Rideshare Drivers Want to Electrify. Smart Incentives Make It Possible

States and cities aiming to reduce transportation emissions should make rideshare electrification programs a core climate strategy. That’s because when high-mileage rideshare drivers go electric, the emissions benefits add up quickly.  

For policymakers, the challenge is figuring out how to design incentive programs that effectively encourage rideshare drivers to go electric and deliver cleaner air and meaningful environmental justice outcomes.  

The outsized impact of rideshare 

Rideshare drivers for services like Uber and Lyft, known as transportation network companies (TNCs), log far more miles than the average personal car driver. Plus, those miles are concentrated in urban corridors.  

For example, California rideshare vehicles drive an average of 180 miles per day, nearly eight times more than a typical personal vehicle, according to a 2020 UC Davis study. Because of the extra miles associated with deadheading (driving without a passenger), non-pooled (i.e., driver-owned) rideshare trips generate about 47% greater emissions than the average private car trip, based on a Union of Concerned Scientists report. 

Lyft’s 2023 Economic Impact Report found that 43% of its rides in California occur in low-income areas, meaning air pollutants from rideshare drivers are disproportionately impacting underserved communities. 

What rideshare drivers say they need  

Designing effective programs starts with understanding rideshare drivers’ real-world experiences.  

A 2025 policy brief from the UC Berkeley Transportation Sustainability Research Center (TSRC) found that for most rideshare drivers, acquiring an EV is largely out of reach due to high upfront costs compared with conventional vehicles. 

Across studies of rideshare drivers, several themes emerge: 

• Upfront cost reduction is critical. The higher sticker price of EVs compared to gas vehicles is cited repeatedly as a barrier that incentives can address.
• Charging access matters. Drivers often face limited charging options, especially in urban and apartment settings. Support for charging infrastructure boosts EV feasibility.
• Operational savings alone aren’t enough. Drivers recognize lower fuel and maintenance costs but say upfront cost barriers and charging logistics still make adoption challenging without support.
• Targeted incentives (e.g., purchase grants, discounts) improve the payoff. When ongoing incentives are offered that lower net total cost of ownership, drivers are more willing to consider EVs. 

This analysis underscores the importance of government and utility incentives for both vehicles and charging to help rideshare drivers overcome cost and infrastructure barriers.  

What the economics tell us 

The economics of owning an EV as a rideshare driver can be favorable when policies are structured correctly. At the 2025 Behavior, Energy & Climate Change (BECC) Conference, CSE presented an analysis comparing the monthly costs (including car loans, insurance, charging and maintenance) of owning a battery-electric vehicle (BEV) or plug-in hybrid (PHEV) against a comparable gasoline vehicle for high-mileage rideshare drivers.  

The study found that vehicle ownership across all vehicle types can be expensive for low-to-moderate income drivers, with total monthly operating costs comprising more than 15% of monthly income. However, a $10,000+ incentive, combined with low-interest rate financing, reduced charging costs, and per-mile wage increases, can make operating a BEV less costly than gasoline-powered vehicles for high-mileage drivers (500 miles per week or more).  

In other words, EVs pencil out for rideshare drivers who spend the most time on the road, if states and regulators help close the affordability gap. 

Ride Clean Mass is an early example of a rideshare program 

Massachusetts is among the first states to implement a dedicated rideshare and taxi electrification program. The Ride Clean Mass program, for which CSE provides data collection and reporting support, offers rebates up to $6,500 for eligible rideshare and taxi drivers who buy a new EV and $2,500 for those buying a used EV. By stacking other benefits, drivers can save even more. 

Ride Clean Mass is structured around the idea that drivers are small business owners. It pairs financial incentives with outreach and education delivered through partners who work directly with rideshare and taxi drivers, ensuring that those who stand to benefit most know and understand what’s available. 

California’s rideshare program is on the way 

California is following a similar path with the upcoming Drivers Assistance Program program, which CSE is designing and administering for the California Public Utilities Commission. The program was created to support California’s Clean Miles Standard, which requires companies like Uber and Lyft to progressively reduce greenhouse gas emissions per passenger mile and achieve 90% zero-emission vehicle (ZEV) miles by 2030. 

The incentive program, expected to launch in mid-2026, is funded through a per-trip fee on TNC rides, paid by the rider. It is designed to help eligible high-trip-volume, low-income drivers transition to zero-emission vehicles with financial incentives for buying or leasing new or used ZEVs. The program will offer both point-of-sale and post-purchase incentives as well as annual charging incentives for drivers who continue to meet the required minimum trip threshold (effectively targeting the highest mileage drivers). The holistic design of this program will help defray both upfront and ongoing costs to EV drivers.  

A playbook for states and cities 

The research and early program examples point to a clear framework for implementing rideshare incentives: 

• Focus on high-mileage and high-trip rideshare and taxi drivers, where each EV conversion delivers outsized emissions reductions.
• Pair incentives with financing and charging solutions.
• Make an even bigger impact through specific or increased rebates for low- and moderate-income drivers. 
   

For help with your state or city rideshare EV incentive program, contact CSE at consult@energycenter.org.