Kia, Uber to jointly develop custom-tailored electric ride-hailing PBV

LAS VEGAS – South Korea’s second-largest automaker Kia Corp. has forged a partnership with Uber Technologies Inc. to jointly develop custom-tailored electric purpose-built vehicles (PBVs) for the US-based ride-hailing company.

Under the partnership, Kia will identify and manufacture optimal specifications for drivers and customers of Uber’s ride-hailing platform.

The two companies signed a memorandum of understanding on Wednesday at CES 2024.

Kia said the partnership will enhance EV offerings available on Uber’s mobility platform and support the ride-hailing giant in achieving its 2040 zero-emissions goal.

“PBVs will play a key role in the customization of mobility. By partnering with Uber, we aim to deliver industry-leading technology with advanced software and services to enhance the ride-hailing experience,” said SeungKyu Sean Yoon, chief executive of Kia North America and Kia America.

“Drivers on the Uber platform will have the option to choose Kia vehicles from a comprehensive suite of offerings that will ease the ramp-up of electrification and help achieve both Kia’s and Uber’s sustainability goals.”

‘PLATFORM BEYOND VEHICLE’

The Kia-Uber partnership is part of the Korean automaker’s “Platform Beyond Vehicle” strategy unveiled during the electronics show, which opened on Tuesday.

At CES 2024, Kia Chief Executive Song Ho-sung said the company will launch its first midsize PBV, the PV5, in 2025, followed by a much larger PV7 and the smallest PV1.

The Kia PV5, a modular vehicle, will come in various versions, including the PV5 High Roof, PV5 Van, PV5 Chassis Cab, PV5 robotaxi and PV5 Pickup.

The company said it will unveil a robotaxi developed by Motional Inc., a joint venture between Kia's sister firm Hyundai Motor Co. and Dublin-based auto tech supplier Aptive plc.

Last April, Kia broke ground on its first $757 million PBV factory in Korea. The company plans to start production of up to 150,000 units of PBVs annually as early as next year.

The vehicles to be supplied to Uber will be manufactured based on the Kia PV5 modular vehicle.

TO EXPAND KIA-UBER COLLABORATION SCOPE

Kia and Uber will eventually expand the scope of their collaboration into battery as a service (BaaS) subscription offerings to reduce Uber drivers’ initial vehicle purchase costs.

The collaboration will also see the growth of the Kia Flex program in North America.

Across several US states, the Kia Flex program currently allows drivers to choose Kia vehicles for use on the Uber platform. The expansion of Kia Flex will offer drivers on the Uber platform a comprehensive vehicle package, including EV options, insurance and maintenance.

“Drivers on the Uber platform are already EV early adopters, going electric six to seven times faster than the general population in the US and Europe,” said Susan Anderson, vice president, Global Head of Business Development at Uber.

“By teaming up with Kia and providing our insights, we aim to broaden the appeal and lower the cost of electric vehicles, making them a more natural choice for more drivers.”

Write to Jae-Fu Kim at hu@hankyung.com


In-Soo Nam edited this article.