Uber is warning it may fall short of its electric vehicle (EV) targets due to upcoming changes to London’s Congestion Charge rules.
The ride-hailing company relies on more than 45,000 private hire drivers in the capital, many of whom are regular users of the Uber app.
To encourage EV adoption, Uber introduced the "PowerUp Package," offering drivers potential savings of up to £28,750. This includes discounts on select EVs, charging credits, and a £3,500 lump sum.
Despite these incentives, Uber is now raising concerns that it won’t meet its goal of transitioning all London drivers to EVs by the end of 2024. The company set this target in 2018, and while EV usage has grown—accounting for 40% of total Uber miles driven in the capital—full adoption remains out of reach.
The challenge is set to intensify with a rule change taking effect on December 25, 2025. From this date, EVs will no longer be exempt from the Congestion Charge, meaning drivers will have to pay £15 per day to operate in central London. For a full-time Uber driver, this could add more than £5,000 to annual costs.
An Uber spokesperson told The Telegraph: “The exemption for EVs from the Congestion Charge has been instrumental in making EVs attractive for drivers.”
Since Uber drivers own their vehicles rather than the company itself, they will bear the financial burden of the new charges. Transport for London (TfL) has clarified that EVs have benefited from the Cleaner Vehicle Discount, but this will end on Christmas Day 2025 to "maintain the effectiveness of the Congestion Charge."
As of June 2024, over 112,000 battery-electric and hydrogen fuel cell vehicles were registered with the discount scheme, up from 20,000 in 2019.
London Mayor Sadiq Khan has defended the policy, stating that the goal of the Congestion Charge is to reduce traffic. He noted that even his predecessor, Boris Johnson, opposed indefinite exemptions.
Uber is calling for discussions on potential solutions to maintain progress in EV adoption. “London is a global leader in electric vehicle adoption thanks to bold policies from the Mayor of London,” the spokesperson said. “We remain committed to our goals but know we cannot achieve them alone. The exemption for EVs has been key in making them viable for drivers, and we want to work constructively to keep London on track towards full electrification.”
