Ford F has teamed up with Uber Technologies UBER to introduce a groundbreaking lease program called Ford Drive, which offers flexible access to Ford Mustang Mach-E models for rideshare drivers. This collaboration between an automaker and a rideshare network is a significant step toward achieving both companies' electrification and emissions goals. The pilot program has been launched in select U.S. markets, including San Diego, San Francisco, and Los Angeles, and aims to promote the adoption of electric vehicles (EVs) among rideshare drivers.
Flexible Leasing for Electric Rideshare
Ford Drive's flexible lease program caters to rideshare drivers by providing customized time periods for vehicle leasing. Depending on the location, drivers can choose a lease duration ranging from one to four months. The vehicles are delivered to drivers within two weeks, and they can manage payments and service through the Ford Drive app. Ford Drive collaborates with local dealerships in each city to purchase a fleet of Mustang Mach-Es, ensuring seamless service and maintenance.
Expanding the Successful Pilot
The Ford Drive pilot program was initially launched in 2022, allowing San Diego drivers on the Uber platform to lease more than 150 Mustang Mach-Es. Building on the success of the initial phase, the program has been expanded to include drivers in San Francisco and Los Angeles. California, Uber's leading North American market for electric vehicle adoption, has already seen roughly 10% of all on-trip miles completed in full EVs as of late 2022.
Shared Electrification Goals
Ford Drive is an initiative of Ford Next, which focuses on incubating and launching new businesses to complement Ford's product offerings and create innovative customer experiences. The collaboration with Uber demonstrates a shared commitment to electrification and reducing emissions. By gathering valuable feedback from drivers participating in the pilot, Ford and Uber can continue to refine their solutions and support the electrification goals of both companies.
Addressing Climate Change and Incentivizing Electric Adoption
Christopher Hook, Uber's global head of Sustainability, highlighted the urgency of addressing climate change and emphasized the importance of collaboration. As part of their efforts to become a zero-emissions platform in North America and Europe by 2030, Uber has allocated $800 million in incentives and resources to assist drivers in transitioning to EVs. Uber drivers using fully electric vehicles are eligible for the Zero Emissions incentive, earning an extra $1 on every Uber Rides trip, with potential earnings of up to $4,000 per calendar year.
Environmental Benefits and Rider Comfort
Uber's SPARK! report reveals that when high-mileage drivers switch to EVs, communities benefit from up to four times emissions reduction compared to conventional car owners. This incentive aligns with Uber's goal of reducing carbon emissions and creating cleaner, more sustainable communities. Additionally, the Mustang Mach-E offers ample trunk space and comfortable seating for riders, making it an ideal choice for urban trips or airport transfers. Drivers using the Mustang Mach-E also gain access to the growing BlueOval Charge Network, comprising over 85,000 charging plugs across North America.
Ford's Commitment to Electrification
Ford's dedication to electric vehicles is demonstrated through its $50 billion investment in EV production through 2026. Under the Ford+ plan, the company aims to achieve a global EV production run rate of 600,000 by the end of this year and 2 million by the end of 2026. The collaboration with Uber and the introduction of Ford Drive align with Ford's vision for a more sustainable future.
Zacks Rank & Another Key Pick
Ford currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ford’s crosstown rival General Motors GM is also a #1 Ranked stock. General Motors’ compelling portfolio with strong demand for quality full-size pickups and SUVs bodes well. The company’s hot-selling brands in America, like Chevrolet Silverado, Equinox and GMC Sierra, are driving the top line. Encouragingly, this legacy U.S. automaker will have nine electric vehicle (EV) models in the North America market this year, which will buoy top-line growth.
The Zacks Consensus Estimate for 2023 and 2024 implies year-over-year growth of 4.5% and 1.3%, respectively. The consensus mark for 2023 and 2024 EPS has moved north by 14 cents and 22 cents, respectively, over the past 30 days.
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