Updated: Nov 9, 2021
The Mayor of London’s Energy Efficiency Fund (MEEF) has provided a loan to taxi firm Colts Cabs Limited (Colts) to fund 30 LEVC TX vehicles through an innovative and flexible pay-per-mile mechanism managed by Zeti.
Zeti has developed an innovative financing structure for vehicle leasing based on a pay-per-mile principle measured against the per mile usage of vehicle fleets. The unique platform called ZERO includes structuring a minimum mileage to protect the lender. The Zeti ZERO software platform also allows fleet operators to produce granular real-time vehicle data and to track the vehicle location. The facility is paid off once the vehicle has reached the agreed mileage.
MEEF, managed by Amber Fund Management Limited (Amber), is looking to replicate this finance mechanism with Zeti for further deals in the taxi sector and in other transportation sectors.
Colts, a London based Small Medium Enterprise, is one of London’s largest black cab fleet operators having been in operation since 1991 with over 800 vehicles. Colts rent out the black cabs to individual licensed black cab drivers.
The current fleet is predominately diesel and Colts along with its sister company Fulham Cabs are looking to increase their combined electric fleet to 2,000 vehicles by 2025.
The LEVC TX is a plug-in-hybrid with an electric range of 63 miles capable of rapid charging with a small petrol engine to extend the range of the vehicle. The LEVC TX has a number of advantages over the older diesel black cabs, including reduced maintenance costs and improved fuel economy. Each cab is forecast to reduce carbon emissions by 3.9 tonnes and reduce NOx emissions by 99.5%. Overall, the 30 cabs will save 116 tonnes of CO2 per year, the equivalent of taking over 105 cars off the road.
This project is an important step in tackling London’s air pollution and supports the Mayor of London, Sadiq Khan’s commitment to zero emission transport in the capital.
This is MEEF’s third investment in the low carbon mobility sector. Eligible projects include EV charging, alternative fuel stations and hydrogen fuel cells.
Deputy Mayor for Environment and Energy, Shirley Rodrigues, said: “The Mayor has set the ambitious target of making London net zero carbon by 2030. This project is a great example of how the Mayor of London’s Energy Efficiency Fund is supporting schemes that help deliver this goal, and how London can accelerate climate action through a combination of public and private sector capital investment. At COP26, the Mayor announced a further £30 million for MEEF to support further zero carbon transport and infrastructure projects like this.
“A third of London’s black cabs are now electric, helping to tackle the twin dangers of air pollution and climate change and we are delighted that MEEF is helping more of our black cabs to go green.”
Pete Radford, Director of MEEF, said: “We are delighted that MEEF is supporting Colts
Cabs transition their fleet to zero emissions capable taxis. By working with Zeti and utilising their innovative financing platform, ZERO, MEEF will have access to real time finance and environmental data, demonstrating the impact MEEF is making in improving London’s air quality. With the Mayor recently announcing further funding for MEEF we look forward to continuing to support the Capital’s fleets transition to low carbon vehicles.”
Dan Saunders, Founder & CEO of Zeti, said: “Zeti is revolutionising the financing of transport, focusing on clean and connected vehicle fleets. We’re delighted to be working with the team from MEEF and Amber Infrastructure to accelerate the adoption of zero emission capable mobility in London and support the Mayor’s goal of improving air quality for all of London.”