The rise of the electric taxis market – a game changer
The global push towards electric mobility is gaining momentum, with cities worldwide adopting electric taxis as part of their transportation networks.
The electric taxi market is undergoing rapid transformation, driven by robust growth in electric vehicle (EV) sales and significant investments in infrastructure.
According to the World Economic Forum, cities cover 3% of land on Earth, yet they produce 72% of all global greenhouse gas emissions. Cars are the major contributors of these carbon emissions and have a significant impact on the air quality. It is, therefore, vital to make cities as healthy and safe as possible.
Industry competitors are working together to accelerate the development of more sustainable transport solutions. This is demonstrated by the cell-centric joint venture between Volvo Group and Daimler Trucks to fast-track hydrogen fuel cell technology and bring about a high-performance charging network for battery electric, heavy-duty long-haul trucks and coaches across Europe.
In Oslo, the introduction of the Jaguar I-Pace as a fleet of electric taxis has set a precedent for other cities. This new programme would be the first in the world where inductive charge pads and associated equipment will be placed upon and beneath road surfaces at selected taxi queues, enabling hands-off charging without downtime. Wireless charging will be a game-changer in the electromobility market.
The electric taxi market is set for significant growth, driven by environmental concerns and supportive government policies. Recent reports project a compound annual growth rate (CAGR) of over 15% from 2021 to 2028.
Advancements in battery technology and the expansion of charging infrastructure contribute to this trend. By 2030, cities like London and New York are expected to have a major portion of their taxi fleets as electric vehicles, reflecting the shift towards sustainable urban mobility.
In Greece, Sirec Energy the private equity firm has emerged as a key player in the transition to electric taxis, making significant investments in developing and deploying fast-charging stations exclusively for electric taxis, in collaboration with key players-Ethniki leasing and the FREENOW platform.
Government Initiatives and zero emission zones
Governments worldwide need to adopt zero-emission zones in cities, and national and local policy-makers across the EU need to jointly decide and implement firm plans to regulate urban areas into zero-emission zones. To achieve this, the EU Sustainable and Smart Mobility Strategy set the target of “100 European climate neutral cities by 2030”. And we know just how important not only trucks – but buses, cars, construction equipment and all other forms of city transport – are to make this a reality.
UNEP, together with leading international organizations and in collaboration with partners from the private sector, finance, and academia, has developed a new global programme to support the shift to electric mobility in low—and middle-income countries worldwide.
Incentives such as tax breaks, grants, and subsidies for EV purchases, along with stricter emissions regulations, push the automotive industry towards electric mobility. Cities are also setting ambitious targets for zero-emission transportation, with many planning to phase out internal combustion engine vehicles over the next few decades.
The Greek government prioritises clean urban mobility by providing subsidies sufficient to replace 1,770 taxis with electric ones, amounting to Euro 40 million financed by the Recovery and Resilience fund. This scheme subsidises up to 40% of the value of the vehicle, giving a great incentive to taxi drivers to switch to electric mobility, which will benefit from zero maintenance costs and savings of at least 30% of the total operational costs.