Exhibit to Agenda Item #1b Board Strategic Development Committee Meeting and Special SMUD Board of Directors Meeting Tuesday, February 13, 2018, scheduled to begin at 5:30 p.m. Customer Service Center, Rubicon Room Powering forward. Together.
WORKING TOWARDS A MORE SUSTAINABLE FUTURE OF MOBILITY SMUD Board February 13, 2018 Austin Heyworth heyworth@uber.com
New solutions are emerging to drive a more sustainable future of mobility Themes at the intersection of new mobility technology and smart urban development BEHAVIORAL SHIFT VEHICLE GREENING COMPLEMENTARITY INFRASTRUCTURE TRANSFORMATION...away from solo, private car trips to shared journeys...via turnover to cleaner fuels and higher efficiency technologies...with public transit and multi-modal mobility on more sustainable modes...to more human-centric designs as demand from private cars shrinks
Built-in efficiency Uber s business works best when we ENABLE MORE PEOPLE TO MOVE WITH... FEWER FULLER MORE EFFICIENT...VEHICLES & TRIPS
Rider-driver GPS matching Forward dispatch Pre- & rematch technology Trip-swap technology FEWER One driver on Uber s network can serve as many as 10 or more riders per day POOL UberXL Split-fare Multi-destination trips FULLER 2 strangers in 1 car is how we began...3 or more is POOL & other innovations Smart routing Aggressive driving notifications Vehicle-to-trip right-sizing Driver vehicle solutions support EV & hybrid focused initiatives MORE EFFICIENT A driver on Uber s network knows every dollar saved on fuel is a dollar in their pocket
FEWER FULLER MORE EFFICIENT BY DESIGN Rider Trips Rider Miles Fuel impact Vehicle Vehicle Miles Vehicle Mile passenger-mile
2010 V Pilots & Demonstrations earning about shared + electric mobility Active, Publicly Announced Lisbon Porto Paris London Madrid Portland Singapore Amsterdam Dubai Zurich Salt Lake City Past Efforts Johannesburg Cape Town Boston Chicago Mexico City New York City Prague Kazan Beijing Wuhan Hong Kong
CASE STUDY - London EV Pilot CITY NEEDS / POLICY THREATS London imposing Ultra Low Emission Zone (ULEZ) Regulations begin 2018 emissions requirements ratchet up until all newly licensed PHV are zero emission capable from 2023 Concern over conflation of Congestion/Air Quality DESIGN RESULTS Partner with respected NGO (Energy Saving Trust) >60 fully EVs: Nissan LEAFs, BYD E6s & Tesla EVs fully incorporated within uberx Cheap vehicle rental negotiated, incentives paid direct to partners, deals agreed with charging companies >250k miles driven >40,000 Riders in 4 months Nearly 50% partners returned EVs, many within 3 days 1 Baby... KEY INSIGHTS Riders enjoyed experience - ratings stable, good feedback. Potential as EV multiplier. >50% of partners wanted to work at least 10 hours more per week than was possible due to fare-time lost due to EV charging needs Vehicles heavily reliant on on-street, fast charging (currently limited)
EVs ARE A KEY TOOL FOR DRIVING MORE EFFICIENT VEHICLES & TRIPS 1. Uber seeks to build a more sustainable future of mobility by moving more people needing on-demand services with fewer, fuller, and more efficient vehicle trips. Supporting plug-in electric vehicle technologies is one way we can drive more efficient vehicle trips. 2. We re excited about the potential for electric vehicles (EVs) to bring many benefits to drivers, riders and cities. 3. Ridesharing platforms can offer new, market-driven tools to help advance EV adoption. 4. While we re optimistic about the future of EVs in ridesharing applications, we are clear-eyed about very real business obstacles large scale adoption faces. 5. We want to collaborate with others to better understand the unique opportunities and challenges that ridesharing platforms present for EV adoption.
EV-related learnings so far DRIVER SEGMENT MISMATCH EV total cost of ownership optimal @ 60k+ mi/yr (4x US consumer average) Optimal total cost of ownership (TCO) & incentives available to vehicle & homeowners EVs & INFRASTRUCTURE NOT DESIGNED FOR SHARED MOBILITY Few mid-market, all-around performance, affordable EVs (like, e.g., GM EV Bolt) Charging stations built for consumers and commuters, not ridesharing: slow, outside of city centers, inside garages, etc. Driver focus groups in Portland, Pittsburgh, and CA report lack of fast charging in areas of high demand (e.g. downtown, airport queues) as biggest challenge to drive an EV with Uber EV OPPORTUNITY COST PENALTY (Versus standard or hybrid car) Drivers must 1. Drive further to find charging 2. Figure out how to access stations built for other users 3. Wait for their vehicle to recharge 4. Drive back to areas of high mobility demand 5. Do all of that more often due to shorter range = time away from earning fares!
Summary insights from focus groups with EV drivers Current EV drivers on our platform love their car & engage riders about it, but note significant issues: Car range (ideally greater than 150-200 miles) Lack of fast charging options, especially where they want them (e.g. downtown & at airport) Uber drivers are the perfect evangelists for electric vehicles as they interact with dozens of people a day and EVs tend to sell themselves -- Giant ride and drives every day Charging experience is THE central pain point for rideshare drivers Access to home charging, parking costs, reserved charging, ICE ed out EV drivers are highly responsive/aware of economics and (potential) incentives As miles go up, the cost equation makes more and more sense Desire to be green, and optimism for the future Prospective EV drivers are interested in (1) potential cost savings and (2) cool factor but have concerns: Initial price tag of EVs and uncertainty around total cost versus, say, a Prius (price, incentives, ongoing costs, etc.) Car range and charging (Where? How? How much?) Supporting EV Drivers with (1) information, (2) community, (3) product, (4) incentives, and (5) infrastructure will help to strengthen and grow our EV driver base The EV focus groups, themselves, provide a great stakeholder engagement opportunity Full EV Focus Group insight deck here ***Next EV Driver Focus Group in Sacramento on Tuesday, March 13!!!
SHARED ELECTRIC AUTOMATED
SHARED ELECTRIC AUTOMATED Shared As of 2017, Uber s network shared 75M monthly active riders 3M active drivers 600+ cities across 79 countries SHARED 4B trips completed in 2017 15M shared trips per day 20% riders select POOL (in 60+ cities, where available) Electric Ridesharing helps EV adoption, EVs help ridesharing expansion Electric vehicles <1% global new car sales after decades of government spending today, a hundred EVs on Uber s network can serve SHARED 100,000 s of riders In London, our EV pilot program moved 40,000 people in 4 months with just 60 EVs Automated Automated mobility promises dramatic efficiency gains in the future, so we re real-world testing today with automated UberX: Pittsburgh & Phoenix, and San Francisco Over 2M miles Over 75,000 riders Automated heavy duty trucks & light-duty cars testing on CA roads