Major US Ride-Sharing Company, Lyft, Commits to 100% Electric Vehicles by 2030

Lyft. Inc. has made an ambitious pledge of having 100 percent electric vehicles on its platform by 2030. Although the commitment is quite a stretch, Lyft estimates that this goal will significantly reduce greenhouse gas emissions of up to 16 million metric tons.

The announcement is part of the company's pledge to The Climate Group's initiative on global electric mobility called the EV100.

Through EV100, Lyft will transition to clean transport. It is estimated that drivers can save up to $10 billion through the EV transition. As one of the biggest ride-sharing companies in North America, this decision of Lyft Inc. to be on board the EV transition is a major step in making electric vehicles the new norm worldwide.

Lyft Inc. President and co-founder John Zimmer expressed that, more than ever, there is now a need to collaborate and work together in creating a healthier, cleaner, and more equitable communities.

With this current electrification commitment, Lyft is making the most significant pledge for the EV100 initiative. It is estimated that Lyft will work with more than 2 million vehicles over the next ten years to electrify. The company also plans to give its drivers the option of renting electric cars.

This action of Lyft is a response to the demands of its stakeholders for a better future through climate action. This bold commitment by the ride-hailing service is an unprecedented opportunity for private companies to take a stand and take on climate action leadership, which appears to be lacking. Their action will also, in turn, reduce air pollution and highlight brand reputation and consumer trust.

In order to reach its target of 100% electric vehicles, Lyft expressed its plans to lobby for cleaner transport and engage with the government. The company has successfully deployed hundreds of electric cars in Denver, Atlanta, and Seattle. They have also engaged with Colorado policymakers regarding EV tax credits and other partners like the Environmental Defense Fund to enable the company to push through with the initiative successfully.

Lyft's rental cars, "Express Drive," will be at the forefront in the transition to electrification as these are company-owned. Unfortunately, driver-owned vehicles are expected to lag behind company-owned cars. However, Lyft pledges to provide its drivers an option to purchase an electric vehicle by 2026 at the latest. They plan to give this at a much cheaper price ad these EVs have lower total costs of ownership compared to gasoline-powered cars.

The company is a leader in electrification among ride-sharing or ride-hailing companies and has shown its commitment to environmentally-sound initiatives. In 2018, Lyft pledged carbon neutrality, and in 2019, Lyft launched a "green mode" option for Seattle and Portland riders. This option allowed passengers to request or choose electric or hybrid cars.

However, this new commitment represents a step back from its carbon-neutral pledge. Lyft has purchased carbon offsets since 2018 to balance its carbon emissions, but the company has ended this to allow them to direct their efforts on its decarbonization. They recognize that although this may increase their net carbon emissions in the short-term, over the long-haul, the shift to 100% EVs will reduce these emissions significantly.