Zeelo will guarantee what it says are “minimum-value, long-term contracts” to operators in the UK that engage with its commitment to switch all vehicles used on Zeelo’s behalf in developed markets to net zero-emission by 2030.
It says that contracts with operators will be supported by partnerships with vehicle OEMs and importers, and charging and finance companies, to help the transition. Zeelo services in emerging markets will undertake the same shift by 2035.
In confirming further details of how it plans to place work for zero-emission vehicles, Zeelo estimates “that the average contract length will be at least two years, with a minimum one-year contract and a range between one-five years for EV fleets.” A spokesperson adds: “We expect the average annual contract value to be in the region of £500,000. That is around 15-20% higher than an average annual contract for Euro VI vehicles.”
Zeelo adds that its corporate clients and 5% of the UK’s independent schools are willing to invest in zero-emission as part of their carbon reduction targets. The supplier will support operators that sign up to its pledge “to both source and be able to fund the cost of purchasing EVs, and related equipment, within the timeframe.” Such a shift towards net zero emission is a key part of Zeelo’s 2022 environmental, social and governance policy.
Zeelo currently is carbon neutral as it offsets all such emissions from its journeys – including positioning moves – through a partnership with Climate Partner. But that “is not enough,” says CEO Sam Ryan.
Mr Ryan adds that a shift to shared mobility already represents a 78% reduction in carbon emissions per traveller per km. He points out that if the coaches and buses used on that shared mobility then transition to zero-emission, savings can become even more significant.
Zeelo works with over 200 family-owned coach and bus operators globally to deliver services for private clients. It says that revenues between March 2020 and this month have increased ten-fold.