Uber offers US drivers $4,000 to switch to electric vehicles as federal tax credits expire
Uber Technologies announced on Wednesday a $4,000 grant program for drivers who purchase electric vehicles, launching the initiative as the ride-hailing company seeks to accelerate its transition to zero-emission transportation following the expiration of federal EV tax incentives.
The new “Go Electric” grants will provide eligible drivers in California, New York, Colorado, and Massachusetts with $4,000 toward the purchase of new or used electric vehicles. The announcement comes less than a month after the Trump administration’s tax legislation eliminated federal EV tax credits on September 30, which had previously offered up to $7,500 for new electric vehicles and $4,000 for used models.
Rebranding green transportation
Alongside the financial incentive, Uber is rebranding its “Uber Green” service as “Uber Electric” across its global platform. The company transitioned the service to exclusively electric vehicles earlier this year, moving away from its previous model that included hybrid vehicles.
“Uber Electric is not just a name change; it signifies the tangible advancements we’ve made in electrifying our platform globally over the last five years,” Pradeep Parameswaran, Uber’s global mobility chief, stated.
The rebrand aims to make it easier for riders to choose zero-emission transportation options. To celebrate the transition, Uber is offering riders a 20% discount on their next electric trip.
Combining state and federal incentives
The $4,000 grants are designed to help offset the loss of federal tax incentives and can be combined with state-level EV programs. In states like California and Colorado, which offer substantial state incentives, the combined savings could significantly reduce the cost barrier for drivers considering electric vehicles.
“Affordability is an issue with EVs and we want to make it as easy as possible for drivers to transition,” Santosh Rao, Uber’s global head of mobility sustainability, told reporters.
In addition to the targeted state grants, Uber is offering all US drivers a $1,000 discount on new or used EVs through the car-shopping platform TrueCar.
Platform electrification progress
Uber currently has more than 200,000 electric vehicles operating on its platform worldwide. In the United States, Canada, and Europe, drivers are adopting electric vehicles at a rate up to five times faster than other motorists, according to the company.
One in four Uber riders reported that their first experience with an electric vehicle came through the ride-hailing service. In the US, Europe, and Canada, one in 10 Uber miles is currently driven in an electric vehicle.
The company is also expanding its battery-aware matching feature to 25 countries. The technology aims to reduce “range anxiety” among drivers by intelligently routing trips based on vehicle charge levels and nearby charging infrastructure.
Industry context and climate goals
The initiative represents a scaled approach compared to Uber’s 2020 commitment to spend $800 million globally by 2025 to help drivers transition to electric vehicles. The company maintains its goal of achieving zero-emission rides by 2040.
The timing of the announcement reflects broader uncertainty in the electric vehicle market following the end of federal incentives. Automotive industry analysts have warned that the expiration of federal tax credits could lead to a significant decline in EV sales in the fourth quarter.
However, state-level programs continue to offer financial support for electric vehicle adoption, with incentive structures varying widely across the country. The patchwork of state incentives may create regional differences in EV adoption rates as the market adjusts to the absence of federal support.