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Lyft To Switch To 100% All-Electric Vehicles By 2030

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Lyft To Switch To 100% All-Electric Vehicles By 2030

Lyft Inc. (NASDAQ: LYFT) on Wednesday announced that all-electric vehicles would make up for 100% of its fleet by 2030.

Coronavirus Changed The Company's Course

The ride-hailing company said the novel coronavirus (COVID-19) pandemic had provided an "inflection point" for humankind, and "rather than hunker down and ride out COVID-19, we chose to stand up and accelerate our efforts to address the climate crisis."

According to Lyft, the prices of all-electric vehicles will drastically reduce by 2025, making them more affordable for the drivers on its platform. The company said it would also rent zero-emission vehicles to the drivers.

"Success breeds success, and if we do this right, it creates a path for others," the San Francisco-based company's co-founder John Zimmer said in a statement. "If other rideshare and delivery companies, automakers, and rental car companies make this shift, it can be the catalyst for transforming transportation as a whole."

Short-Term Carbon Impact May Rise

Lyft noted that it is ending its carbon offsets program to let itself focus on reaching the new milestone it has set for itself.

The abandonment of the old program may cause net emissions from the existing fleet to rise in the shift, the result would be more than offset in the long-term from the widespread adoption of zero-emission transport, according to the company.

The decision comes at a time when ride-hailing companies are facing increased criticism over their carbon emissions.

A study published by Union of Concerned Scientists, a non-profit environmental advocacy group, in February suggested that Lyft and rival Uber Technologies Inc. (NYSE: UBER) contribute more to pollution than comparable private car rides, Reuters reported at the time. The group called on the two companies to switch to more electric vehicles.

Lyft Price Action

Lyft shares closed nearly 3.8% lower at $35.32 on Wednesday. The shares dropped another 0.2% in the after-hours session.

 

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