The cost and availability barriers of electric vehicles can limit access for carpool and food delivery drivers, as well as small business owners whose fleets may travel a small number of miles on the road. But at least one fintech company thinks it has the answer.
Launch of the Spring Free EV EVInstaFleet this week, a less restrictive funding structure, he says, that will allow more drivers to lease electric vehicles, and without the typical mileage limitations.
Although falling battery costs and government subsidies are closing the sticker gap between electric vehicles and comparable gas-powered cars, and that gap is expected to shrink further — especially if Congress passes the proposed incentives — getting into a vehicle purchased electricity can be more expensive initially.
Electric vehicles have a list price that is 25 to 30% higher on average than comparable gasoline-powered vehicles. Ultimately, EV drivers save more of the total cost over the life of the car when they consider maintenance and repairs, fuel costs and depreciation, according to consumer reports.
EVInstaFleet connects drivers to rentals and secures financing in one step. This contrasts with most current financing options which can take up to six months and require personal guarantees. For a small business, that could mean a second mortgage on a home, getting into debt, or asking for help from family and friends. EVInstaFleet uses a pay-per-mile subscription model, charging customers a base monthly fee plus a fee per mile flown.
Most leases limit the number of miles before an additional fee is charged, creating challenges for high mileage drivers at ridesharing, ridesharing, last mile delivery, and rental fleet companies like Turo , Getaround, HyreCar, Uber UBER,
Gopuff and Lyft LYFT,
to find a suitable financing solution.
“EVInstaFleet is democratizing access to electric vehicles and opening the door for electric vehicle entrepreneurs developing small businesses using electric vehicles as economic assets,” said Sunil Paul, CEO and co-founder of Spring Free EV.
“Most of our clients are immigrants and people of color who have been underserved by traditional auto-funding models,” Paul added.
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Paul comes to this market with experience in the ridesharing industry. And it has teamed up with Martin Lagod, an early investor in solar, battery materials and the food supply chain, to make the market for electric vehicles fairer, they say.
The launch of EVInstaFleet’ followed a partnership with Cox Automotive, which will supply used cars, and HyreCar, which will help Spring Free EV connect with more electric vehicle drivers operating carpools, carpools, rentals, taxis, on-demand deliveries and public works.
There are already signs that the ridesharing and rental industries have become aware of a growing preference for electric vehicles among drivers and cyclists. Uber announced in 2020 that it would provide $800 million in support to help “hundreds of thousands of drivers” worldwide switch to electric vehicles by 2025. Lyft’s Flexdrive unit is working with select car dealerships premises, initially in Seattle, Atlanta and Denver, to rent vehicles on a weekly or long-term basis. In China, considered the world’s largest electric vehicle market, EVCARD, a Shanghai-based electric car-sharing company, has been operational since 2017.
The Biden administration has said it will put the United States on track to halve emissions from burning gasoline and other fuels by 2030 and to net zero by 2050 , a goal consistent with most of the world’s largest nations. Biden and the private sector are bolstering charging infrastructure, and more electric vehicle models are hitting the market all the time.
Market tracker LMC Automotive expects electric vehicles to represent 34.2% of new vehicle sales in the United States by 2030. Electric vehicles, including plug-in hybrids, accounted for only about 4 % of total US vehicle sales in 2021. Yet that doubled in just one year. earlier.