Ride-hailing giant Uber Technologies (UBER  ) is reportedly working with electric car maker Tesla Inc (TSLA  ) to encourage drivers to switch to electric vehicles (EVs) in a bid to achieve an emission-free fleet in the U.S. and Canada by 2030.

What Happened: Uber has begun sharing data with Tesla about frequently used routes by its drivers in New York City, Axios reported. This information is intended to identify areas where charging infrastructure is most needed.

Furthermore, Uber is offering its drivers incentives of up to $2,000 on the purchase of its lower-end vehicles such as the Model 3 and Y in addition to federal EV tax incentives, the report said.

Drivers will be given a referral code to buy a new Model 3 or Model Y directly from Tesla. To be eligible for the incentive, drivers must take delivery by March 31 and finish 100 trips by May 15.

The company is also hosting test drive events at specific Tesla stores to acquaint drivers with the EV technology, the report said.

Why It Matters: The move from Uber comes as car rental company Hertz Global Holdings Inc (HTZ  ) is seeking to sell the Tesla vehicles in its fleet citing higher costs of repair and lower resale value.

Last week, the company said that it has decided to sell 20,000 electric vehicles from its U.S. fleet throughout 2024. As of the end of the third quarter, EVs comprised 11% of Hertz's total fleet, with Tesla representing four out of every five EVs in their lineup.