Lyft (LYFT) to Transform to 100% Electric Vehicles by 2030

Lyft, Inc. LYFT plans to switch to electric vehicles entirely by 2030, i.e., every single vehicle on its platform would be electric in a decade’s time.
 
Through this move, the company aims to reduce greenhouse gas emissions, a large contributor to which is the ride-hailing services that Lyft and Uber Technologies UBER provide. Ride-hailing services are believed to generate approximately 50% more carbon emissions than private car trips. Consequently, the two companies have been asked to switch to more electric vehicles.

Both Lyft and Uber carry a Zacks Rank #3 (Hold).

In a blog post, the company revealed that to reach its goal of 100% electric vehicles, it has tied up with the Environmental Defense Fund. The initiative includes Lyft’s cars in Express Drive rental-car program for drivers, consumer rental and autonomous vehicle programs, as well as drivers’ personal cars used on its platform.

The company feels that the transition would be highly beneficial to its drivers. Although upfront costs of electric vehicles are currently greater than gas-powered cars, electric vehicles mean reduced costs for drivers in the long run, since they have lower fuel and maintenance expenses. Lyft drivers operating electric vehicles currently save an average of $50-$70 per week only on fuel costs. With the company expecting electric vehicle battery costs to reduce over time, these savings are expected to go up.

A flipside to this long-term environmental protection initiative is that “net emissions from cars used on the Lyft platform may increase in the short term” as the company will terminate its existing carbon offsets program in order to focus on its long-term goal of zero emissions.

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