An Uber Technologies Inc.-backed South African EV fleet manager, Valternative, has said that the ongoing U.S.-Israel and Iran war has accelerated EV penetration in the region. The conflict has sent fuel costs soaring, making electric vehicles a more attractive option for drivers and ride-hailing customers alike.

South African Drivers Will Not Go Back to ICE Vehicles

In a report by Bloomberg on Sunday, Valternative co-founder Mahomed Jeewa said that Uber had approached the company to bolster its presence in the South African market against Bolt, a local ride-hailing company that offers low-cost rides with Indian automaker Bajaj's Qute. While the Qute runs on fossil fuels, Valternative and Uber are betting on an all-electric approach, and the Iran war is helping drive that shift even in a country where charging infrastructure remains sparse.

Fuel costs in South Africa have stayed high as the conflict sends supply shocks through global markets. Jeewa said that once South African drivers or customers “get a taste of electric,” they won't go back to internal combustion engine vehicles. A report by My Broadband on Monday, citing industry data, said that 1,903 fully-electric vehicles were sold in South Africa during the first half of the year — a small number that underscores the country's early stage of electric mobility.

Fleet Expansion, Charging Woes

Valternative uses stripped-down versions of China's Henrey Automobile Technology's Henrey EV4, without features like a heater, to keep costs down. The company is in the process of deploying 360 cars in Johannesburg and has plans to expand to other cities. “What Covid did for delivery in South Africa is what this conflict is doing for electrification,” Jeewa said.

However, drivers of the fleet say they need better infrastructure. One driver noted that charging takes up an hour of their time. Jeewa said Valternative plans to add over six to seven charging stations in the coming months and ultimately hopes to expand to other countries like Morocco, Egypt, Ghana, and more.

Waymo To End Uber Partnership?

The report comes as Alphabet Inc.'s Waymo is reportedly eyeing an exit from its partnership with Uber after the companies officially parted ways in Phoenix, Arizona, in May this year. Meanwhile, Uber bolstered its presence in the food delivery sector by reaching an agreement to acquire German food delivery platform Delivery Hero SE in a deal worth $14.8 billion. Uber CEO Dara Khosrowshahi said the deal would let Uber “double the number of markets” it operates in.