Uber partners with electric-vehicle startup Arrival so its drivers can design new car

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Uber
UBER,
+0.15%
has teamed up with electric-vehicle maker Arrival
ARVL,
-6.72%,
which is developing a new vehicle that will be designed with help from the ride-hailing app’s drivers.

U.K. technology company Arrival, which listed on Nasdaq
COMP,
-0.48%
in March merging with CIIG Merger Corp. through a special-purpose acquisition company, announced the deal on Tuesday.  

Read: Another EV Startup Is Going Public. Why This One Is Different.

It said: “The Arrival Car will be designed to be an affordable, purpose-built electric vehicle for ride-hailing, and will be designed in partnership with Uber drivers. Uber drivers will now be invited to join the design process and ensure the final vehicle meets their needs.”

The Arrival car is expected to enter production in the third quarter of 2023. Uber has committed to becoming a fully electric mobility platform across North America and Europe by 2030, in London by 2025.

The car designed with help from Uber drivers will join Arrival’s previously announced bus and van as it attempts to provide cities with zero-emission transport options in order for them to meet their sustainability goals over the coming years.

Read: With earnings on track for best growth in more than a decade, here come Uber, Lyft and the vaccine makers

Jamie Heywood, Uber’s regional general manager for Northern and Eastern Europe, said in a statement: “As our cities open up we have an opportunity to make sure that urban transport is cleaner than ever before.

“Our focus is now on encouraging drivers to…upgrade to an electric vehicle, and our partnership with Arrival will help us achieve this goal.”

Read: Uber and Lyft Dropped After Biden’s Labor Secretary Said Drivers Should Be Employees. Here’s Why.

A typical ride-hailing vehicle will on average drive 45-50,000 km a year, versus 12,000 km for a typical vehicle. Arrival is seeking help from Uber drivers to give priority to driver comfort, safety, and convenience.

Tom Elvidge, senior vice president of Arrival Mobility U.K., said: “Arrival will collaborate with Uber drivers in the design process over the coming months to ensure the Arrival Car reflects the needs of professional drivers and their passengers, with the final vehicle design expected to be revealed before the end of 2021.”

Arrival’s Microfactories will use decentralized production in cities around the world to produce vehicles close to where they are needed, using local workers.



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