Maintenance costs decrease and tips increase... net profit may increase about 3 times
[Asia Economy Reporter Kim Jung-wan] As gasoline prices soar, drivers for U.S. ride-hailing service companies are increasingly switching from traditional internal combustion engine vehicles to Tesla electric cars.
On the 28th (local time), Bloomberg News reported that according to the gig economy driver support application 'Gridwise,' the number of drivers who switched their vehicles used for ride-hailing and delivery services to Tesla electric cars in May surged by 186% compared to June of last year.
Bloomberg explained that the sharp rise in gasoline prices made renting or purchasing electric vehicles for business use more profitable. For Uber and Lyft drivers, whose real earnings have decreased due to rising oil prices, switching to electric vehicles was not just a way to save a few cents on costs but significantly helped their income. According to the American Automobile Association (AAA), gasoline prices in the U.S. surpassed $5 per gallon (3.78L) for the first time on the 10th and recently broke the $6 mark.
For example, Heidi Vance (34), an Uber driver in Lancaster, California, started renting a Tesla Model 3 from rental company Hertz instead of driving her usual Toyota Camry. As a result, her weekly vehicle maintenance cost dropped from $600 (about 780,000 KRW) to $450 (about 520,000 KRW). Moreover, tips from customers increased from $1?3 to $10?15.
Thanks to this, her net earnings during the 25-day Model 3 rental period reached $2,600 (about 3.11 million KRW), which was three times the $800?1,000 (about 1.04?1.3 million KRW) she earned driving the Camry. Bloomberg pointed out that this trend of drivers switching to Tesla emerged just as Uber and Lyft need to demonstrate progress toward their goal of converting all operating vehicles to electric cars in North America and Europe by 2030.
Currently, more than 15,000 Uber drivers have rented Tesla vehicles. Uber operates an incentive program that pays an additional $1 per ride to drivers who have switched to electric vehicles. Through this program, drivers can earn up to $4,000 more annually. Uber also formed a partnership with rental company Hertz last November and added a feature to its driver app last month that shows the locations of electric vehicle charging stations.
Lyft has also recently seen a significant increase in electric vehicle usage. According to a Lyft spokesperson, the use of electric vehicles by Lyft drivers increased by 27% compared to the first quarter. While most electric vehicles used by Lyft drivers are Teslas, the spokesperson noted that electric vehicles from other automakers such as Kia have also increased significantly.
However, Bloomberg pointed out that electric vehicles account for only 0.8% of vehicles used by ride-hailing service companies in the U.S., making it difficult for Uber and Lyft to achieve their goal of fully transitioning to electric vehicles by 2030. The report added that the ability of Uber and Lyft drivers to use Tesla vehicles, which were previously affordable mainly to the wealthy, was thanks to soaring gasoline prices and the recovery in demand for ride-hailing services. This demand needs to remain high for this 'calculation' to work effectively.
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