November 25, 2024

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Kia and Uber officials pose for a photo as they announce their partnership agreement to develop electric purpose-built vehicles for Uber's ride-hailing services at the CES 2024 in Las Vegas on Wednesday. (Hyundai Motor Group)

Kia will collaborate with Uber to develop purpose-built vehicles tailored to fit the needs of the car-sharing service provider to expand the automaker’s PBV business, the South Korean carmaker said as the two sides announced their partnership at the CES 2024 in Las Vegas on Wednesday.

According to the announcement, the Uber-customized PBV will be developed on the basis of PV5, Kia’s first PBV slated for mass production in 2025.

The PV5, which will be the first model to be assembled on the carmaker’s electric vehicle platform for PBVs, features a spacious inside equipped with open infotainment system and personalized interior for passenger comfort. Due to its multi-purpose module architecture, the PV5 can serve various usages such as a delivery van, personal recreational vehicle or taxi.

“PBVs will play a key role in the customization of mobility, and by partnering with Uber, Kia aims to deliver industry-leading technology with advanced software and services to enhance the ride-hailing experience,” said Yoon Seung-kyu, CEO of Kia America.

The two companies said they plan to work together to figure out optimized specifications for passengers and drivers of Uber’s ride-hailing service to develop the all-electric van. They will also cooperate to offer user-centered solutions based on software, data and artificial intelligence.

The automaker said it will use Kia Connect, the company’s connected car service, to offer diagnosis and prevention services for the PBV so that drivers can detect signs of malfunction or breakdowns in advance to save the total cost of ownership.

To ease the transition of Uber drivers, Kia and Uber plan to actively cooperate in supplying charging infrastructures such as home and public chargers by utilizing global charging networks. The two sides will also push for developing software that recommends optimized driving patterns and charging routes by analyzing charging stations and vehicle data.

Kia looks to expand the services of Kia Flex, a monthly subscription service to offer customers to drive the premium lineup of the carmaker, in North America with the Uber partnership.

“Drivers on the Uber platform are already EV early adopters, going electric six to seven times faster than the general population in the US and Europe," said Susan Anderson, Uber’s global head of business development.

"By teaming up with Kia and providing our insights, we aim to broaden the appeal and lower the cost of electric vehicles, making them a more natural choice for more drivers."

By Kan Hyeong-woo (hwkan@heraldcorp.com)