British electric van and bus maker Arrival will develop an electric car for Uber Technologies Inc that will go into production in late 2023, the two companies said on Tuesday.
Arrival and Uber will also explore a strategic relationship in key markets, including the United Kingdom, European Union and United States.
Uber plans to be a fully electric mobility platform in London by 2025, and across North America and Europe by 2030. The company has raised more than 135 million pounds ($188 million) to help its drivers in London upgrade to an electric vehicle by 2025.
Uber aims to sign up an additional 20,000 drivers in Britain as the lifting of COVID-19 restrictions boosts demand, the ride-hailing app said last week.
In March, Uber gave its existing 70,000 UK drivers workers’ rights, including the minimum wage, after it lost a Supreme Court case.
The Arrival Car will need to withstand the high demands of an Uber driver – ride-hailing cars drive up to 50,000 kilometers (31,070 miles) annually, versus 12,000 km for the average car.
The companies said the Arrival Car will prioritize “driver comfort, safety and convenience, while ensuring the passengers enjoy a premium experience.”
Arrival went public in March via a merger with a special purpose acquisition company (SPAC). The startup has so far specialized in electric vans and buses, and its biggest public order is for up to 10,000 vans for United Parcel Service Inc, which also owns a stake in Arrival.