The federal government-financed Clean Energy Finance Corporation (CEFC) is continuing its strategy of backing businesses leading decarbonisation by committing $20 million to Splend, a growth business that leases vehicles to rideshare drivers.
The CEFC finance will enable Splend to double its current Australian fleet of electric vehicles (EVs) to 1,000 by the end of this year.
Rideshare drivers will be able to enter short or long-term contracts to switch to EVs which Splend estimates will help them save up to $100 a week on fuel and servicing costs.
CEFC chief executive Ian Learmonth said: “Decarbonising Australia’s car fleet and transitioning fleet vehicles to EVs represents an important opportunity to further accelerate the decarbonisation of the transport sector, which will also require increased investment in our charging infrastructure to meet demand as momentum in the transition to EVs builds.
“Due to the significant distance that rideshare vehicles travel, transitioning this fleet to EVs marks a significant opportunity to cut transport emissions. This is an exciting change to the way Australians can enjoy the convenience of rideshare services while having a real impact towards achieving zero emissions in our transport sector.”
Splend chief executive Chris King said that of more than 100,000 rideshare vehicles across Australia only 1% were EVs. Converting the Splend fleet – Australia’s largest rideshare fleet – to EVs will make an important contribution to decarbonisation of the rideshare segment. With CEFC’s support, Splend planned to reach 10,000 EVs by 2024.
As part of the CEFC deal, Splend will share battery performance and second-hand realisation values for the EV fleet it finances in Australia. This data will make it easier for other fleet operators and financiers to price operating leases and similar products in the future.
Founded in Sydney in 2015 to finance cars for Uber drivers, Splend now operates in ten Australian cities and has expanded to Europe. Investors have included Investec, Element Fleet Management, Acorn Capital, Partners for Growth and London alternative assets firm Pollen Street Capital which led a $150 million equity and debt funding round for the company’s European expansion last year.
Image: A shift to electric rideshare vehicles will boost demand for charging infrastructure.