By Maruisz Zabrocki, UK general manager of Free Now

Maruisz Zabrocki, UK general manager of Free Now

2023 looks set to be the year that electric transport and shared mobility reaches its tipping point.

The latest new car sales figures show that the future of transport and urban and shared mobility is undoubtedly electric. Last year, new car registrations in the UK fell last year to their lowest level in three decades, yet demand for electric vehicles continued to grow and EV sales accounted for almost a fifth of new car sales and for the first time exceeded the sales of diesel vehicles.

At Free Now, currently more than 70% of our UK tours are done with electrified vehicles. The move to EVs has been underpinned by the Government’s ban on the sale of new petrol and diesel cars in the UK by 2030, which would put the UK on course to be the fastest G7 country to decarbonise cars and vans.

The UK is well ahead in EV adoption in comparison with other countries and is leading the way in Europe. Yet, this adoption must be coupled with an improvement in existing EV charging infrastructure. For our drivers, this is imperative to ensure they can continue to support city-goers to travel in a cost-effective and sustainable way.

Driving the shift to EV 

At Free Now, we are committed to reach net zero by 2030 and our drivers are aligned with this vision, with a growing number already driving electrified vehicles. In one of our recent surveys among private hire car drivers, 45% of non-EV drivers said they were interested in EV cars and that they understand these vehicles are a more sustainable option. However, besides the high prices of EVs, 36% of drivers stated their main pain point is the lack of public charging facilities. While we will do our best to support them on this journey, through partnerships and discounts, in order to make this move to EV a reality, more needs to be done to help drivers access and charge their vehicles.

Recently, there have been positive steps taken by local authorities. One such example includes the Mayor of London’s decision to continue to invest in ultra-rapid public charging points on busy London roads for businesses, emergency services, taxis and private hire vehicles. Such infrastructure becomes even more pressing for drivers who need to adapt to the expansion of the Ultra-Low Emission Zone (ULEZ) in August 2023.

The demand for shared mobility

Meanwhile, the decline in new car sales shows it’s clear that the UK population is looking at alternatives to outright private car ownership. At Free Now, we are seeing growing demand for shared mobility. In fact, we saw over 50% growth in taxi and private hire tours and over 200% growth in micro-mobility during 2022.

Research shows that Mobility-as-a-Service (MaaS) revenue is set to increase more than 350% over the next five years. This rapid growth shows that citizens want to be able to travel in a way that suits them, without putting more polluting vehicles on the street. Our recent survey found that more than half of the UK public (aged 18-65) plans to increase its use of sustainable transport in 2023, including electric taxis and private hire vehicles (PHVs), micro-mobility and public transport.

The business case

The decline in private car usage is evident when we look at the rise of employers offering mobility budgets as an added benefit. The decline in the use of company car benefit is coupled with the rise of the employee mobility budget. In fact, a recent Free Now survey revealed that 60% of employees would be more likely to go back to the office if they had a mobility budget.

This new retention strategy is reflective of businesses’ own environmental targets, as well as the need to meet employee demands, many of whom are increasingly sustainability conscious. This is evidenced by recent Free Now for Business research that points access to sustainability-orientated employee benefits as the number one priority of millennials.

Mobility budgets offer employees a way of travelling that suits their own comfort and enjoyment without the added costs and stress of their own car, or the guilt that comes with adding a polluting vehicle to city streets. Using a mobility budget on a multi-mobility app means city-dwellers can choose from black cabs, private hire vehicles and micro-mobility options such as e-bikes or e-scooters.

The route to our sustainable destination: Partnership

As citizens opt for more sustainable and flexible ways to travel, both the decline of private car ownership and the rise in electrified vehicles are shaping the future of UK transportation.

The evolving behaviours of city-dwellers and drivers alike will require greener infrastructure within our cities. As we start the year, we must ensure we prioritise public and private sector collaboration to truly realise the potential of the EV transition and promote sustainable and shared urban mobility.