Image credit: LEVC
According to the mayor of London, an innovative loan per kilometer granted to the electric taxi rental company Colts Cabs is expected to save 116 tonnes of CO2 per year, exceeding the targets set.
The comments follow after the London Mayor’s Energy Efficiency Fund (MEEF) granted a loan to taxi company Colts Cabs Limited (Colts) to finance 30 LEVC TX vehicles through an innovative kilometer payment mechanism and flexible managed by Zeti.
Zeti has developed an innovative financing structure for vehicle rental based on a principle of payment per kilometer measured against the use per kilometer of vehicle fleets. The unique platform called ZERO includes structuring a minimum mileage to protect the lender. The Zeti ZERO software platform has also enabled fleet operators to produce real-time granular data on vehicles and track vehicle location. The facility is repaid once the vehicle has reached the agreed mileage.
London Assembly Member Caroline Pidgeon asked the Mayor of London on more specific details of the deal. Pidgeon asked what guarantees have been put in place by the MEEF so that payments are only made for kilometers driven in electric mode and not when the gasoline engine is used in the taxi.
Sadiq Khan responded: “My Energy Efficiency Fund (MEEF) granted a loan to Colt Cabs Limited to finance 30 taxis capable of zero emissions. This will be monitored by a London-based FinTech start-up, Zeti.
“Prior to investing in this project, the MEEF undertook a technical audit (led by a third-party expert) to ensure that the project will meet the MEEF’s target of saving a ton of CO2 for every £ 7,000 invested. MEEF’s investment in this project should save 116 tonnes of CO2 per year, far exceeding the target.
“The MEEF loan agreement requires the borrower to put in place a measurement and verification plan to ensure that the expected emissions savings are achieved. The costs of running a zero-emission capable taxi are lower in electric mode, which means that drivers are encouraged to drive in electric mode whenever possible.
Colts, a small and medium-sized company based in London, is one of London’s largest black taxi fleet operators, in business since 1991 with more than 800 vehicles. Colts hire black taxis from licensed black cab drivers.
Their current fleet is predominantly diesel and Colts with sister company Fulham Cabs are looking to increase their combined electric fleet to 2,000 vehicles by 2025.