EVmo, Inc, formerly YayYo, Inc (OTC:YAYO), a provider of vehicles to the rideshare and delivery gig economy industry, announced March 10 that it will add Tesla vehicles to its fleet and has committed to go all electric by year end of 2021, according to a press release. The company is handling the deal through its wholly-owned subsidiary, Rideshare Car Rentals, LLC.
Steven Sanchez, CEO of EVmo said “The future of mobility is electric. Tesla is an obvious choice and we are 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.
“There are a small number of electric vehicles used by drivers, yet electric vehicle adoption is rising. We recognize that the timing is right to go electric. The environmental and emission reduction benefits are high for electric vehicle usage by gig economy drivers and we want to be a catalyst for that transition.”
In recent media reports, rideshare companies and carmakers are increasing the number of electric vehicles used in the transportation industry. Both Uber and Lyft announced they are going 100% electric vehicles on their platform. General Motors plans to completely phase out vehicles using internal combustion engines by 2035. More than half of GM’s capital spending and product development team will be devoted to electric and electric-autonomous vehicle programs. Ford, VW and Volvo are making a serious play in electric as well. But Tesla is the unparalleled EV market leader in the world that makes the product such an excellent strategic choice, the release stated.
As previously announced, the company deployed 40 electric vehicles (EVs) in December 2020 as part of a car-sharing program in Los Angeles. Since then, it acquired 12 EVs in February, and discovered a strong demand for them. “We were encouraged that they rented quickly,” Sanchez said.
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 50 cents directly from a $1 rider surcharge for every Uber Green trip completed. Drivers also found sufficient range and ample charging stations in the Los Angeles market where the vehicles were launched. And most importantly, it did not limit the number of rides or deliveries.
To diversify its EV fleet, EVmo tested the market with Hyundai Kona Electric units, which offers solid tech and safety features at only $10 more a day for drivers, and more than covered the gas savings, Sanchez said. “By EVmo’s acquisition and deployment of electric vehicles, drivers did not have higher up-front costs compared to them having to purchase EVs. We have 10 Tesla Model 3s and more Hyundai Konas being delivered in the next few weeks and there are plans to establish our EV fleet further through the ordering of more Tesla Model 3s. We plan on using future funding and resources in a way that supports our EV future plans.”
The Tesla Model 3 is the most technologically advanced and best in class on range, performance and handling, the release stated. “Equally important is the Tesla supercharger network access,” Sanchez said. “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 both Uber and Lyft’s platform, where they can earn more money.”