Cardiff drives forward with electric taxi transition

Taxi drivers in Cardiff are being encouraged to participate in a driving needs assessment and find out about an alternative way of securing preferential finance before investing in new electric vehicles.

Helping them on their journey to greener motoring are EVSerious and ZETI, two small to medium sized firms participating in the Local Authority Transport Decarbonisation accelerator delivered by Connected Places Catapult on behalf of the Department for Transport.

Both companies were selected to address one of three challenges in the six-month programme focused on incentivising the take up of electric taxis. After being introduced through the programme, they decided to work together on a trial project with Cardiff Council.

Data and software specialist EVSerious is helping taxi drivers who are thinking of trading in their petrol or diesel vehicle to make the best-informed data-led choice based on factors such as their typical daily / weekly mileage and where they operate. It is inviting taxi drivers to take part in a study analysing their unique driving needs, and to make use of a smartphone app to match drivers to a selection of the most suitable electric vehicles.

The company has teamed up with technology finance firm ZETI, which is helping the council and taxi drivers to understand the potential outcomes of preferential borrowing rates with lenders.

Both companies are working closely with Cardiff Council to convince more taxi drivers of the merits of electric taxis, and to support the local authority’s ambition of increasing the number of electric vehicles operating in the city.

“Taxis are a key part of Cardiff’s transport system, but if we’re going to achieve our carbon neutral ambitions, we need to find innovative ways to support drivers to make the switch to an electric vehicle.”

Cardiff Council Cabinet Member for Climate Change, Strategic Planning and Transport, Dan De’Ath

“There's an appetite for change among taxi drivers in Cardiff to help reduce vehicle emissions, but we're still on a journey with them,” says Cardiff Council’s sustainability, policy and performance manager, Alastair Chapman. “A number of barriers exist around finance and making sure vehicles meet the needs of drivers; so addressing these issues is where ZETI and EVSerious come in.”

Alastair says that because taxis operate in congested environments – and often in between tall buildings with poor air flow – encouraging more drivers to use electric vehicles offers a great opportunity to improve local air quality.

He adds that data provided by the trial could help the council to identify where best to place electric vehicle chargers for communal use. “These are early days, but we are having some positive conversations with taxi groups.”

Helping ensure a wise investment

For many taxi drivers, buying or leasing a new vehicle will be one of the largest investments they make after purchasing a house, says EVSerious co-founder Zac Zachariah. But once they do, many may be surprised in how conventional vehicles and electric alternatives differ.

“The number one thing I hear from drivers who went electric – and which surprised me – is they love how quiet their working environment is now; many hadn't appreciated just how noisy their old diesel engines were. Those who have switched also say their maintenance bills are next to nothing.”

Zac’s company’s offer involves asking taxi drivers to download an app to their smartphone and drive around as normal. The app monitors how their vehicle is used; from the number of trips and mileage completed, to the longest distance travelled for one fare, to where they park overnight to charge.

“We effectively create a personal digital twin of someone's driving habits and analyse that,” he explains. “Once a driver’s typical behaviours are revealed, the app suggests a shortlist of electric vehicles that should best meet their needs.”

“We are giving drivers confidence and a degree of assurance that they are making the right choice of electric vehicle after they make a commitment to invest. Our platform can help any driver, but taxis represent a new use case for us.”

The company is also running a similar pilot with the council, supporting its staff as part of their One Planet programme to help the city become carbon neutral.

Securing preferential finance

Trial partner ZETI’s commercial director Dave Kennon says his company aims to create a fund for taxi drivers who want to adopt lower, near zero or zero emission vehicles. “We have lenders who want access to sustainable transport investments, and who are keen to see whether we can use that approach to help taxi drivers in Cardiff purchase electric vehicles.

“Once we have a critical mass of drivers, we can pull their finance demands together to achieve better rates.”

When a new taxi is purchased, ZETI takes utilisation data and calculates carbon dioxide and nitrogen oxide reductions achieved; providing useful insights for both investors and the city council.

The preferential finance offered “might be the difference between a driver securing a loan or not”, says Dave. “Taxi drivers perform a very important role in the city, so creating a collective fund gives them more of a chance to purchase new vehicles.”

Catapult support welcomed

Both of the SMEs and the council say that joining the accelerator programme has been very worthwhile.

“I’m grateful for the way the programme has brought all of us together,” says Zac of EVSerious. “Through the programme, we are also having contact with professionals providing investment support.”

Dave at ZETI adds: “The accelerator has been great for the contacts we’ve made, such as to a manufacturer of electric vehicles and a venture capitalist. The programme has also helped us to improve the way we communicate what we do.”

Alastair at Cardiff Council says: “None of us knew each other before taking part in the programme. It has been a good experience for us to venture into the SME world of innovation, and particularly around net zero.

“This process has been very much about learning how to procure innovation and how to engage with innovators. The support we've received from the team has been phenomenal.”

Read more about the Local Authority Transport Decarbonisation accelerator.