Uber has introduced a levy to fund electric vehicles in London. But who exactly is benefiting?

Bleurgh. Image: Getty.

Uber is introducing a levy of 15p per mile on London users to help fund a transition to electric vehicles and help tackle air pollution. Its goal is to encourage half its drivers to go electric by 2021 and to go fully electric by 2025.

There are a number of benefits to the idea. Moving to cleaner transportation is an important public good with a myriad of general health benefits. It should be an urgent priority for all UK cities. But the question of who pays for this transition is fundamental to whether it is done fairly. As a process, change needs be done in partnership with people, not to them.

So who is actually being asked to foot the bill for this much needed transition? Fresh analysis by the New Economics Foundation shows that while the PR benefits are likely to accrue to Uber, its consumers and drivers will foot the bill in its entirety, while also taking on much of the risk.

Uber estimate that drivers will be eligible for £4,500 in funds to purchase a new electric vehicle after three years of service – the maximum period of time for which drivers can accrue credit. By comparison, the cost of a cheap second-hand electric car meeting Uber’s requirements for UberX costs in excess of £12,000, while a second hand vehicle suitable for UberLux would set drivers back around £45,000.

For those drivers receiving around £4,500, this would still imply the need to contribute thousands of pounds, if not tens of thousands, in personal funds. Even after allowing for a fall in prices for electric vehicles, drivers are being asked to make a minimum contribution of between 55 per cent and 85 per cent towards the total cost of electrification. The remainder of the cost will be met indirectly by consumers – either in the form of higher charges or else being priced out Uber’s services altogether.


Where drivers don’t have access to this sort of cash, the expectation will be that they borrow – which means taking on the risk of debt repayments while earning close to minimum wage. Being able to keep the 15p levy once driving an electric vehicle is unlikely to cover the cost of new interest payments. But failure to use the scheme at all could mean unemployment after 2025.

While drivers are forced into arrears to consolidate their jobs, Uber may also find itself with a considerable surplus from the scheme, as a result of drivers leaving the platform early or choosing not to apply for the grant. Uber has suggested that any surplus will be reinvested into supporting facilities, such as charge points for electric cars. But this means that the cost of moving to green infrastructure is coming at the expense of extra private debt for drivers (which could otherwise have been funded out of the levy). Such a trade-off is simply incompatible with a green transition that is morally just.

The shift in strategy from Uber towards more renewable transport technology is clearly welcome on environmental grounds. Doing so solely at the expense of consumers drivers is not. For any transition to be fair, Uber needs to meet its share of the costs.

Duncan McCann is a Researcher at the New Economics Foundation. He tweets @DuncanEMcCann. You can find NEF’s work on transport here.

 
 
 
 

Older people need better homes – but then, so does everybody else

Colne, Lancashire. Image: Getty.

Towards the end of last year, I started as an associate director at the Centre for Ageing Better, working particularly on our goal around safe and accessible homes. Before I arrived, Ageing Better had established some ambitious goals for this work: by 2030, we want the number of homes classed as decent to increase by a million, and by the same date to ensure that at least half of all new homes are built to be fully accessible.

We’ve all heard the statistics about the huge growth in the number of households headed by someone over 65, and the exponential growth in the number of households of people over 85. Frustratingly, this is often presented as a problem to be solved rather than a major success story of post war social and health policy. Older people, like everyone else, have ambitions for the future, opportunities to make a full contribution to their communities and to continue to work in fulfilling jobs.

It is also essential that older people, again like everyone else, should live in decent and accessible homes. In the last 50 years we have made real progress in improving the quality of our homes, but we still have a lot to do. Our new research shows that over 4 million homes across England fail to meet the government’s basic standards of decency. And a higher proportion of older people live in these homes than the population more generally, with over a million people over the age of 55 living in conditions that pose a risk to their health or safety.

It shouldn’t be too difficult to ensure all our homes meet a decent standard. A small number of homes require major and expensive remedial work, but the overwhelming majority need less than £3,000 to hit the mark. We know how to do it. We now need the political will to make it a priority. Apart from the benefits to the people living in the homes, investment of this kind is great for the economy, especially when so many of our skilled tradespeople are older. Imagine if they were part of training young people to learn these skills.


At a recent staff away day, we explored where we would ideally want to live in our later lives. This was not a stretch for me, although for some of our younger colleagues it is a long way into the future.

The point at which the conversation really took off for me was when we moved away from government definitions of decency and accessibility and began to explore the principles of what great homes for older people would be like. We agreed they needed light and space (by which we meant real space – our national obsession with number of bedrooms as opposed to space has led to us building the smallest new homes in Europe).

We agreed, too, that they needed to be as flexible as possible so that the space could be used differently as our needs change. We thought access to safe outdoor space was essential and that the homes should be digitally connected and in places that maximise the potential for social connection.

Of course, it took us just a few seconds to realise that this is true for virtually everyone. As a nation we have been dismal at moving away from three-bed boxes to thinking differently about what our homes should look like. In a world of technology and factory building, and as we build the new generation of homes we desperately need, we have a real chance to be bold.

Great, flexible homes with light and space, in the places where people want to live. Surely it’s not too much to ask?

David Orr is associate director – homes at the Centre for Ageing Better.