(Green Car Reports) — The EV startup Arrival is dropping plans for an Uber electric car and electric buses to refocus on electric vans, the Financial Times reported.
The project to build a dedicated EV specifically for Uber’s ride-sharing service could be revived if sales of Arrival’s electric van start generating revenue, according to the report.
U.K.-based Arrival announced a business reorganization on July 12 but said that specific details wouldn’t be provided until its next financial update on August 11.
Uber revealed the car project in October 2021—in what appeared to be a well-thought-out early prototype form. Simply put, it was an inexpensive EV for Uber use, aiming for a 2023 market launch.
With the project, Arrival had said that it and Uber would “explore a strategic relationship in key markets,” including the United States, the U.K., and the E.U.
Meanwhile, a planned U.S. factory in South Carolina was supposed to focus on electric buses—which begs some questions about U.S. plans for the company. Arrival plans to use a “micro-factory” concept, based around smaller facilities tailored to regional needs, along with a localized supply chain and use of local labor pools to minimize emissions and create a regional economic boost.
California is aiming to mandate electric vehicles for ride-hailing by 2030. So it’s looking less likely that Arrival’s EV will be one of the shapes of that shift.
That just leaves Arrival’s electric van, which is slated to be manufactured at a U.K. facility. UPS has invested in Arrival—and in 2020 it ordered 10,000 of the stylish delivery vans.