Cab companies not yet eager for EVs

Despite all attempts by national and local governments in EU member states to promote electric vehicles (EVs), cab companies are also sticking to their trusty gasoline and diesel vehicles.

Niels Castermans, marketing manager of more than 40 cab companies in the Benelux, together with Abdel van Cab company Cheap Taxi Utrecht and his cab concierges to give us a better view. Interviews with several Dutch and Belgian cab companies show that they are not yet ready for the transition to electric driving. High purchase and charging costs, limited range and charging infrastructure, as well as long charging times (unless fast charging, which is much more expensive) mean that EVs are not currently an attractive alternative for cab companies.

Diesel vehicles favored by cabs in the Netherlands

Melvin, business manager at Amersfoort-based cab company Taxi In Motion, says brands such as Volkswagen, Skoda, Volvo and Mercedes – all diesel models – remain the most cost-effective and comfortable choices for cab drivers. “A colleague of ours recently purchased an electric car, but it only gets 300 to 350 kilometers on a nearly full battery,” Melvin says. “Know that an electric vehicle is not recommended by car manufacturers to charge to 100 percent if you want them to last a bit. And winter drops that 350km range even further due to the use of heating and air conditioning. He has to recharge the electric vehicle three times to get 900 to 1050 kilometers, whereas with our Audi SQ8, a 4-liter 8-cylinder diesel, we drive between 850 and 1050 kilometers after one €110 refueling.”

Purchase costs and fast-charging costs

The cost of charging (fast charging) the electric car for 300 to 350 kilometers is about €51, and to travel 850 to 900 kilometers, the electric car has to pay about €153. This price difference, along with the time lost by recharging, makes electric cars much less attractive for intensive use, especially compared to the Audi, which covers slightly more than the same distance on one tank for €110.

“In addition, an electric car’ s battery deteriorates by about 4 to 6% every year with heavy use, which means its capacity decreases significantly over time,” Melvin continued. “After seven years, you often have to replace the battery, which is a pricey procedure. That’s why most manufacturers only offer a six- to seven-year battery warranty. Moreover, there are still many teething problems in the technology of new electric cars, they are not yet proven long-term for intensive use, and the purchase cost is a lot higher than that of traditional diesel cars.”

Cab vans not comfortable and cost-effective enough according to Taxi Bob Enschede

Rebin, cab driver at Cab Enschede Bob, emphasizes that diesel cars such as the Volkswagen Passat Station R-Line 2.0 TDI and cab vans Mercedes Vito and V-Class are still the best choice for comfort and long-term economy. “Electric vehicles, while quieter, do not yet achieve the same level of comfort and cost savings as diesels.”

Automakers reconsider EV strategies

The reluctance of cab companies to switch to electric vehicles reflects some broader trends in the auto market. European automakers such as BMW and Volkswagen have expressed concern about falling demand for EVs. Stagnation in sales will make it difficult for these companies to meet the EU’s tougher 2025 CO2 targets, resulting in risks of fines.

Toyota in Japan also lowered its EV production target from 1.5 million to 1 million vehicles, indicating global uncertainty about demand for all-electric cars. In the United States earlier this year, Goldman Sachs predicted a decline in demand for all-electric vehicles, while demand for plug-in hybrids is increasing because of their cost-effectiveness. More and more European manufacturers are turning to hybrids as an alternative to all-electric vehicles.

Range and cost remain issues

One of the biggest objections to electric vehicles is their limited range, especially on longer trips and in cold weather conditions. Many drivers complain about lost time charging and the relatively high cost of fast charging at busy locations. Although the network of charging points in the Netherlands is growing, it often remains inadequate for intensive use, such as in the cab industry. “To drive a 1,000-kilometer trip, you have to charge three times,” says one driver. “And that’s without the extra time and cost it entails.”

Diesel cars, as well as gasoline cars, also remain favorites in Belgium

In Belgium, diesel and gasoline vehicles also remain preferred by cab companies. Cab Service Hasselt reports that diesel models such as the Mercedes V-Class and Vito are especially popular for larger-scale transportation. Hybrid vehicles such as the Toyota Camry and Toyota Proace are also increasingly being used, but diesel and gasoline remain dominant. Fully electric cars are not yet a choice, even despite tax breaks for Belgian companies.

The price differences between diesel and gasoline are smaller in Belgium than in the Netherlands, providing more diversity in vehicle choice. Still, the longevity of diesel vehicles is an important factor. “The Mercedes Vito can often run between 300,000 and 600,000 kilometers without major problems, and that is crucial for cab drivers who travel more than 80,000 kilometers annually,” says a spokesperson. The latest electric cars have yet to prove themselves in terms of durability and reliability.

European Union also refused Chinese offer in early October

Recently, the European Union refused an offer from China to import electric vehicles for 30,000 euros, fearing distortion of the European market and unfair competition. This decision means that cheaper electric vehicles will not become widely available for the time being, making the switch to EVs even less attractive for many cab companies. For consumers in Europe, this means that electric vehicles will not drop significantly in price in the coming years either, keeping the financial barrier high for both individuals and businesses.

Also bleak future for EV adoption, but not hybrid cars

👉 For most cab companies in the Netherlands and Belgium, gasoline and diesel vehicles remain the most comfortable, reliable and cost-effective choices for the time being. Car manufacturers such as BMW, Volkswagen and Toyota are reconsidering their EV strategies now that demand for all-electric vehicles is disappointing. The high cost, limited range and time wasted on recharging make EVs not yet attractive enough for intensive use, such as in the cab industry.

Hybrid models, on the other hand, are becoming more common because they do not suffer from the same problems as fully electric vehicles. Although their purchase price is slightly higher, plug-ins offer the benefit of a quieter ride and meet stricter nitrogen standards, making them a more attractive alternative for cab companies considering making their fleets more sustainable.

Further Interesting: Are you involved in a traffic accident or need legal advice on traffic law? Attorney Paul Deckers offers expert help and guidance on traffic law issues and ensures that your rights are optimally protected.

Source, Media Contact: Niels Castermans, Manager SilverLine Studio, Google marketing for cab and transport companies: web design, SEO and PR.
M: +32 487 24 75 52 | E: contact@silverlinestudio.eu

Participating cab companies: Ilyass S. from Taxi Gent 222, Melvin V.D. from Taxi In Motion, Rebin from Taxi Bob Enschede, Ghazala from Taxi Service Hasselt, Ride4You, Abdel from Cheap Taxi Utrecht, Moos from Taxi Arnhem De Veluwe, Paul from ADVOGenk