This was announced in May of this year, but it was only the first step on a long journey. Cabify, in its strategic plan to electrify its fleet, has approached the European Investment Bank for third-party financing. Now the EIB has given the go-ahead and approved 40 million euros for the spanish unicorn.

In fact, the EIB will take over only half of the project. The remaining 40 million will be borne by Cabify itself. Which, according to Cabify founder Juan de Antonio, they will come out entirely from their bins. “We have enough resources,” he explained to the media.

The purpose of these funds is to accelerate the process of electrification of the Cabify fleet. From now until 2025, the company positions itself as the goal is to have 100% of their cars, at least in Spain, under this umbrella. For the rest of their regions, they expect to achieve the goal in a couple of years.

This is a difficult task, and for several reasons. The situation with the semiconductor crisis does not help to reach acceptable shares in the electric car market. With a higher price and above-average delivery forecasts, Cabify will face a big problem at this stage. Also on the side of the charging stations, a moment that the EIB has also indicated as critical.

However, this will also be difficult internally for Cabify. Of the nearly 80 million euros that will be put into action, the first round will go towards electrifying the company’s own fleet. Almost 1400 vehicles under the auspices of Vecttor –VTC, which the technology company integrated as its own in April 2019–.

Then the task will be to convince the rest of the fleets, in this case external ones, to transform their cars. According to Cabify, their active vehicles have an average lifespan of two years. they will have to try to change the third party business model. There is no data on the status of Cabify’s external fleets. With 85% of Vecttor cars as Eco and 8.3% Eco, they suggest that it has the same structure but worse. In other words, there will be a lot of work on the external fleets, which they plan to articulate through incentives.

In fact, since January, Cabify will launch a tender to bring manufacturers and fleets together on the mission of building a zero-emissions platform.

EIB on the side of the Cabify VTC model

This is an important week for the business model that lives under the umbrella of the VTC model. The system that pass the golden moment following the statement by the European Union Advocate General on the situation in Barcelona.

According to Maciej Špunar, Advocate General of the European Union, the rules that affect the Barcelona metropolitan area limit the activities and number of VTCs. In Shpunar’s opinion, which is not binding but relevant, the rule “violates the freedom of the institution”. The report, in fact, recalls the times of CNMC’s positioning in favor of VTC’s business. A position marked by Cabify and Uber, but they continue to be cautious nonetheless.

The EIB also wants to provide ultimate support for the VTC models. According to Ricardo Mourinho, Vice President of the EIB, “VTC’s business model has competitive advantages, it helps to change transport models to more sustainable systems.” The way to formulate this support is through funding.

Source: Hiper Textual

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