Arrival (ARVL) and Uber (UBER) has entered into a partnership to develop an electric ride-hailing vehicle. The vehicle will come in late 2023 and will not be exclusive to Uber.
The goal of this partnership is for Arrival to create a sufficient vehicle to appeal for on demand ride hailing drivers around the world.
In a ride-hailing environment, electric cars will make a lot of sense. They have less moving parts than internal combustion vehicles, requiring less servicing and upkeep. They’re also designed to comply with zero-emission zones, which have been implemented in cities throughout Europe, as well as larger internal combustion bans on the horizon. Electric vehicles, on the other hand, are currently more costly than the most affordable internal combustion or hybrid vehicles.
Arrival has yet to demonstrate the strategy’s viability. It is still in the planning stages, like all of its SPAC counterparts, and has yet to sell any commercial vehicles. Uber has quietly pursued a host of electric car startups in recent years but has yet to strike a contract, including the fact that it has recently cleaved a number of money-losing units, including one devoted to autonomous vehicles and another to flying taxis.
The car will be based on the same ideas as Arrival’s battery electric buses and vans, and will use robot-heavy “micro plants” near key markets to undercut conventional carmakers that rely on highly efficient yet costly assembly lines.
