Uber to raise London fares to encourage drivers to buy electric cars

Taxi firm expects clean air charge to raise £200m for zero-emissions vehicles

Uber says the new fee will be around 45p for an average, three-mile trip

Uber is raising its fares in London by 15p per mile next year to help drivers buy electric cars.

The taxi firm expects the new clean air charge to raise more than £200m which will be used to help pay for an estimated 20,000 Uber drivers to switch to fully electric vehicles by 2021, increasing to every car in 2025.

Uber says the new fee will be around 45p for an average, three-mile trip, in addition to the normal fare with all of the extra money going towards greener vehicles.

Drivers working around 40 hours per week can expect to receive around £4,500 for an electric car over three years.

Chief executive Dara Khosrowshahi claimed that the plan is “the first of its kind for Uber around the world”.

It comes as Uber attempts to strengthen its relationship with London Mayor Sadiq Khan who earlier this year set out a vision for a zero-emission zone in London.

Mr Khosrowshahi said Uber’s partnership in London would be “trailblazing in solving air pollution, which every great city in the world is struggling with, and our mayor here in London is looking to improve”.

He went on: “The Mayor of London has set out a bold vision to tackle air pollution in the capital and we're determined to do everything we can to back it.

“Our £200m clean air plan is a long-term investment in the future of London aimed at going all electric in the capital in 2025.

“Over time, it's our goal to help people replace their car with their phone by offering a range of mobility options - whether cars, bikes, scooters or public transport - all in the Uber app.”

An Ultra-Low Emission Zone implementing stricter controls on diesel vehicles is due to be implemented in London from April 2019.

Uber's announcement comes after the firm secured a short-term operating licence for London and was put on probation in June.

Transport for London had initially refused to renew Uber's licence in September last year, ruling that the company was “fit and proper” to operate a taxi service in London.

The capital's transport operator cited a number of reasons for the decision, including the way that Uber reported crimes.

Uber conceded that the company had made "serious mistakes" but said that it had since made wholesale reforms.

James Farrar, private hire drivers branch chair at the IWGB union said he was "very concerned" that the move could lure drivers further into debt.

"The answer to London's growing congestion and pollution problem is for the government and the mayor to resolutely commit to capping minicab numbers in London.

"Drivers have long ago given up on Uber to do the right thing and that is why so many will be joining our march next week with other precarious workers, as we get ready to face down yet another appeal from Uber on the worker rights case we already won on two occasions.”