Uber Eats Teams Up with Gogoro in Taiwan for Green Delivery Program Worth Nearly $30M

Rhea-AI Summary

Gogoro Inc. (Nasdaq: GGR) and Uber Eats Taiwan announced a Green Delivery Program worth nearly $30M, aiming to make it easier and more affordable for Uber Eats delivery partners to switch to electric scooters. The two-year partnership will offer discounts on new Gogoro Smartscooters and battery swapping programs, as well as incentives for deliveries on Gogoro Smartscooters, with the goal of doubling EV deliveries in Taiwan by 2025.

Positive

• Two-year partnership worth close to US$30 million funded by both companies
• Delivery partners to receive discounts on new Gogoro Smartscooters and battery swapping programs
• Incentives for deliveries on Gogoro Smartscooters
• Expectation of doubling EV deliveries in Taiwan from nearly 20% to 40% by the end of 2025
• Research indicating meaningful progress in the adoption of two-wheel EVs

Negative

• None.

Insights

Environmental Analyst

The partnership between Gogoro and Uber Eats Taiwan is a strategic move towards sustainability in urban delivery services. With a significant investment of nearly $30 million, this initiative is not only a corporate responsibility effort but also a business strategy that could influence stock performance positively. As urban areas grapple with pollution and congestion, companies that provide eco-friendly solutions can gain a competitive edge and improve their public image.

From an environmental perspective, the shift from traditional combustion engines to electric vehicles (EVs) in the delivery sector could lead to a substantial reduction in carbon emissions. Given that last-mile delivery riders cover more distance than average consumers, the potential impact on air quality and urban living conditions is significant. Moreover, the adoption of EVs aligns with global trends toward cleaner transportation, potentially setting a precedent for other regions to follow.

Financial Analyst

Investors should note the long-term financial implications of this partnership. The move towards electric scooters could result in operational cost savings for Uber Eats through reduced fuel and maintenance expenses. Additionally, the incentives provided to delivery partners might lead to an increase in the number of riders opting for Gogoro's Smartscooters, thereby driving up the demand for Gogoro's products and services.

It is essential to monitor the adoption rate of this program as it could serve as an indicator of the viability of EVs in the delivery industry. A successful implementation in Taiwan could encourage similar initiatives in other markets, potentially opening up new revenue streams for both Gogoro and Uber Eats. However, investors should also consider the risks associated with the initial high investment and the uncertainty of consumer adoption rates.

Market Analyst

The collaboration is a clear response to the growing consumer demand for sustainable practices in the services they use. As the market increasingly favors companies with strong environmental, social and governance (ESG) credentials, this program could enhance the brand value of both Gogoro and Uber Eats. The anticipated doubling of EV deliveries in Taiwan by the end of 2025 suggests a sizeable market shift.

Considering the wider market, this partnership could act as a catalyst for accelerated growth in the two-wheel EV sector. As Gogoro's research suggests, the oil displacement from two- and three-wheel EVs is significantly higher than that from passenger EVs, indicating a potentially disruptive trend in the transportation sector. Market analysts will be watching closely to see if this trend translates into increased market share for companies like Gogoro and whether it prompts competitors to adopt similar strategies.

The partnership in Taiwan began earlier this year and offered Uber Eats couriers discounted Gogoro Smartscooters and battery swapping pricing as well as Uber Eats incentives for adopting clean modes of deliveries.

TAIPEI, Taiwan, Dec. 18, 2023 /PRNewswire/ -- Gogoro Inc. (Nasdaq: GGR), a global technology leader in battery-swapping ecosystems that enable sustainable mobility solutions for cities and Uber Eats Taiwan, today announced a Green Delivery Program that will make it easier and more affordable for Uber Eats delivery partners to switch to electric scooters.

Uber Eats Teams Up with Gogoro in Taiwan for Green Delivery Program Worth Nearly $30M

The two-year partnership is worth close to US$30 million and is being funded by both companies. Delivery partners will receive discounts on new Gogoro Smartscooters and battery swapping programs, and be given incentives for deliveries on Gogoro Smartscooters. Through the program, Uber Eats expects EV deliveries in Taiwan to double from nearly 20% to 40% of all trips by the end of 2025.

"One of the greatest challenges of our time is transforming urban transportation to cleaner sustainable energy. Through this partnership in Taiwan, Gogoro and Uber are reducing the barriers for Uber Eats riders to embrace and adopt smart mobility in all of their deliveries," said Horace Luke, founder and CEO of Gogoro. "On average, last mile delivery riders ride more than six-times the distance as consumer riders, so enabling these delivery riders to adopt smart sustainable electric transportation can have an accelerated impact on a city."

"Making it easy and affordable for delivery partners to switch to electric scooters is a top priority for Uber Eats in Taiwan," said Chai Lee, Uber Eats Taiwan General Manager. "We have already seen how Uber Eats delivery partners have embraced Gogoro's EV scooters and smart battery-swapping technology. Today's agreement stands to supercharge this, bringing cleaner air to cities across Taiwan and helping us toward our goal of eliminating emissions on all global deliveries by 2040."

The program represents a deepening of Gogoro's and Uber Eats' shared commitment to a greener future for Taiwan. Earlier this year, both companies announced discounted pricing that was widely and quickly adopted by delivery partners.

Accelerating Two-Wheel EV Adoption
Gogoro's research indicates that the adoption of two-wheel EVs is already making a meaningful difference. Two and three wheelers are widely used for daily commutes and deliveries in most megacities, especially in Asia and Africa. The adoption of two- and three-wheel electric vehicles is already making meaningful progress as the oil displacement from two- and three-wheel EVs is approximately five times that of four-wheel passenger EVs. Due to a combination of policy support, growing customer acceptance, improvement in battery technology and new compelling models from vehicle makers, we expect the adoption of two- and three-wheel EVs will continue to accelerate.

