Tina Bellon

(Reuters) – Uber Technologies (NYSE.) Inc announced Wednesday that it has formed a partnership with Hertz, a rental car company. Hertz will offer 50,000 Tesla vehicles to Uber’s ride-hail drivers (NASDAQ.:) Inc by 2023.

Hertz will allow Uber drivers to rent Teslas starting in November in Los Angeles, San Francisco and San Diego. It will also be available in Washington DC later in the year.

Uber drivers will have exclusive access to Tesla rental vehicles, which include the Model 3 sedan. The rentals cost $334 per week and includes insurance and maintenance. Uber stated that the cost of renting a Tesla will drop to $299 per semaine or less as the program grows over the next year.

Uber’s announcement is coming just days after Hertz announced that it would purchase 100,000 Tesla vehicles before the end 2022. Share prices rose after news of Tesla’s largest ever order prompted by a market rally that saw Uber surpass $1 trillion in market value.

Uber has made the most important step to expand the use of EVs through Wednesday’s agreement. By 2030, the company will be operating only electric vehicles in America, Canada, Europe, and elsewhere worldwide.

Only a few Uber drivers are able to afford higher EV prices. In fact, only 0.15% were driving electric cars in U.S.A and Canada in 2019, according to company data.

Because ride-hail drivers spend more time empty-handed, they produce more pollution per passenger mile traveled. Research generally suggests that electrifying one ride hail vehicle will reduce the amount of carbon dioxide as doing so for three gas-powered cars.

Hertz is ending its bankruptcy and hopes that the EV focus will help it stand out from competitors.

As a way of exposing more people to alternative fuel-powered cars, carmakers may also partner with ride-hail agencies.

Tesla has not responded to my request for comments.