Uber Invests $20 Million in Mumbai’s Everest Fleet to Accelerate Electric Vehicle Transition
- ByStartupStory | June 14, 2023
Uber, the ride-hailing giant, has reportedly spearheaded a $20 million funding round in Mumbai’s Everest Fleet, according to sources familiar with the matter. This marks Uber’s initial investment in India and coincides with its foray into electric vehicle (EV) services, where it has collaborated with various fleet operators, including Everest. Notably, Everest is also a partner of Uber’s Indian competitor, Ola, which is backed by SoftBank.
“This funding round will accelerate our transition from being a CNG-dominated fleet to one with CNG and electric vehicles in the next five years. By 2026, we aim to have 10,000 electric vehicles as part of our overall fleet,” Siddharth Ladsariya, co-founder, Everest Fleet, said.
Everest, currently operating in seven Indian cities including Mumbai, Delhi, Bengaluru, Hyderabad, Chennai, Kolkata, and Pune, has expressed its intention to broaden its presence in additional major cities in India and expand into new global territories following the investment. Although Uber’s stake in Everest will be minority, this move signifies a departure from Uber’s previous approach of maintaining non-control over its fleet.
In February, Uber entered into an agreement with Tata Motors to introduce 25,000 electric vehicles (EVs) into its fleet. These EVs are being procured by Uber’s fleet partners, including Everest. Recently, Uber launched its Uber Green service in India, allowing users to request EVs for their rides. Initially, the service has been introduced in Delhi, Mumbai, and Bengaluru.
“Everest has grown its fleet at an impressive pace and has set new industry benchmarks in asset utilisation. With the addition of new cars, including electric vehicles, Uber will continue to deliver a great service experience to riders,” Prabhjeet Singh, president, Uber India and South Asia, said.
The funding round for Everest is particularly significant as the company aims to enhance its capacity to cater to Uber and similar clients. Meanwhile, for Uber, headquartered in San Francisco, the focus is on the potential growth of the electric vehicle (EV) segment within the ride-hailing industry.
Uber Green’s introduction puts the company in competition with players like BluSmart and Evera. It’s important to note that Uber’s transition towards electrifying its fleet is a gradual process, involving partnerships with fleet operators like Everest, while startups like BluSmart maintain control over their own drivers and fleets.
“The EV play for on-demand cabs is not as simple as petrol, diesel, CNG cars. There’s a lot more effort that goes into building the whole ecosystem for EVs from charging infrastructure, vehicle financing. For this, you want to have a certain level of control over your fleet, and that cannot happen with asset-light models, which Ola and Uber have,” a Delhi-based mobility investor told.
In addition to Everest, Uber has forged partnerships with fleet operators like Lithium Technologies and Moove to facilitate the deployment of electric vehicles (EVs). It has also expanded its collaboration with BP, an investor in BluSmart, to India through Jio-bp, and joined forces with GMR Green Energy to provide fast-charging infrastructure for Uber EVs.
Moreover, state governments are subtly encouraging ride-hailing companies to adopt EVs in their fleets. The Delhi government, for instance, has proposed draft rules for aggregators, stipulating that four-wheeler aggregators should convert 5% of their fleet to EVs within six months of the final notification and achieve 100% conversion within five years of the notification.
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