Uber (NYSE:UBER) and BYD announced on Wednesday a new initiative offering special pricing and financing options for the Chinese automaker's electric vehicles (EVs) to drivers on the ride-hailing app, starting in Europe and Latin America.
In addition, the two firms plan to collaborate on the development of "autonomous-capable vehicles" for Uber’s platform, as per their statement.
This multi-year strategic partnership could see 100,000 BYD cars added to Uber’s fleet, the press release states. The announcement comes even as the European Union, following the U.S., has increased tariffs on Chinese-made electric vehicles this year.
"As the largest global agreement of its kind, we're thrilled about the benefits this partnership will deliver for drivers, riders, and cities," said Uber CEO Dara Khosrowshahi.
UBER shares rose more than 2% in premarket trading Wednesday.
BYD, based in Shenzhen, has become a major force in China's electric vehicle market, outpacing Tesla (NASDAQ:TSLA) in vehicle production for two consecutive years. The company has also been expanding internationally, including setting up factories overseas.
"Uber and BYD share a commitment to innovate towards a cleaner, greener world, and I am excited to work together towards that future," stated BYD chairman and president Chuanfu Wang in the joint release.
The partnership aims to further extend its reach to the Middle East, Canada, Australia, and New Zealand, the press release noted.
“We are elated to join forces with a global leader like Uber to not only accelerate the transition to electric vehicles but also to make green transportation accessible and affordable for everyone,” said Stella Li, Executive Vice President of BYD and CEO of BYD Americas.
“This collaboration marks a new era in the electrification of urban mobility, and we look forward to seeing our cutting-edge EVs become a common sight on the streets of cities worldwide.”