About Gogoro Battery Swapping
At the heart of Gogoro's ecosystem is an open and interoperable battery swapping platform that was recognized earlier this year by Guidehouse Insights as the leading battery swapping company for lightweight urban vehicles in the world. Gogoro battery swapping is a new generation of swappable battery refueling that is smart, safe, and continually optimizing itself to be dynamic and versatile for riders, businesses, and communities. In Taiwan, the Gogoro Network supports nearly 600,000 riders and has more than 1.3 million smart batteries in circulation through its network of 12,000 battery swapping stations at over 2,500 locations. With more than 400,000 daily battery swaps and more than 510 million total battery swaps to date, Gogoro battery swapping has saved more than 785,000 tons of CO2 since it launched in 2015.

About Uber Eats
Uber Eats is an on-demand delivery app and website that helps bring millions of people around the world the things they want, at the tap of a button. We partner with over 900,000 restaurants and merchants in more than 11,000 cities across six continents. From specialty local favorites to national brand names, groceries to household essentials and more, Uber Eats has what you want when you want it.

About Gogoro
Founded in 2011 to rethink urban energy and inspire the world to move through cities in smarter and more sustainable ways, Gogoro leverages the power of innovation to change the way urban energy is distributed and consumed. Recognized and awarded by Frost & Sullivan as the "2023 Global Company of the Year for battery swapping for electric two-wheel vehicles" and MIT Technology Review as one of "15 Climate Tech Companies to Watch" in 2023, Gogoro's battery swapping and vehicle platforms offer a smart, proven, and sustainable long-term ecosystem for delivering a new approach to urban mobility. Gogoro has quickly become an innovation leader in vehicle design and electric propulsion, smart battery design, battery swapping, and advanced cloud services that utilize artificial intelligence to manage battery availability and safety. The challenge is massive, but the opportunity to disrupt the status quo, establish new standards, and achieve new levels of sustainable transportation growth in densely populated cities is even greater. For more information, visit https://www.gogoro.com/news and follow Gogoro on Twitter: @wearegogoro.

Forward-Looking Statements
This communication contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or Gogoro's future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates," "going to," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these words or other similar terms or expressions that concern Gogoro's expectations, strategy, priorities, plans or intentions. Forward-looking statements in this communication include, but are not limited to, statements by Gogoro's founder, and chief executive officer and Uber Eats Taiwan General Manager, such as the market opportunity and transition to electric mobility, the capability of Gogoro's technology, the commercial partnerships and Gogoro's business plans including the plans to enable the delivery riders to adopt smart sustainable electric transportation. Gogoro's expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including risks related to the impact of the COVID-19 pandemic, risks related to macroeconomic factors including inflation and consumer confidence, risks related to the execution of its commercial partner's business plans including its business plans to incentivize its drivers to purchase Gogoro two-wheeled electric vehicles or to use battery swapping service, risks related to the Taiwan scooter market, risks related to political tensions, risk related to any infringement of other companies intellectual properties including trademark or patents, Gogoro's ability to effectively manage its growth, Gogoro's ability to launch and ramp up the production of Gogoro battery swapping stations and two-wheeled electric vehicles and control its manufacturing costs and manage its supply chain issues, Gogoro's risks related to ability to expand its sales and marketing abilities, Gogoro's ability to develop and maintain relationships with its partners, risks related to operating in Taiwan market, regulatory risks and Gogoro's risks related to strategic collaborations or alliances including Gogoro's ability to enter into and execute its plans related to strategic collaborations or alliances in order for such strategic collaborations or alliances to be successful and generate revenue, the ability of Gogoro to be successful in the consumer and B2B market, risks related to Gogoro's ability to achieve operational efficiencies, the risks related to the need for Gogoro to invest more capital in strategic collaborations or alliances. The forward looking statements contained in this communication are also subject to other risks and uncertainties, including those more fully described in Gogoro's filings with the Securities and Exchange Commission ("SEC"), including in Gogoro's Form 20-F for the year ended December 31, 2022, which was filed on March 31, 2023 and in its subsequent filings with the SEC, copies of which are available on our website and on the SEC's website at www.sec.gov. The forward-looking statements in this communication are based on information available to Gogoro as of the date hereof, and Gogoro disclaims any obligation to update any forward-looking statements, except as required by law.

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SOURCE Gogoro

FAQ

What is the name of the company mentioned in the press release and its ticker symbol?

Gogoro Inc. (Nasdaq: GGR) is the company mentioned in the press release.

What is the Green Delivery Program announced in Taiwan by Gogoro and Uber Eats?

The Green Delivery Program aims to make it easier and more affordable for Uber Eats delivery partners to switch to electric scooters, offering discounts on new Gogoro Smartscooters and battery swapping programs, as well as incentives for deliveries on Gogoro Smartscooters.

What is the value of the partnership between Gogoro and Uber Eats Taiwan?

The partnership is worth close to US$30 million and is being funded by both companies.

What is the goal of the partnership in terms of EV deliveries in Taiwan?

The goal is to double EV deliveries in Taiwan from nearly 20% to 40% by the end of 2025.

What does Gogoro's research indicate about the adoption of two-wheel EVs?

Gogoro's research indicates that the adoption of two-wheel EVs is already making a meaningful difference, with expectations of continued acceleration.