Australia’s rideshare will get cleaner cars with the Clean Energy Finance Corporation (CEFC) backing the use of about 500 additional EVs in a $20 million commitment to Splend,
It’s reportedly the first time the CEFC has backed a clean energy solution specifically targeting rideshare drivers, who can cover as much as 60,000km each year.
The CEFC finance will help fast-track Splend’s mission to drive the rideshare industry to zero-emission mobility by enabling Splend to double its EV fleet to about 1000 vehicles by the end of this year.
Rideshare drivers will be able to enter a flexible short- or long-term vehicle subscription contract with Splend to transition to an EV.
In addition to reducing transport emissions, Splend estimates the new EVs will help save drivers up to $100 per week on vehicle fuel and servicing costs.
“Decarbonising Australia’s car fleet and transitioning fleet vehicles to EVs represent an important opportunity to further accelerate the decarbonisation of the transport sector,” says CEFC chief executive Ian Learmonth.
“High kilometre drivers like those in the rideshare services industry can lead the electrification of Australia’s transport sector, which will also require increased investment in our charging infrastructure to meet demand as momentum in the transition to EVs builds,” Learmonth explains.
“Due to the significant distance that rideshare vehicles travel, transitioning this fleet to EVs marks a significant opportunity to cut transport emissions.”
Splend chief executive Chris King says its vision is to lead rideshare to a more sustainable future and deliver more affordable vehicle subscriptions to on-demand drivers.
With more than 100,000 rideshare vehicles across Australia, of which only 1% are EVs, transporting millions of Australians every week, the immediate priority is to focus on the decarbonation of this segment, says King.
“We are delighted to work alongside CEFC as we work to achieve our fleet target of 10,000 EVs by 2024.”
Splend had an initial rollout of 500 EVs in Sydney from Q4 2022 and says it is now the single largest EV operator in Australia.
“Since then, our EVs have travelled over 6.2 million kilometres and saved over 1000 tonnes of CO2 tailpipe emissions,” says Splend.
“As part of the CEFC investment, Splend will share battery performance and secondhand realisation values for vehicles for the finance fleet in Australia.”
CEFC executive director and debt markets head Richard Lovell says with Splend drivers making trips for an average 400 customers per month, the EV uptake for rideshare fleets will have a significant impact in introducing customers to EVs so they can see firsthand the benefits they offer.
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