Uber’s CEO said Thursday the company is working with auto makers to design electric vehicles specifically for ride-hailing and deliveries. 

CEO Dara Khosrowshahi discussed the plan during a Wall Street Journal event Thursday on the sidelines of the World Economic Forum in Davos, Switzerland. 

Khosrowshahi said the specialized vehicles could be both environmentally and cost friendly. 

Ride-hail vehicles for cities, for instance, could have lower top speeds, as well as seating areas where passengers can face each other.

“I do think that top speeds, for example, that many cars have are not necessary for city driving that’s associated with ride-share,” Khosrowshahi said. “That can reduce the specs, and if you reduce the specs, you can reduce the ultimate cost.”

Delivery vehicles, meanwhile, could be smaller — two or three wheels with trunk space for packages, groceries and meals. 

The vehicles could “get through traffic easier and have a much smaller footprint, both in terms of environmental but also traffic footprint than, let's say, a car to go and deliver groceries,” Khosrowshahi said.

He declined to name the car companies Uber is working with. 

In 2021, Uber and British electric car maker Arrival announced they are partnering on developing an affordable vehicle made specifically for ride-hailing.

Uber has set a goal of its fleet going fully electric by 2030 in U.S., Canadian and other major global cities — and by 2025 in London. Uber drivers buy or rent their own vehicles, and electric vehicles have a higher up-front cost than gas vehicles. 

Khosrowshahi also said Friday that Uber is not planning any company-wide layoffs. Fellow tech companies Amazon, Meta, Microsoft and Salesforce have announced thousands of job cuts in recent weeks.