EVmo Inc, formerly YayYo Inc (OTC:YAYO), a provider of vehicles to the rideshare and delivery gig economy sector, announced plans Wednesday to acquire a fleet of Tesla (NASDAQ:TSLA) electric vehicles and committed to going all-electric by the end of the year.
The decision to double down on EVs reflects past announcements from companies including Uber Technologies Inc (NYSE:UBER) and Lyft Inc (NASDAQ:LYFT), both of which have pledged to exclusively utilize EVs by 2030. General Motors Company (NYSE:GM) has said it plans to completely phase out vehicles using internal combustion engines by 2035.
“The future of mobility is electric,” EVmo CEO Steven Sanchez said. “Tesla is an obvious choice and we are excited to be one of the first Tesla rideshare fleet partners in the US that will deploy electric vehicles rather than gasoline-powered vehicles, for services like Uber and Lyft. Our EV commitment provides outsized climate benefits. The explosive growth in the gig economy and evidence that it's cannibalizing more climate-friendly mass transit makes it important for EVmo to go all electric”.
READ: Rideshare Rental CEO sells controlling stake to Acuitas Group; chairman Stephen Sanchez to be CEO
Drivers for Uber, Lyft, DoorDash and other services don’t necessarily own electric cars. That’s where renting a car from EVmo comes in.
“We are confident our all-electric fleet will drive a successful business model for the future, becoming the first to exclusively deploy electric vehicles for the gig economy will position us as a leader in the space and is a natural evolution from our mixed energy fleet,” Sanchez added.
“Drivers have given great reviews and are finding the charging easy. Not only did they save money on gas, which is their biggest cost, they received an additional $0.50 directly from a $1.00 rider surcharge for every Uber Green trip completed. Drivers also found that there was sufficient range and ample charging stations in the LA market where the vehicles were launched. And most importantly, it did not limit the number of rides or deliveries.”
EVmo tested the market with Hyundai Kona Electric units, the company said, which offers solid tech and safety features at a price of $10 more a day for drivers. The company has more Kona’s along with 10 Tesla Model 3s scheduled to be delivered in the next few weeks.
“The Tesla Model 3 Standard Range Plus is highest rated in every category,” Sanchez said. “It offers Tesla prestige at a lower price, is most technologically advanced and is best in class on range, performance and handling. Equally important is the Tesla supercharger network access. With a range at 263 miles, Tesla Model 3 makes it affordable and profitable for both the driver and us. The drivers get the benefits of the gas savings; plus, they can drive at a higher level [on] both Uber and Lyft’s platform, where they can earn more money.
As previously announced, EVmo deployed 40 EVs in December as part of a car-sharing program in Los Angeles. Since then, the company acquired 12 EV’s in February and says it found a strong demand for rentals.
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