Uber will launch a new electric vehicle (EV) subsidy programme in New Zealand that could see up to $10,000 back in the pockets of its drivers, the global ride-hailing company announced today.

From July 1, drivers with fully-electric vehicles will be eligible for a 50 per cent service fee discount of up to $5,000 per year over two years.

The move is part of a $7.5 million investment designed to accelerate New Zealand’s EV transition and help drivers with the cost of going electric.

The programme will be available to drivers in all New Zealand cities where Uber operates and is only available for the first 750 eligible drivers, the company said.

Uber New Zealand will also introduce Uber Green, from May, which will allow riders to request a hybrid or all-electric ride for the same price as UberX.

Dom Taylor, managing director at Uber ANZ, acknowledged that the upfront price of EVs was often one of the greatest barriers to making the switch from petrol vehicles.

“Between the Government’s EV uptake programmes and our new multi-year incentive for drivers, we’re hoping to see a steady stream of EVs come onto the Uber platform in the years ahead,” Taylor said.

“While these steps are incremental, we believe they are the right thing to do for drivers, consumers, and cities.

 “We want to support the transition to EVs and want them to be a practical and economic choice for driver partners.”

The Government’s clean car rebate, launched last year, takes as much as $8625 off the price of a new “clean” vehicle.

Service fees paid to Uber are the difference between what a rider pays and what a driver earns on a trip (excluding tips, tolls, and certain fees, taxes, and surcharges).

For eligible EV drivers in New Zealand, these will be cut from 28 per cent to 14 per cent.

Uber says it uses the service fee to better serve everyone who uses the platform, including customer promotions, marketing, and covering tech improvements to make the app better.

Taylor said meaningful collaboration was needed between governments and industry to unlock the economic and environmental benefits of electric ridesharing.

“New Zealand is at the forefront of greener rides for Uber globally, with the vast majority of rides already happening in a hybrid vehicle,” Taylor said.