Electric Vehicles And The Future Of Transport Network Companies

The transportation industry is on the cusp of a transformational change with the advent of electric vehicles. With climate change, smart cities, and governmental regulations at the forefront, electric vehicles are the future of the automotive industry. This transformation is also seen in the transportation network companies which have disrupted the industry with innovative technology.

The Evolution of Transportation Network Companies

The revolution sprouted when transportation network companies introduced innovative mobile application technology to connect passengers to their nearby registered drivers. These companies pioneered a new form of transportation that revolutionized the industry which was dominated by taxis. The inception of these companies initiated a technological shift, which laid the foundation for autonomous vehicles and electric transport.

The Rise of Electric Transport

The transportation industry, and more specifically, the transportation network companies are now starting to promote electric vehicles. The industry’s growing awareness of its environmental impact has brought a shift towards electrification. The ultimate aim of electric transport is to eliminate vehicular emissions and provide cleaner transportation. Electric vehicles are gaining popularity due to the benefits they offer as compared to conventional combustion engines. Some of the prime benefits include zero emissions, reduced noise, a high degree of efficiency, and lower total cost of ownership.

Transport Network Companies: Going Green

Transport network companies such as Uber and Lyft are embracing the change towards electric transportation. In 2017, both companies announced their commitment to a target of 100% electric or hybrid vehicles over time. Uber has set its primary focus on going fully electric by 2030, whereas Lyft has defined a timeline of having 100% electric vehicles in its fleet by 2030.

By transitioning to electric vehicles, transportation network companies are not only making a positive step towards the environment but are also setting precedent for the wider automotive industry. Both Uber and Lyft have launched programs to motivate drivers to switch to electric cars. They have created initiatives like free charging and other incentives to help convert to electric cars. As more companies start to make the switch, gradually, the public is starting to become more comfortable with the idea of owning and driving electric vehicles.

Advantages of Electric Transport For Transportation Network Companies

As transportation network companies shift to electric vehicles entirely, they are likely to face severe hurdles regarding costs and charging infrastructure. However, despite the hurdles, the overall advantages of transitioning to electric vehicles outweigh the drawbacks. These advantages include:

  • Lower Total Cost of Ownership
    Electric vehicles come with lower fuel expenses compared to traditional combustion engines. With fewer parts, maintenance costs are lower, and there are fewer breakdowns.

  • Improved Public Perception
    Since the inception of transportation network companies, there has been a certain level of unease among the public with regard to the safety and environmental role of such services. Touring around with EVs that have zero emissions will elevate ride-hailing vehicles to the transportation standard of the modern-day.

  • Environmental Protection
    Electric vehicles do not emit harmful pollutants that are typically associated with the burning of fossil fuels.

  • Tax Benefits
    Federal and State Governments are increasingly looking to incentivize electric vehicle adoption by providing tax rebates, credits, and exemptions for purchases of EVs.

Challenges

Although electric vehicles are paving the way for a transportation revolution, there are still some challenges that transportation network companies need to consider carefully.

  • Limited Range
    Electric vehicles have a limited range compared to their gasoline counterparts. This could lead to longer waiting times for charging or for exchanging depleted batteries.

  • Charging Infrastructure
    Creating a charging infrastructure will require significant investment, and there is still a lack of charging stations in some areas.

  • Cost of Electric Vehicles
    The upfront cost of purchasing an electric vehicle is still high, although the cost is gradually decreasing.

Final Thoughts

Electric vehicles will undoubtedly be the future of the automotive industry. The benefits that transitioning to electric vehicles can bring to transportation network companies are significant, including the potential for significant cost savings and improved public perception. The shift towards electric vehicles may not be a smooth road, but it is a necessary step to reduce the carbon footprint of the transportation industry and create a more sustainable future. The transition towards electric vehicles is set to continue to decrease costs and increase accessibility. With regulations in place to control emissions, the future of transportation network companies and the environment looks promising.

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