| Thanks for reading Hyperdrive, Bloomberg's newsletter on the future of the auto world. Ride-hailing companies have big plans to go electric, with Uber and Lyft aiming to only offer zero-emission rides in the US and Canada by 2030. They're going to have a hard time hitting that target unless more affordable offerings emerge, and fast. Ride-hailing electrification has outpaced that of privately owned passenger vehicles in China, Europe and India. In the US, the EV share of privately owned passenger vehicles is higher than that of the ride-hailing fleet. Part of the reason the US is lagging other geographies is the lack of inexpensive options. The leading market in terms of ride-hailing electrification — China — has more battery-electric vehicle models available to the public than other regions, with 81 out of 257 variants available in 2023 being suitable for ride-hailing. While there has been almost no increase in the number of EVs well-suited for Didi and other services in China since 2021, there are models available that meet the typical ride-hailing driver's criteria: cheap, large enough to transport passengers comfortably and long-range enough to limit stops to charge. Europe has both the highest percentage and absolute number of EV models suitable for ride-hailing. The pool has grown from 59 models in 2021 to 87 in 2023. While availability in the US has improved — from 13 in 2021 to 32 in 2023 — the market still significantly lags China and Europe. Most ride-hailing platforms offer their users a variety of services, ranging from base transportation (think Didi Express or UberX) to higher-priced offerings in nicer vehicles that are larger or more comfortable (such as Lyft Preferred or Bolt Comfort in Europe). The higher prices from the premium services offer a greater return for drivers but require more investment in the vehicle. Ride-hailing services that offer options for electric-only trips will typically price these services at the same level as an equivalent service. In the US, 88% of EVs sold in 2022 were of a caliber suitable for Uber Comfort Electric. Only 1.8% of EVs sold were suitable for Uber Green but failed to qualify for Uber Comfort Electric. The median price of vehicles in the Uber Green category is around $30,000, while the median price of vehicles in the Comfort Electric category is $68,000. Why is this a problem? Non-premium services make up the lion's share of hailed rides. UberX, for example, accounts for an estimated 80% of Uber's mobility revenue. If only relatively premium vehicles are available, then it will be difficult for ride-hailing companies to electrify their core mobility offerings. In New York City, a ride-hailing market with 75,000 cars, only 1.2% of those vehicles are battery-electric. The top three EV models are the Tesla Model Y and Model 3, and Kia's Niro. These vehicles cost around $40,000, well above the roughly $26,000 starting price of the Toyota Camry, which makes up more than 24% of ride-hailing vehicles in the city. This problem is not unique to the US, although it is more severe there than in other markets that have achieved higher ride-hailing electrification. In the UK, for instance, 13% of battery-electric vehicles sold last year were eligible for Uber Green, and 66% were eligible for Uber Comfort Electric. For ride-hailing to continue to electrify in the US, new electric models will need to enter the market that are more affordable for drivers to purchase and operate. If they don't, then electric ride-hailing will remain a niche offering. — By Andrew Grant  Vital Materials' advanced materials plant in Guangdong, China. Source: Vital Materials When China's Vital Materials bought up a $600 million stockpile of obscure critical minerals in early 2020, it barely raised an eyebrow outside the niche world of minor metals. Spin forward a few years, and the influence of a company some in the industry have still barely heard of is a timely illustration of the scale of the challenge to loosen China's grip on raw materials critical for electric vehicles, wind turbines and high-end semiconductors. | 
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