Hong Kong-listed BYD Co. Limited (HK:1211) announced a multi-year partnership with the U.S.-based ride-hailing service provider Uber Technologies (UBER) to roll out electric vehicles (EVs) globally. As part of this partnership, 100,000 new BYD EVs will be added to the Uber platform in key global markets.
Uber runs the largest on-demand EV network globally, while BYD is a top global EV manufacturer. With this deal, both players aim to speed up the EV adoption on the Uber platform to facilitate the shift to EVs.
BYD shares are trading down by 0.70% as of writing.
Details of the BYD-Uber Partnership
Under this partnership, the EV rollout will start in Europe and Latin America and will later extend to markets in the Middle East, Canada, Australia, and New Zealand. Additionally, this deal will provide Uber drivers with access to top-tier pricing and financing for BYD vehicles on their platform.
For Uber drivers, higher costs of EVs and limited financing options are major obstacles. Nonetheless, BYD vehicles are known for their affordability and low maintenance and repair costs, providing a suitable opportunity to facilitate the shift to EVs. Both companies will also provide discounts on vehicle maintenance, charging, and leasing, lowering the EV ownership cost for drivers.
Further, the companies announced plans to collaborate on integrating BYD’s vehicles with self-driving technologies on Uber’s platform.
Is BYD a Good Stock to Buy Now?
According to TipRanks, 1211 stock has received a Strong Buy rating, backed by all Buy recommendations from nine analysts. The BYD Co. share price target is HK$335.83 which implies an upside of 49.4% from the current trading level.
