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+Electric vehicles in the ride-hailing industry (Mexico)
Published: January 1 of 2019
Editor/s: IDB Invest, Cabify and Ernst & Young
Author/s: IDB Invest, Cabify and Ernst & Young
Filename: Download PDF now

Study by IDB Invest, Cabify and Ernst & Young where the general dynamics of the ride-hailing sector (transportation service platforms that use private vehicles) are analyzed and sustainable business models are identified, including new financing technologies, such as fintech, to accelerate the transition to electric mobility. Based on an analysis conducted in Mexico, the lessons of which can be extended to the entire region.
The ride-hailing market amounts to US$60 billion and will reach US$285 billion worldwide by 2030, with an annual growth rate of 14%. Latin America and the Caribbean is one of the key regions for this market, as it is one of the most highly urbanized regions in the world.
Currently, EVs represent an almost non-existent proportion of the automotive fleet in the taxi and ride-hailing service industry in Mexico. The initial acquisition cost of an EV is the main obstacle to affordability for drivers. Furthermore, the lack of charging infrastructure and the limited information on EVs are additional barriers.
The study concludes that the decarbonization of economies is an urgent and necessary challenge. The integration of different technologies and solutions, such as EVs and fintechs, can allow overcoming structural obstacles. In particular, providing support to the drivers is vital to achieving the introduction of EVs into Cabify’s fleet. Ride-hailing companies and fintech companies could be ideal partners, generating important synergies in their joint work.

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