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Widespread range suitability and cost competitiveness of electric vehicles for ride-hailing drivers

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  • Taiebat, Morteza
  • Stolper, Samuel
  • Xu, Ming

Abstract

Transportation network companies provide an increasingly significant share of mobility, which has prompted interest in curbing greenhouse gas emissions in the ride-hailing sector. Vehicle electrification offers the possibility of vast emissions reductions, but a number of factors are thought to constrain this transition. We investigate two such factors – battery electric vehicle (BEV) range and total cost of ownership – from 2019 driving data covering all U.S. drivers on the Lyft platform. We estimate that, for more than 86% of drivers, their daily travel needs can be met by a fully charged BEV with listed range of 250 miles (BEV250) on at least 95% of days. New and pre-owned BEVs both appear to be cost-saving for many drivers. We estimate that a $5,700 BEV purchase subsidy would make new BEVs cost-competitive to gas-powered vehicles for all drivers on the Lyft platform, holding annual mileage and vehicle prices constant. Our results suggest that range and lifetime cost should not be significant barriers to widespread EV take-up in the ride-hailing sector. More generally, they suggest that continued moderate subsidies for BEVs, information interventions, and targeting of such programs to ride-hailing drivers who stand to gain most from them will promote a faster transition in this sector. Driver-targeted outreach and information provision related to EV benefits, as well as expansion of charging availability and fast charging rates through local and federal policy, are additional valuable steps to encourage ride-hailing electrification.

Suggested Citation

  • Taiebat, Morteza & Stolper, Samuel & Xu, Ming, 2022. "Widespread range suitability and cost competitiveness of electric vehicles for ride-hailing drivers," Applied Energy, Elsevier, vol. 319(C).
    • Handle: RePEc:eee:appene:v:319:y:2022:i:c:s0306261922006055
    DOI: 10.1016/j.apenergy.2022.119246
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    References listed on IDEAS

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