What benefits can SMEs gain by switching to electric vehicles?

What benefits can SMEs gain by switching to electric vehicles?

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Increasing fuel prices is one major concern that we all face in our daily lives. No matter if you’re a bureaucrat, actor, or an ordinary man, the soaring prices of fuel spares none. To make matters worse, we may run out of fuel soon, which means that the fuel prices will keep on increasing in the future too.

In such a scenario, we have limited options. One is to utilize our resources judiciously, which will help us to buy some more time, or to find an alternative energy source.

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If we speak of alternative energy sources then biofuels, solar energy, and electrical energy are the frontrunners. However, biofuels leave carbon footprints and have a high cost of production, and solar power has a high initial cost and is heavily dependent on the weather.

Finally, it leaves us with one option, and that is electrical energy. Moreover, the Electric Vehicle Industry is booming especially with Tesla’s cars breaking all the previous stereotypes about electric vehicles. So, electric cars are a ray of hope for all of us.

But, what it does it means to a SMEs? How can they adopt electric vehicles to boost their sales? What are the advantages that they can gain from electric cars? We‘ll try to answer all those questions in this article.

However, the limousine will always remain an evergreen market that would never go out of fashion. It’s because riding in a limo entails so much more than just riding.

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Electric car is the future

The electric car is the future as it solves all our woes in a single go. Let’s see what the advantages of an electric vehicle for a user are.

No fuel no emission

It’s the environment-free nature of the electric car that attracts most of the users. The electric car, unlike the traditional vehicle, has the minimal carbon footprint. It’s because it doesn’t run on any fuel but, runs on a closed circuit.

Running cost

It’s a common fact that prices of petrol & diesel are unbearable and it may become even more as the time passes. On the contrary, the tariff rate for the electricity is way less as compared to the fuel. So, apart from the environmental factor, it’s also economical.

Low maintenance

Electric vehicles differ from the traditional car as they don’t require expensive maintenance cost. It’s because petrol and diesel engines consist of hundreds of parts which increases the complications and the potential of something going wrong. Whereas, the electric car only has parts less than 20.

Performance

One key aspect in which people were skeptical about electric cars was the performance. Electric vehicles didn’t have a good image as far as the performances are concerned.

However, companies like Tesla have changed that perception entirely. Their latest model Tesla Model S is one of the fastest accelerating cars on the planet as they can reach up to 60mph in 2.5 seconds.

Performance is not only about the speed and acceleration but also about comfort and convenience. Electric cars won’t disappoint you in this too as they are more spacious as compared to the traditional vehicles due to the absence of a large engine.

Moreover, they also provide you with a smoother drive with a low level of noise.

How SMEs can benefit from electric vehicles

We saw many advantages that an electric car offers to the user. But what about the fleet owners?

What about those whose business runs on the car? What effect will electric vehicles have on them? Let’s see Benefits for SMEs

Take advantage of the supports

For SMEs switching to an electric car is an appalling task. However, the evidence shows that it might not be a bad move at all. It’s because of the support that the government provides which could well work in favor of small business taxi management system to cut their initial cost.

For example, the UK government provides grants of £3,500 for EVs (electric vehicle). Similarly, the Workplace Charging Scheme (WCS) contributes £500 in the purchase and installation of each charging connection.

Additionally, the Electric Vehicle Homecharge Scheme (EVHS) contributes up to £500 for the installation of a dedicated home charge point.

Reduce air pollution

One of the major advantages of electric vehicles is that they have minimal carbon footprints. The amount of greenhouse gases released by them is less as compared to the traditional cars.

However, this fact has nothing to do with a company’s bottom line but for a business to grow there are aspects other than profit where they must focus. And being an environmentally friendly firm is one of them.

EV could play a significant role here as it will help in improving the quality local air.

Moreover, the electric car is the future, being an early adopter of this technology would result in huge returns soon.

Moreover, as we saw above that, the UK government is providing significant contributions to the ones who adopt EVs.

Soon you may see other countries coming forward and doing the same. It is a huge possibility considering the state of global warming and the steps that various countries are taking to prevent it.

Read More: How taxi booking app reduces the operational cost?

Lower running cost

The running cost of an electric car fleet is considerably lower than that of a conventional fleet. You will instantly notice the difference in the cost-saving once you have all-electric cars in your fleet.

Powering of an electric car is 90% cheaper as compared to that of conventional cars. Moreover, as the electric cars comprise less mechanical components, the maintenance cost is also 70% less expensive.

All these savings reduce the overall operational costs and increase the profit. So, investing in electric cars not only reduces costs but also improves the overall efficiency.

Additional benefits

Governments of several countries provide a plethora of benefits and incentives for both the drivers as well as the taxi businesses.

For example, in the UK there’s an exemption in:

  • London’s Congestion and T-Charges
  • Vehicle Excise Duty (VED) under £40,000
  • Salary sacrifice regimes
  • Capital allowances

All these benefits together can make a huge difference for a small business. A study conducted by Lex Autolease in 2017 shows us that a fleet of just ten electric cars can save an impressive amount of £14,000 every year.

Switching the fleet to electric vehicles – a success story

You might be thinking that electric cars are a thing of future and has no feasibility as of now. However, that’s not the truth, companies have already started deploying electric vehicles in their fleets and the results are worth looking for.

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SayTaxi is an Albanian taxi fleet company which decided to include the electric car in their business. It’s the first company in its country to do it. It started its operations in 2014; however, the inclusion of electric vehicle was implemented in 2017.

Since then the results have been splendid. They witnessed a 10X increase in the daily requests. Moreover, their 70% of their customers were keen to book an electric car rather than the conventional ones.

The customers are happily surprised when they find out that the car they booked runs on electricity. Moreover, they think that they helped the environment in their way by opting for an electric car instead of a conventional car.

Final takeaways

Whether we’ll run out of fuel by the end of the 21st century or not is a debatable topic. However, one thing is for sure that carbon emissions from the conventional vehicles are a big reason to worry as they are one of the chief contributors of global warming.

In such a scenario, the electric vehicle can be the perfect substitute for the conventional cars. However, it’s still in its nascent stage, but there could be a total turnaround in a matter for 4-5 years.

With fuel prices rising incessantly along with the feeling of saving our environment among us the electric car can well be a regular sight on the roads.

As far as the small and medium businesses are concerned, the inclusion of electric vehicles in the fleet management system can have a tremendous impact on their overall business.

They can gain the benefits of the government’s incentives and subsidies for the electric vehicle and can enjoy low maintenance price of the electric vehicle at the same time.

Moreover, with advancement in the technology, we’ll see the gap between the performances conventional and electric car getting narrower.

So, overall switching your fleet business to the electric vehicle may seem like a bold move; however, the ROI for that move are humungous and worth a try.

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Shahid Mansuri
Shahid Mansuri
Shahid Mansuri Co-founded at Yelowsoft, one of the leading Taxi Booking app development company in 2017. It is known for developing Taxi Dispatch Software of unmatched quality. His visionary leadership and flamboyant management style have yield fruitful results for the company.