"California Just Passed a New Environmental Mandate That Could Ruin Uber?
California’s war on the gig economy continues.
After past labor regulations nearly prompted Uber to entirely abandon the state until they were essentially undone by voters,
Golden State regulators have a new plan to attack ride-sharing services—this time in the name of environmentalism.
The California Air Resources Board just unanimously voted to mandate that Uber and Lyft rides must almost entirely switch to electric vehicles.
“California's clean air regulator on Thursday adopted rules to mandate that nearly all trips on Uber and Lyft ride-hailing platforms have to be in electric vehicles over the next few years, the first such regulation by a U.S. state,” Fox Business reports.
“The rules ... mandate that EVs account for 90% of ride-hailing vehicle miles traveled by 2030.”
... This is a drastic switch.
Right now, only a tiny fraction of cars on the road are powered by electricity.
And electric vehicles, despite enormous government subsidies, continue to be significantly more expensive than the typical vehicle.
Yes, these regulators may have noble intentions and earnestly hope to help the environment.
But using government force to arbitrarily speed up the ride-sharing industry’s transition to electric cars (which they are already planning on doing) will hurt drivers and riders alike.
Forcing those who seek the flexible work provided by ride-sharing apps like Uber and Lyft to buy expensive new electric vehicles will lock most working and lower-middle-class folks out of the market.
This could lead to a driver shortage by shrinking the pool, and many of those who can afford electric vehicles are likely already entrenched in advanced professions that pay more than driving.
Regardless, the initial genius of Uber was connecting idle car owners with those who need transportation.
When you ban most existing cars from being used, you undercut the very system that made ride-sharing such a significant societal and economic advancement.
... it’s almost impossible to see a scenario where this doesn’t lead to much higher prices for consumers.
Uber already does not make a profit, so arbitrarily increased costs of doing business will have to come from somewhere—and the most likely source is customers’ wallets.
We can already presumptively add this latest expansion of California’s nanny state to the long list of well-intended regulations that ended up leaving us all worse off."
"California to Require Uber, Lyft Drivers to Transition to Electric Vehicles in Latest Climate Change Mandate"
"Electric vehicles are so desired that they have to be mandated.
California will require ridesharing companies Uber and Lyft to transition to electric vehicles by 2030 in the state’s latest climate change mandate.
90% of ride sharing miles must take place in electric vehicles according to California’s new rule.
Who is going to pay for this?
The officials won’t say, but we know the burden will fall on the driver/taxpayer.
Uber and Lyft drivers are low-income earners and won’t be able to afford an electric vehicle.
Electric vehicles (also) take HOURS to fully charge the battery.
MarketWatch reported:
The California Air Resources Board on Thursday approved the new rules ...
The next step is for the California Public Utilities Commission to finalize how the rules will be implemented.
Despite their approval of the measure, the board members said Thursday they are extremely concerned about low-income drivers having to bear the majority of the costs
and expressed the need to continue to collect information on how this will affect them.
Uber and Lyft consider their drivers independent contractors, and the drivers own or rent their vehicles.
The companies, which are unprofitable but valued at billions of dollars, want the state to share the costs by providing incentives.
The bill, as estimated by the Union of Concerned Scientists, could total $1.73 billion, which it also forecast could cost the companies 4 cents a mile.
Electric vehicles are expensive ...
One in five electric vehicle owners in California switched back to gas-powered because of the inconvenience of charging.
It only takes a few minutes to fill up a gas tank, yet some electric vehicles need several hours of charging to drive 35 miles.
Charging electric vehicles is a total “hassle” say 20% of EV owners surveyed between 2012 and 2018 so they’re going back to gas, researchers found."