EO launches electric bus funding and services solution
EO Charging has launched a new financing and services platform - MOBILITe - to help the bus sector sector to electrify.
Advised by law firm Addleshaw Goddard, and backed by a number of the UK’s largest banks and financial institutions - including HSBC UK - MOBILITe provides vehicle operators in the eBus market with everything they need to go electric, for a fixed monthly cost.
Six in ten (62%) fleet operators cite the significant upfront purchase costs of vehicles and charging infrastructure as one of the biggest barriers to going electric. This is particularly prevalent in the bus market, where it can cost up to £50 million to transition a fleet of 100 buses. MOBILITe is designed to ease this financial burden by providing customers with a tailored solution at a fixed price, helping vehicle operators to reduce financial unknowns and accurately forecast return on investments.
Initially created as a solution for the eBus sector in the UK, EO believes MOBILITe will be also a valuable service for van and truck fleets and could be rolled out to other markets in the coming years.
Keith Watson, Head of eBus and eTruck at EO Charging said: “We know that businesses and local governments want to meet the UK’s net zero goals, but the scale and cost of the electrification projects required present a substantial barrier. That’s why we’ve created this solution - to make it quicker and easier for our customers to access the capital, services, and expertise they need to electrify their fleets.”
Through MOBILITe, EO will be able to offer vehicle-as-a-service, charging-as-a-service, and battery-as-a-service, which will give bus operators the option to lease or procure replacement batteries.
Robert King, Head of Sustainable Finance at HSBC UK said: “Many businesses are looking to move to electric vehicles as part of their plans to reduce their operational emissions, future proof their commercial vehicle fleet and reduce costs. As part of HSBC UK’s commitment to supporting businesses in all transport sectors transition to lower carbon emissions, we are delighted to be shortlisted as a funder to support EO with the roll-out of electric vehicle bus & charging infrastructure”.
EO will handle all negotiations with the financial institutions, manufacturers and service providers, as well as managing the entire process on behalf of the customer throughout mobilisation, installation and the term of the lease.
Paul Dight, Head of Low Carbon Vehicles Group, Addleshaw Goddard said: “The bus sector has particularly challenging electrification and net zero targets, requiring innovation in delivery and funding models for operators to achieve them. MOBILITe removes the hurdle of significant up-front investment costs by spreading them across the asset life. It also offers flexibility - allowing businesses to focus on what they are good at and take everything else as a service, optimising risk and value. These factors will be critical to the speed of adoption for all those converting to low and zero carbon vehicles.”