Arabia Taxi Dubai, the UAE’s taxi company, has placed large order for Model 3s electric vehicles (EVs) from Tesla to help reduce the company to cut its carbon footprint.
The demand for Tesla’s EVs has been increasing in the commercial segment with each passing day, particularly from retail consumers as they look forward to cutting operating costs. Furthermore, these orders have been coming from ride-hailing companies and car rental services and Arabia Taxi Dubai is no exception.
According to Arabia Taxi Dubai, the ride-hailing company will buy 269 Tesla Model 3s to become part of its taxi fleet in the Emirates. Arabia Taxi Dubai claims that it has the largest taxi fleet in Dubai and one of the largest in the country. With this new purchase, it looks to double down on that lead.
Arabia Taxi Dubai was established in 2005 with a Taxi Operation Franchise awarded to operate 500 taxis in Dubai initially. Over a period, Additional 271 Taxis franchise rights were awarded in the year 2007 and 155 taxies franchise rights awarded in the year 2013 apart for one Special Needs Taxi.
Besides growing the business, the company’s owner, Sheikh Majid bin Hamad Al Qasimi, hopes to achieve his environmental goals for the company faster than ever.
Arabia Taxi Dubai aims to operate 100% environmentally friendly vehicles by 2027, a segment of vehicles that already account for 83% of the fleet. It should be noted that this includes mild-hybrid and PHEV vehicles. The Sheikh hopes to achieve 100% electrification soon after, potentially paired with hydrogen-fuelled vehicles.
Tesla has been receiving hundreds of orders like Arabia Taxi Dubai as it lures the customers with many offerings to the prospective customers.
Hertz, another popular ride-hailing taxi firm, too placed huge orders to replace its fleet of vehicles with EVs and has reduced its operating costs tremendously.
Besides Hertz, the US-headquartered retail giants Walmart Inc., an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores, and Amazon too have placed large orders for EVs.
In fact, Amazon plans to introduce 10000 EVs in India alone by 2025 and the company, in partnership with EV car maker Rivian, plan to bring thousands of custom electric delivery vehicles to more than 100 cities by the end of this year, and 100,000 by 2030.
Amazon has also added thousands of charging stations at its delivery stations across the US and will continue to invest in building an infrastructure to support a more sustainable delivery fleet. Amazon has also partnered with the nonprofit CERES, and several other fleet operators to launch the Corporate Electric Vehicle Alliance, bringing together companies to accelerate the transition to electric vehicles.
On Its part, Walmart has signed a definitive agreement with Canoo, a high-tech advanced mobility company, to purchase 4,500 all-electric delivery vehicles, beginning with the Lifestyle Delivery Vehicle (LDV), with the option to purchase up to 10,000 units.
The vehicles will be used to deliver online orders in a sustainable way which will also contribute to Walmart’s goal to achieve zero-emissions by 2040. While the LDV is expected to begin hitting the road in 2023, the companies plan to kick off advanced deliveries to refine and finalize vehicle configuration in the Dallas-Fort Worth metroplex in the coming weeks.