Uber's HysetCo Investment Targets Market Access Rather Than Hydrogen Economics

Uber has invested in HysetCo, a Paris-region hydrogen taxi operator and refueling network provider, with plans to add nearly 2,000 hydrogen taxis to its platform over five years. The investment takes the form of a convertible loan, allowing Uber to convert the investment into equity at a later date.

However, the underlying hydrogen economics remain challenging. Hydrogen fuel in the Paris region costs €19.20 to €21.60 per kilogram at retail, making energy costs for a Toyota Mirai—the primary vehicle in HysetCo's fleet—three to five times higher per kilometer than battery electric vehicles charging on French electricity rates. Current station utilization averages approximately 100 kilograms per station per day across HysetCo's ten-station network, a throughput level that typically does not support profitable operations for refueling infrastructure.

Uber's convertible loan structure allows the company to maintain an asset-light position while gaining access to HysetCo's taxi-side relationships and market licenses without taking full operational risk. The investment appears positioned to provide Uber with proximity and information regarding a potentially struggling counterparty rather than representing confidence in hydrogen mobility economics.

The fleet primarily consists of Toyota Mirais, sedans that lack the premium positioning typical of executive business transport. No hydrogen refueling station has demonstrated profitable operations in comparable analyses across three continents.

Originally reported by CleanTechnica. Read the full article →