Uber has teamed up with UK technology startup Arrival to create an electric car for the app-based US ride-hailing firm that will help to cut emissions, the pair said Tuesday.

The vehicle is expected to enter production in the third quarter of 2023 and the two companies will "explore a strategic relationship in key markets, including the UK and EU", according to a statement.

It comes after six-year-old Arrival, which is creating also electric vans and buses, listed on Wall Street's Nasdaq in March.

"Arrival, the global technology company creating electric vehicles using its game-changing technologies, is partnering with Uber to develop an affordable, purpose-built electric vehicle for ride-hailing drivers," the statement said.

The Arrival car "will address the global need to shift ride-hailing and car sharing services... to electric to reduce emissions and improve air quality in cities", it added.

Uber has committed to becoming a fully-electric mobility platform in London by 2025 and by 2030 across North America and Europe, the statement noted.

"As our cities open up we have an opportunity to make sure that urban transport is cleaner than ever before," said Jamie Heywood, Uber's regional general manager for Northern and Eastern Europe.

The car "will be designed around drivers' needs to create a vehicle that is affordable, durable and desirable", said Tom Elvidge, senior vice president Arrival Mobility UK.