Uber, Arrival will now be bringing a third EV to market over the next couple years.
According to a press release from the automaker, the Arrival Car is expected to enter production in Q3 2023 as an affordable, purpose-built EV designed with and for Uber drivers. With over 30 million estimated ride-share drivers globally, the expedited shift toward electric vehicles can help drastically reduce carbon emissions and improve air quality. Tom Elvidge, SVP Arrival Mobility UK, stated: “We are confident that electrifying ride-hailing vehicles will have an outsized impact on cities, and we are keen to support drivers as they manage this transition. Arrival Car will be designed around drivers’ needs to create a vehicle that is affordable, durable, and desirable. We have had great success working alongside key partners to create our best-in-class delivery van, and we hope to replicate that success with Uber as we develop the best possible product for ride-hailing that elevates the experience of the passenger and improves drivers’ health, safety, and finances.”
Uber’s newly announced partnership with Arrival is one of several steps the company is taking toward zero emissions. Just recently, the company rolled out Uber Green in London, allowing riders to request an EV at no additional cost, while offering drivers a lower service fee.
The ride-share behemoth has already committed to becoming a fully electric mobility platform in London by 2025 and across North America and Europe by 2030. Furthermore, Uber plans to be fully electric worldwide by 2040. Jamie Heywood, Uber’s regional general manager for Northern and Eastern Europe, elaborates: “As our cities open up we have an opportunity to make sure that urban transport is cleaner than ever before. Uber is committed to helping every driver in London upgrade to an EV by 2025, and thanks to our Clean Air Plan, more than £135 million has been raised to support this ambition. 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.”
What’s interesting about this collaboration is that is that the Arrival Car is not currently exclusive to Uber. A spokesperson for Arrival said that both parties have entered into a Memorandum of Understanding to “explore a strategic relationship in key markets, including the UK, EU and US.”
However, Arrival said that if other ride-share companies feel the Arrival Car provides them with the requirements they need, the automaker would not stop them from purchasing this new EV.
