British electric van and bus maker Arrival will work with US-based Uber Technologies to produce an electric car that will go into production in late 2023.
In addition, Arrival and Uber will consider forming a strategic partnership in key markets such as the UK, the European Union, and the US.
According to the companies, the “Arrival Car” will be an “affordable, purpose-built electric vehicle for ride-hailing” that will go into production in the fourth quarter of 2023.
By 2025, Uber plans to be a fully electric mobility platform in London, and by 2030, it wants to be in North America and Europe.
The company has raised over $188 million to assist its London drivers in making the switch to electric vehicles by 2025.
Mr. Jamie Heywood, Uber regional manager for northern and eastern Europe remarked that “our focus is now on encouraging drivers to use this money to help them upgrade to an electric vehicle, and our partnership with Arrival will help us achieve this goal.”
The ride-hailing app said that due to the removal of COVID-19 limits, Uber plans to hire an additional 20,000 drivers in the UK.
The Arrival Car would have to endure the high demands of an Uber driver, as ride-hailing cars travel up to 50,000 kilometers (31,070 miles) each year, compared to 12,000 kilometers for the average car.
The companies stated that the Arrival Car will prioritize “driver comfort, safety, and convenience while ensuring the passengers enjoy a premium experience.”
In March, Arrival went public after merging with a special purpose acquisition company (SPAC). The company has so far focused on electric vans and buses, with its largest public order for up to 10,000 vans for United Parcel Service Inc (UPS), which also owns a stake in the firm.
Arrival Senior Vice President Mr. Tom Elvidge, formerly a manager at Uber stated that “we have a great partnership with UPS and we hope to replicate that success with Uber as we develop the best possible product for ride-hailing.”
The Arrival Car will use the “Small Vehicle Platform” the startup referenced in its investor presentation before going public.
Arrival said that the car would be “affordable,” but didn’t say how much it would cost.