Mercia Fleet Management hopes that its new electric vehicle (EV) subscription service will encourage more customers to make the transition to electric.
Subscribe Electric is designed to give corporate customers a taste of going electric at affordable prices while meeting short-term vehicle needs. Mercia FM, the fleet management division of EV salary sacrifice specialist Fleet Evolution, believes that current short-term hire costs for EVs are prohibitive, which is making potential customers shy away from making the transition to electric power.
Subscribe Electric will enable the hire of EVs over typically a three to 12-month period at what are described as very cost-effective rates compared to those offered by conventional daily rental companies.
Business Motoring Award Winners 2024
Business Motoring Award Winners 2024
Business Motoring Award Winners 2024
Business Motoring Award Winners 2024
Business Motoring Award Winners 2024
Business Motoring Award Winners 2024
Business Motoring Award Winners 2024
Business Motoring Award Winners 2024
This will, for example enable new starters at a company to choose an EV as their business vehicle while on their typical three or six-month probationary periods.
Once they come through that period, they can be then switched to a conventional three-year lease contract, often provided via salary sacrifice, but have several months’ valuable experience of driving a current electric car behind them.
Mercia FM believes that Subscribe Electric cars will also be ideal for situations in which a company may need to take on extra staff to satisfy the requirements of a new business win or a seasonal increase to an existing contract.
Rather than commit to longer term contract hire leases or more expensive daily rental vehicles, Subscribe Electric gives corporate customers the flexibility to mix and match their vehicle requirements, while at the same time meeting environmental commitments and helping reach corporate sustainability targets.
They could also play a key role in helping a conventional fleet transition to electric by providing drivers who are nervous about making the switch the opportunity to try a short-term electric car for themselves.
Andrew Leech, head of Mercia Fleet Management and owner and founder of Fleet Evolution, said that hiring a typical Tesla Model 3 from a conventional daily hire company could cost in the region of £2,000 per month – a level that might deter many prospective corporate customers.
“We can provide the same Tesla for less than half that price per month, making short-term EVs highly attractive from a cost point of view and helping businesses meet their corporate sustainability targets at the same time,” Leech said.
“Subscribe Electric cars come fully expensed, including all servicing, breakdown, tyres and insurance costs, and requiring only the addition of electricity as and when required. They are ideal for probationers and meeting short term or seasonal contact needs.
“We also feel that this service will be ideal for corporates who want to onboard existing employees to EVs as part of a general fleet policy, but find that drivers are reticent to make the switch from their conventional ICE models in one go.
“By taking a Subscribe Electric car for a three month period, the driver can familiarise themselves with the electric driving experience, including charging, range management and other factors associated with running EVs.
“That may the persuade them that making the transition to full electric is not as daunting or intimidating as they might have imagined.”