Challenge
Fruit 4 London, based in Leyton, East London, specialises in the delivery of fresh fruit to offices around the central London area. The company
operates a small fleet of vans and bicycles to transport fresh fruit and other goods to corporate and private clients.
The van fleet is lease-purchased over three years and covers 12,000 miles per annum. Used for multiple journeys between 5am and 11am, the vans are driven by more than one driver and are stationary overnight.
Fruit 4 London wanted to explore whether it would be a good business decision to go 100% electric. Energy Saving Trust’s Plugged-in Fleets Initiative (PIFI) gave them the perfect opportunity to find out, with free analysis and advice from an independent expert.
Recommendations
Energy Saving Trust’s PIFI review demonstrated that there is a good business case for Fruit 4 London to operate electric vehicles (EVs) on their fleet. Our analysis showed that it would cost around £9,000 less to operate a pure electric Renault Kangoo ZE over 36 months compared to a Renault Kangoo Diesel and £16,500 less to operate than the diesel Transit. The whole life cost analysis shows that lower running costs, 100% capital allowances, the plug-in vehicle grant and no congestion charge in London for EVs all add up to make EVs far more cost effective than a diesel equivalent for Fruit 4 London.
These results do not assume an increase in the cost of fuel. A conservative estimate for a 5% fuel cost increase over three years would equate to an increase of £281 for the Kangoo diesel, and £392 for the diesel transit. Compared to the increased fuel bill of £32 for the Kangoo Maxi ZE, the estimated future fuel savings are even greater. Fuel price risk is even more significant for longer periods, say four to five years, and diesel vehicles are far more exposed to it.
Results
Fruit 4 London feels confident that fully electrifying its fleet is going to have significant financial benefits for its business and would work well practically.
After completing the PIFI review, Fruit 4 London lease-purchased a new pure EV and over the medium term, the company aims to replace all of its vehicles with EVs. Longer term the company will purchase more EVs as it continues to expand.
“At Fruit 4 London we aim to find innovative and sustainable solutions to help us improve our operations and provide the best service for our customers. After taking part in Energy Saving Trust’s Plugged-in Fleets Initiative we now know that we can go 100% electric. The review showed us that going electric is the best business decision when expanding our fleet, based on impressive cost savings. Since working with Energy Saving Trust we have taken on our fourth Kangoo ZE and plan to adopt more plug-in vehicles as we grow.”
Laszio Mulato, director, Fruit 4 London