Slide 1. Introduction.
The class develops three cases of taxi drivers switching to electric vehicles for economic reasons, and the implications for fleet management.
Slide 2. Real-life taxi case study: Three real stories of switching to electric vehicles for economic reasons.
- History of electric taxis.
Electric vehicles are ideal for taxis and ride-hailing services due to the type of use they are put to and the advantages offered by zero-emission mobility in urban environments.
Today, it seems extremely avant-garde to see silent taxis in our cities that do not emit a single particle of polluting gas. It is worth noting that this situation already existed in some European capitals more than a century ago, and even in Spain eight decades ago.
There are records of electric taxis in Berlin in 1889, specifically a horse-drawn carriage powered by an electric motor that was used by customers of the Hotel Kaiser. In London, battery-powered vehicles were used as taxis from 1907 onwards. Later, in 1943, a fleet of electric taxis was introduced in Barcelona.
- Personal experience is the best example.
The average daily mileage of a taxi in Spain is between 300 and 400 kilometers, which is equivalent to the range that most current electric vehicles already achieve. All drivers have chargers at their respective homes, allowing them to start their working day with their batteries at 100% capacity.
It is important to note that the average fuel savings exceed 500 euros per month, depending on the number of working days.
More and more professional drivers are making the transition to electric cars for one reason: to save money. This is demonstrated by the cases in Spain of three taxi drivers in Vigo, Barcelona, and Valladolid who have switched from combustion engines to electric motors and have seen their monthly expenses reduced dramatically. In all cases, the economic impact was so evident that there was no turning back. “Gasoline cost me more than the car,” sums up one of them.
In Vigo, Julio Sousa made the decision in 2022, after conducting a financial analysis with his tax advisor. He replaced his old Peugeot diesel vehicle with a Tesla Model 3, financed through a payment plan, and connected the car to a special nighttime electricity rate.
The change in expense management has been remarkable, going from a monthly expenditure of approximately 600 euros on diesel to a current expenditure of just 60 euros on electricity. “The first month, I thought I had made a mistake, that some charge was missing. But no, I simply no longer needed to refuel.” In total, he estimates that he has saved approximately 7,000 euros in one year, which is equivalent to almost three full monthly payments on the vehicle. In addition, they benefit from additional advantages, such as free parking and unlimited access to areas restricted by low-emission regulations.
In the city of Barcelona, taxi driver Ángel García has distinguished himself as a leader in the adoption of electric mobility. For the past five years, he has been driving a 40 kWh Nissan Leaf, with which he has traveled approximately 200 kilometers a day in double shifts.
Although he initially had reservations about the vehicle's range, he soon adapted his charging routines at midday and in the evening, and the results were impressive: while with a hybrid he would spend around 300 euros per month on fuel, his current electricity bill is around $65 per month. “I've saved more than 15,000 euros in five years, and the car is still running perfectly.”
In addition to the savings, Ángel highlights driving comfort as an unexpected improvement. “You arrive less tired, there are no vibrations, the car doesn't make any noise, you're not spending all day pressing the clutch or listening to the engine,” he explains. He also highlights his work as a promoter of electric technology among his colleagues in the sector. "There is a lot of ignorance, but when I show them the figures, their eyes are opened. There are already several of us at the taxi stand who are plugged in."
The longest-running case is that of Roberto San José, a taxi driver in Valladolid and recognized as the pioneer in operating an electric vehicle in Spain. He started out in 2011 with a first-generation Nissan Leaf, at a time when the charging infrastructure did not yet exist. Despite this, Roberto has traveled more than 347,000 kilometers in his electric vehicle, meticulously documenting each refueling in an Excel spreadsheet that he uses in his presentations and interviews. The conclusion of the research is clear: “I have saved more than 32,000 euros compared to a diesel car,”.
Roberto breaks down the savings achieved: in fuel, he would have incurred an expense of approximately 35,394 euros in diesel during that period. In contrast, the cost of electricity was 5,830 euros. To this must be added maintenance, which includes no oil changes, belts, or clutches, and minimal battery degradation after more than ten years. “People are surprised, but the numbers don't lie. The savings are huge. And best of all, it's still working,” he says. He has also given lectures at vocational training institutes to share his experience.
Unfortunately, Roberto experienced an unfortunate incident with his Nissan Leaf, Spain's first electric taxi, which resulted in a total loss. Following the unfortunate incident, the insurance company issued a formal statement classifying the vehicle as a “total loss.” After recovering from the incident, Roberto remained committed to electromobility and currently owns an electric Hyundai Ioniq. After traveling 266,127 kilometers, the Ioniq's battery is in optimal condition, as detailed in a post on his LinkedIn profile.
The three taxi drivers share another characteristic: they all use electricity rates adapted to professional use, recharging mostly at night or during scheduled breaks. Julio, for example, signed up for a rate of 0.05 euros/kWh and always charges in his private parking space. Ángel offers a combination of slow public charging and charging at home. Roberto started out using conventional outlets until the city council installed specific charging points for taxis. “I've never been stranded,” he emphasizes.
Although each has their own brand and model, experience has united them in a common profile: that of the driver who is not chasing green flags, but profitability. Julio, without mincing words, says: “Then you realize that you are also polluting less, and that is an added value. But the first thing was to save money, without a doubt.”
- Implications for fleet management.
The main consequence of switching to electric vehicles is cost savings, especially in terms of energy.
These savings have been achieved mainly for three reasons.
- Because the electricity tariff is adapted to the professional use of the vehicle, it is recharged during lunch breaks and at night.
- The use of slow charging, which is the most economical of all charging methods.
- Having a charging point at home to recharge the vehicle at night.
The purchase cost of the electric vehicle is higher than its internal combustion counterpart, but based on the cost savings in the three cases described, everything indicates that the total cost of ownership (TCO) of the electric vehicle is lower than its internal combustion counterpart.
Some electricity companies offer cheaper or discounted electricity rates, tailored to the schedules of professional drivers such as taxi drivers, which are recommended.
In the case of taxi, ride-hailing, or mobility fleets, where the driver is an employee of the company, the company must pay for the installation of the charging point at the driver's home and the electricity, and allow the driver to take the vehicle home.
Before hiring the driver, you must explain that they will need to recharge the vehicle at their home overnight, and make sure that this is possible, as they may not have a parking space where they can park the vehicle to recharge, or it may not be possible to install a charging point.
If they do not have a parking space to recharge the vehicle at home, they can rent one near where they live with a charger.
The driver is available to provide the service at any time of day, and does not have to travel to our facilities to pick up the vehicle, saving time.
It is recommended that the driver lives in the geographical area where the service is provided, to avoid empty trips from the driver's place of residence to the area where the service is provided.
The driver must be trained on how to recharge the vehicle, always using the slowest recharge mode and at night, and not using public or third-party fast-recharge points.
It is also possible to have a private parking lot where all vehicles can be recharged at night, but this is a more expensive solution than if the driver takes the vehicle home due to the cost of the property, in addition to the difficulty of finding private parking lots for vehicles in city centers.
We will always have a private parking lot where we can keep some vehicles that are inactive for various reasons, but it is much smaller than if we had to recharge all the vehicles at night in the same private parking lot.
Another option instead of having our own private parking lot is to rent parking spaces in a public parking lot with charging points.
Slide 3. Thank you for your time.
The class has developed three cases of taxi driver electrification for economic reasons and the implications for fleet management.
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