LATE TO JOIN THE ROAD TO NET ZERO? IT’S TIME TO PUT YOUR FOOT DOWN
Compared to most other sectors in which I consult, the taxi and PH industry has been notoriously slow in embracing EVs, the majority opting to stick with CAZ-compliant petrol, diesel and hybrid cars. Several factors contribute to the reluctance of this industry to embrace EVs over hybrids.
No. 1 - is charging, operations management and infrastructure.
The disruptive influence charging may have on some commercial fleet operations means many companies mistakenly avoid or delay this #1 challenge to EV uptake.
AN OPPORTUNITY TOO GOOD TO BE MISSED?
Despite the inevitability of electrification, EV avoidance and delay, may inadvertently, be seen as the lesser of two evils. Many fleet owners are really missing a trick here. Despite being a major challenge for some, for others charging management and infrastructure is a once-in-a-generation opportunity.
Without a detailed assessment, and strategic plan, some fleets are oblivious to the potential market advantages and extra profit and revenue streams they may generate. Opportunities are being lost to those with an appetite for change, willing to invest in a structured EV plan to emerge stronger and fitter for the future. PH and taxi businesses need to decide which business model(s) will set them up for a successful future.
YOUR CHOICE
Go electric with a plan and a clear view ahead to create a market advantage. Or choose to hang on.
Investing in compliant petrol, diesel and hybrid vehicles risks allowing, EV advances, increased costs, consumer preferences and competitors to compromise your market position leaving you vulnerable and with a declining acquisition value.
TWO ‘PRECEDENTS’:
One serves as a warning to fleets not yet planning an EV strategy. The other - the ‘unprecedented’ potential revenue and growth opportunity a shift to electric brings - if managed right.
1. Legislation changes – that can change
• New ICE car sales were to be banned in 2040. Yet, in November 2020, the Government brought this forward ten years to 2030.
This precedent proves policies can be volatile, when the ‘market force’ behind decisions, is the future of our planet.
• I think it likely that the 2035 ban date for hybrids will be brought forward to at least 2030 and further policies will increasingly make ICE ownership more difficult.
2. An ‘Unprecedented’ Opportunity: Unstoppable Transport and Energy Market Forces
Tesla market Valuation and EV Domination
• Tesla launched a repurposed Lotus Elise - the Tesla Sportster EV in 2008. Just 14 years on, 2022, and Tesla is now valued at $1Tillion+ that’s more than double ALL other existing motor manufacturers – combined. The rest of the car industry
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may well be wondering: How did that happen? All playing a game of catch-up, they are unlikely to realise, because they didn’t respond quickly enough.
TESLA’S MODEL: BE AWARE OF IT, AND WHY IT SUCCEEDED
Tesla, Elon Musk says, is not a game-changing automotive company, but rather a series of game-changing start-ups. Musk stated that: “There’s probably in excess of a dozen start-ups effectively in Tesla.”
For Tesla to succeed, complimentary services formed part of his business model strategy. Not least Tesla’s Powerwall battery storage systems and most certainly his world-beating ultra- rapid Supercharger network, which made the shift to Tesla’s and electric viable for so many. And while Tesla vehicles are his biggest revenue driver now, Musk has repeated that he expects the business of energy to surpass the income of his automotive division.
HERE’S FOOD FOR THOUGHT…
In the changing landscape of transport, energy, and consumer habits, industries will be redefined, so in that context: Could your company be set to become a mobility retailer of tomorrow?
Over the last decade, petrol station retailers have evolved into ‘forecourt traders.’ From when fuel was their main driver of footfall and revenue, to retail shopping and food and beverage (F&B) being their greatest source of income. Petrol forecourt trading will reach it’s peak and onsite EV charging hubs will be a major part of that as they offer increased dwell time.
LESSONS TO BE LEARNED: MOVING FROM TODAY TO TOMORROW: AND A CONNECTED FUTURE: JOIN THE PARTY!
Disruptive digital platform ecosystems connecting and managing energy and EV drivers to charging locations (which don’t have to be petrol forecourts anymore) will create alternative, competitive, omni-channel opportunities for taxi and PH companies with depots.
These can serve as charging hubs both for their own drivers and others. Energy is a new value chain – Now is not the time to be left behind in this fundamental shift.
I look forward to seeing you to discuss your EV options on our stand - number 50 at the PHTM EXPO 2022.
Article supplied by Tim Scrafton
THE CONNECT CONSULTANCY CONSULT
DESIGN SUPPLY INSTALL
The UK’s leading independent electric vehicle infrastructure consultancy 0161 635 6553
hello@theconnectconsultancy.com
MAY 2022
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