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Transitioning Ridehailing Fleets to Zero Emission: Economic Insights for Electric Vehicle Acquisition - Transportation Network Companies (TNCs) are required to transition to zero-emission vehicles by 2030 per California’s Clean Miles Standard (SB 1014). One significant hurdle faced by TNC drivers is the electric vehicle (EV) acquisition and operating costs versus an internal combustion engine (ICE) vehicle. This study evaluates net TNC driving earnings through EV acquisition pathways such as financing, leasing, and renting, including policy options that improve EV access. Key metrics include 1) total TNC income when considering service fees, fuel costs, monthly vehicle payments, etc. and 2) the time EVs take to reach parity with their ICE counterparts. Monthly comparisons illustrate the earning differentials between new/used EVs and gas-powered (e.g., ICEs, hybrid) vehicles. Analyses employing TNC data from 2019 to 2020 suggest that EV leasing is optimal for short-term low-mileage drivers; EV financing is more feasible for those planning to drive for TNCs for over two years; EV rentals are only optimal for higher mileages nor is it an economical pathway for longer-term driving. According to this research, EV leasing is financially more challenging for TNC drivers who drive a lot due to the annual mileage limit applied to lessees. It is also discovered that acquiring and driving a used EV for TNCs is not as economically beneficial as a new EV. Furthermore, sensitivity analyses suggest that EV charging price discounts are effective in shortening the time for EVs to reach cost parity over ICEs. This is because even a small discount can make a big difference when factored in with the extensive TNC miles driven. Ridehailing drivers are also found to experience a total asset gain if they consider reselling their TNC vehicle after two to three years after acquiring it. Findings from this research are applicable to stakeholders such as public state agencies, ridehhailing companies, EV charging and rental companies, etc. In addition, this research can serve as a reference for ridehailing drivers to decide on the most ideal or economically sustainable pathway in which they can acquire an EV, and thus help them regain the ability to survive under the inevitable trend of fuel switching toward electricity.
