Mercia Fleet Management launches new EV subscription service

Mercia Fleet Management has launched a new electric vehicle (EV) subscription service, Subscribe Electric, to give corporate customers a taste of going electric while meeting short-term vehicle needs.

Mercia FM, the fleet management division of EV salary sacrifice specialist Fleet Evolution, believes that current short term hire costs for EVs are prohibitive, which is making potential customers shy away from making the transition to electric power.

Subscribe Electric aims to provide EVs for short-to-medium term hire – typically three to 12 months – at cost-effective rates compared to those offered by conventional daily rental companies.

Mercia FM says that makes them ideal for new starters on typical probationary periods of up to six months.

Once their probation is completed, for example, they can be then switched to a conventional three-year lease contract, often provided via salary sacrifice, but have several months’ valuable experience of driving a current electric car behind them.

Subscribe Electric cars, available in most makes or models on the market, are also ideal for new short term or seasonal contract wins where a business may need to take on extra staff to satisfy the requirements of a new business win or a seasonal increase to an existing contract, says Mercia FM.

They could also play a key role in helping a conventional fleet transition to electric by providing drivers who are nervous about making the switch the opportunity to try a short-term electric car for themselves.

Andrew Leech, head of Mercia Fleet Management and owner and founder of Fleet Evolution, said that hiring a typical Tesla Model 3 from a conventional daily hire company could cost in the region of £2,000 per month – a level that might deter many prospective corporate customers.

“We can provide the same Tesla for less than half that price per month, making short terms EVs highly attractive from a cost point of view and helping businesses meet their corporate sustainability targets at the same time,” he added.

“Subscribe Electric cars come fully expensed, including all servicing, breakdown, tyres and insurance costs, and requiring only the addition of electricity as and when required. They are ideal for probationers and meeting short term or seasonal contact needs.

“We also feel that this service will be ideal for corporates who want to onboard existing employees to EVs as part of a general fleet policy, but find that drivers are reticent to make the switch from their conventional ICE models in one go.”