The taxi industry is at a pivotal moment, with the decision between Electric Vehicles (EVs) and Internal Combustion Engine (ICE) vehicles becoming increasingly critical. As a trusted partner, Couriersdepot.com is committed to providing the most up-to-date insights to help taxi fleets make informed decisions. Today, we take a more forensic look into the hidden advantages of EVs, including cost savings, insurance benefits, environmental impacts – and crucially, how to be eligible for a government grant, but it takes some hoop jumping.
While EVs typically have higher upfront costs, this gap is narrowing. For instance, the MG5 EV is a popular choice for taxi fleets and offers competitive pricing compared to its ICE counterparts, depending on the trim levels chosen. However, it's crucial to consider the total cost of ownership rather than just the initial purchase price. For instance, the MG5 EV starts at around £30,995, but discounts can bring this price down significantly.
Long-term Savings: Despite higher upfront costs, EVs offer substantial long-term savings through reduced fuel and maintenance costs.
Despite the demise of the Plug-in Car Grant (PiCG), it’s still possible to gain government support. The Electric Vehicle Infrastructure Grant for Staff and Fleets is designed for SMEs with fewer than 250 employees, including taxi firms. However, there are specific conditions that must be met:
1. Eligibility: Taxi firms must be SMEs with fewer than 250 employees.
2. Property Requirements: The charging infrastructure must be installed on the firm's property or a property where they have the legal right to install it.
3. Use: The charging points must be for the exclusive use of staff or fleet vehicles, not for public use.
4. Parking Requirements: The firm must have dedicated off-street parking spaces that are clearly defined and owned or legally accessible by the firm.
While taxi firms can apply for this grant, it is primarily designed to support businesses installing charging infrastructure for their staff and fleet vehicles. If a taxi firm operates as a small business and meets these criteria, they can benefit from this grant to support their transition to electric cars.
However, the Plug-in Taxi Grant (PiTG) might be more relevant if a taxi firm looks specifically for grants related to taxi operations. The PiTG is designed for purpose-built taxis and offers a discount on the purchase price of eligible vehicles, but it does not cover charging infrastructure costs.
This is, of course, referring to the London Taxi – represented by the LEVC TX, which costs in the region of £70K - this outlay is cost-prohibitive for a min-cab firm. The ROI model just won't stack up. However, there is a workaround in the form of the Nissan e-NV200 Combi or the Vauxhall Vivaro-e Life. Both these cars (at the time of writing) are eligible for the grant, so at least you know which manufacturer to approach.
Due to the possibility of policy change, we strongly recommend seeking the most up-to-date information via the link below, refreshing whilst doing so:
The most immediate and substantial benefit of EVs is the significant reduction in fuel costs. Our partners at Fuelmate Ltd have reported that EV fleets can save up to £0.08 per mile compared to ICE vehicles. For a taxi covering the average annual distance of 45,500 km (as per FREE NOW data), this translates to potential savings of over £2,200 per year per vehicle. Fuelmate's discounts on EV charging further amplify these savings, making the switch to electric even more attractive for fleet operators.
Fuel Cost Comparison:
Vehicle Type Fuel Cost per Mile
EV £0.03 – £0.05
ICE £0.12 – £0.20
EVs have fewer moving parts than ICE vehicles, resulting in lower maintenance costs, with the absence of oil changes, timing belts, and other ICE-specific maintenance items, leading to substantial savings over the vehicle's lifetime. The average cost for a full service of an EV is around £143.75, compared to £174.23 for an ICE vehicle - representing a 17.5% saving...
Below is a basic comparison between the two power trains and the costs of keeping them in fettle.
Maintenance Cost Comparison:
Vehicle Type Annual Maintenance Costs
EV £500–£1,200
ICE £1,500–£2,500
Insurance Advantages: Taveo's EV-Friendly Approach
Our insurance partner, Taveo, has recognised the unique benefits of EVs and offers additional discounts for EV fleets. Their AI-powered system considers EVs' lower risk profile, translating into more competitive premiums. Taveo's flexible policies allow for easy integration of EVs into existing fleets, ensuring a smooth transition as you gradually electrify your taxi service.
Clever Tech: Regenerative Braking Technology
Range Extension: This alone can recover up to 60 to 70% of the kinetic energy during braking, which is then stored in the battery, improving the vehicle's range efficiency and reducing the need for frequent recharging.
Reduced Brake Wear: Using the electric motor to slow the vehicle, regenerative braking reduces the need for traditional friction braking, extending the lifespan of brake pads and discs. This leads to lower maintenance costs over time.
Environmental Benefits: Regenerative braking supports the environmental advantages of EVs by reducing energy consumption and emissions, aligning with eco-friendly initiatives in urban areas. This increases overall efficiency, particularly in stop-and-go city traffic, which is typical of taxi operations.
Lower Emissions: Improves air quality, potentially reducing congestion charges in certain cities, and appeals to an evermore eco-centric society.
A study by Trinity College Dublin found that fully electrifying a taxi fleet could result in a 77% decrease in carbon dioxide emissions. This significant reduction benefits the environment and favours your fleet in an increasingly eco-conscious market. Additionally, EVs reduce carbon emissions to 0.03 tonnes of CO2e per vehicle, compared to 0.09 tonnes for ICE vehicles.
While the initial investment in EVs may be higher, the long-term benefits in fuel savings, reduced maintenance costs, and insurance advantages make them an increasingly attractive option for taxi fleets. With partners like Fuelmate offering discounts on charging and Taveo providing EV-friendly insurance policies, the transition to electric has never been more appealing.
So, EVs may have higher upfront costs but offer substantial long-term savings and environmental benefits, making them an excellent choice for taxi fleets. By considering the total cost of ownership and leveraging incentives and partnerships, taxi operators can unlock significant advantages by transitioning to electric vehicles – but it pays to do the research, and we hope we’ve aided the decision process in this (albeit long) article!
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Footnote
All data and statistics mentioned are based on available information at the time of writing and may be subject to change. The information provided is for general guidance only and should not be considered professional advice. Please consult relevant experts before making any decisions based on the content of this article.