Imagine this: it’s 2050, and the highway hums only with the quiet purr of electric vehicles. Gas cars are a thing of the past or a trophy your eccentric uncle brings to car shows. You haven’t stopped at a gas station in nearly two decades. Not long ago, this scene seemed far-fetched. Now? It’s not only a possibility – it’s a near certainty.
In the years prior, even with government subsidies in place, the auto industry struggled to overcome consumer concerns. Now, though, consumer confidence in electric vehicles is soaring; according to Experian, new registrations of electric vehicles have grown by 250% in the last five years.
The result? A clear path toward an all-electric future. At You.Car, we’re banking on it. We believe the future of rideshare is electric. Here’s why.
Because the auto industry is going electric
The move toward electric vehicle production has been slow, but it’s preparing to ramp up speed. The most recognizable names in auto manufacturing – Bentley, Ford, Honda, Mazda, and Toyota, just to name a few – are focused on electric vehicle production, with many committing to a future date when they will only produce electric cars. Though this date is far off for some (many have cited 2050 as their goal for carbon neutrality), it does signify a substantial shift in corporate planning.
Government regulations and incentive programs are also jumping on the electric-car bandwagon, so to speak, including the EU’s “Fit for 55” program, which aims to reduce greenhouse gas emissions by 55% by 2030 by aligning climate, energy, land use, transport, and taxation policies. In the US, the Biden administration set a goal to be at 50% EVs by 2030.
Even with government backing, though, a shift toward electric vehicles requires more than just the automotive industry making the change. Education and labor need to adapt, too. Universities have to evolve to focus on the new skill sets necessary to produce electric vehicles instead of gas-powered cars. We’re starting to see that shift: the University of Michigan, which would normally have 80+ students enrolled in courses on automatic transmissions, didn’t have a single student sign up for that class. Instead, education and labor are looking toward software engineers to fill the skills gap in the shift from gas cars to EVs.
Because consumers want to align their purchases with their values
The latest Mobility Consumer Index indicated that over 50% of the people planning to buy a car in the near future will opt for either a fully electric vehicle or, at least, a hybrid vehicle. That’s not very surprising – while the upfront cost can sometimes be steeper than for a gas car, electric vehicles are more cost-effective when it comes to maintenance and charging.
Beyond just the long-term cost savings, though, consumer behavior demonstrates that people are more interested in values-based purchases these days than ever before; 82% of shoppers claim that they prefer for a brand’s values to match their own. Some associate this shift in mindset with the pandemic, when people had time to reflect on their priorities. Sustainability initiatives are particularly impactful, with a majority of customers stating they are interested in supporting sustainable brands and eco-friendly companies, and they’re willing to pay more for it. This is never more true than for the younger generations. 83% of millennials list transparency and value alignment among their top spending priorities, compared to 21% of the 55+ demographic.
With climate change on the news and in our minds, it’s no surprise that troves of car buyers are turning to electric vehicles for their next purchase.
Because there are incentives to buy an electric car
If values-driven buying doesn’t pique interest, cost savings will – and electric vehicle ownership is where the tax breaks are right now. At the federal level, prospective buyers can expect a $7500 tax incentive for purchasing an EV assembled in North America, and by 2024 they don’t have to wait for April 15th to see that money; they can take it as an immediate price reduction at the dealership. Even used EVs receive a $4000 tax benefit. Additional tax credits are available at the state and local level, plus incentives for charging stations and solar energy use.
In addition to these government programs to encourage EV purchases, companies are innovating, too. You.Car is one of them – our all-electric rideshare company empowers everyday people to make the shift to electric by offering a unique loan paydown program. With it, drivers can automatically transfer earned wages and extra income to their car loan company, making the bill due at the end of the month more manageable.
We believe the future of rideshare is electric – not only because we’re putting in the work to encourage it, but because the world at large is ready to make the change. Are you? Check out the advantages of becoming a You.Car driver, and help us save the Earth one ride at a time.