Octopus helps Fulham Cab Company become UK’s largest electric taxi fleet
- Octopus Group’s Transport-as-a-Service (TaaS) finance solution used to add 60 new electric taxis to Fulham Cab company fleet
- Fulham Cab Company now operating 180 LEVC TX electric taxis, the largest zero-emissions capable cab fleet in the UK
- Pioneering deal is the first of its kind in the UK taxi market
- 3,000 LEVC TX electric taxis have now been sold since launch
Octopus Group, the London headquartered financial services and energy firm, has today announced that its innovative Transport-as-a-Service (TaaS) finance solution has been used to help Fulham Cabs become the largest operator of electric taxis in the UK.
John Flynn, owner of Fulham Cabs, has been running LEVC’s TX electric taxi since March 2018. The vehicles have proven extremely popular, with 3,000 TX taxis sold since launch and over 2,500 now in operation in London. With fuel savings of around £110 per week for drivers and low running costs, it’s easy to see why Fulham Cab Company is backing electric.
Flynn has grown his fleet to 120 by traditional vehicle funding methods such as contract hire and now, using an innovative and highly flexible Transport-as-a-Service (TaaS) finance solution from Octopus Group, he has added another 60 LEVC TX electric taxis, taking the total to 180.
He is an advocate of the LEVC TX and was keen to swap the remaining TX4 diesel cabs in his fleet for zero-emission capable taxis. The TX features eCity technology, which combines 80 miles of zero-emission pure electric range with the flexibility of a total electrically driven range of 377 miles – made possible thanks to the on-board range-extender.
In addition to savings in fuel and servicing costs, passengers benefit from a comfortable and luxurious cabin capable of seating six people complete with a panoramic roof, onboard wi-fi and charging points for mobile phones and laptops – creating an office environment even when on the move.
John Flynn, owner of Fulham Cab Company, said:
“I first bought LEVC’s TX back in March 2018 and since then I’ve been looking to add more vehicles to my fleet due to the fact they are so popular with both drivers and passengers. I found Octopus’ financing solution to be the ideal way to make this happen due to its flexibility. Ultimately that’s a huge benefit when you’re running the UK’s largest electric taxi fleet.”
The financing solution from Octopus, which was recently named the Innovative New Product of the Year at the Commercial Fleet Awards, is available to a range of commercial fleet operators, not just taxis. It offers improved cash flow by matching repayments to rental income and usage, while also balancing the repayments across the portfolio of vehicles funded, reducing financial volatility and helping budgeting.
In addition to financing, Octopus’ TaaS solution includes real-time fleet data, enabling fleet managers and owners to maximise the operational efficiency of their vehicles. LEVC anticipate this to be a highly popular finance solution for their newly announced light commercial van due for release in Q3 2020.
Daniel Saunders, Investment Director of Octopus, added:
“We’re really proud to partner with John and Fulham Cabs to help him electrify his fleet and become the largest electric taxi operator in the UK. It’s a huge achievement and we desperately need others to go green if we are to meet our wider goals of limiting carbon emissions to net zero by 2050 and improving air quality. Our innovative model is an easy way for forward-thinking fleet operators to switch to zero-emission vehicles and help to power the clean vehicle revolution in Britain.”
Notes to editors:
Transport-as-a-Service (TaaS) from Octopus:
- Delivers a turnkey solution to operators including zero-emission vehicles, charging/fueling infrastructure at depots, and reinforcement of the local energy network to ensure sufficient power capacity is available;
- Provides the option to include maintenance and repair costs, as well as renewable energy supply, battery storage and smart grid optimisation technologies to maximise the sustainable impact of the vehicle fleet;
- Transfers financial risk away from operators by implementing a pay-as-you-drive mechanism whereby operators pay per mile of usage;
- Transport-as-a-Service enables operators to match costs to revenues, securing their operating margin. Once a set usage has been met their contract with Octopus would expire, and they could take ownership of the assets or renew the contract with new vehicles.
- Provides operators with flexibility on the timing of when to replace the vehicles.
The finance scheme has been certified by the Islamic Council for Europe, offering a viable alternative to mainstream funding for drivers of an Islamic faith.
For journalists in their professional capacity only. The value of an investment, and any income from it, can fall as well as rise. Investors may not get back the full amount they invest. Personal opinions may change and should not be seen as advice or a recommendation. We do not offer investment or tax advice. We recommend investors seek professional advice before deciding to invest. Issued by Octopus Investments Limited, which is authorised and regulated by the Financial Conduct Authority. Registered office: 33 Holborn, London, EC1N 2HT. Registered in England and Wales No. 03942880. Issued: October 2019.