An Uber Technologies Inc.-backed (NYSE:UBER) South African EV fleet manager, Valternative, has said that the ongoing U.S.-Israel and Iran war has accelerated EV penetration in the region.
South African Drivers Will Not Go Back to ICE Vehicles
In a report by Bloomberg on Sunday, Valternative co-founder Mahomed Jeewa said that Uber had approached the company to bolster its presence in the South African market against Bolt, which is a South African ride-hailing company and is offering low-cost rides with Indian automaker Bajaj‘s Qute.
While Qute offers an alternative to traditional tuk-tuks but remains powered by fossil fuels, Valternative and Uber’s approach is an electric one and the Iran war is helping drive electrification in a country where infrastructure remains sparse, the report said.
Fuel costs in South Africa remain high as the conflict sends supply shocks throughout the world and Jeewa said that South African drivers or customers would not return to ICE vehicles once they “get a taste of electric,” the report outlined.
A report by My Broadband on Monday, citing industry data, said that 1,903 fully-electric vehicles were sold in South Africa during the first half of the year, outlining the lack of electric mobility in the country.
Fleet Expansion, Charging Woes
Valternative uses stripped-down versions of China’s Henrey Automobile Technology‘s Henrey EV4 as its vehicle, without features like a heater, to keep costs down, the report said.
The company is in the process of deploying 360 cars in Johannesburg and has planned to expand to other cities, the report said. “What Covid did for delivery in South Africa is what this conflict is doing for electrification,” Jeewa said in the report.
However, drivers of the fleet say that they need better infrastructure, with one driver in the report saying that charging takes up an hour of their time. Jeewa said that Valternative plans to add over six to seven charging stations in the coming months and ultimately hopes to expand to other countries like Morocco, Egypt, Ghana and more, the report said.
Waymo To End Uber Partnership?
The report comes as Alphabet Inc.‘s (NASDAQ:GOOGL) (NASDAQ:GOOG) Waymo is reportedly eyeing an exit from its partnership with Uber after the companies officially parted ways in Phoenix, Arizona, in May this year.
Meanwhile, Uber bolstered its presence in the food delivery sector as it officially reached an agreement to acquire German food delivery platform Delivery Hero SE in a deal worth $14.8 billion earlier. Uber CEO Dara Khosrowshahi said that the deal would let Uber “double the number of markets” it operates in.
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