Shai Agassi’s startup just announced a deal to electrify one of Tokyo’s big taxi fleets. But like much of their PR, there are very few details — such as exactly how many of those Nihon Kotsu vehicles get replaced? How many battery-switch stations are committed? But I’m an optimist — I hope this proves the economics are sound for expansion of the BetterPlace concept to all the taxi fleets. To satisfy the taxi fleet operators, BetterPlace is taking on a tough challenge. If it works, then the impact on consumer confidence should be very positive.
An excerpt from the PR by Kiyotaka Fujii, President, Better Place Japan & Head of Business Development, Asia Pacific:
In May of this year, we demonstrated the viability of battery switch technology, which can automatically replace a depleted EV battery with a fully-charged one in less time than it takes to fill up a gas tank. Now we are taking the next step.
In partnership with Japan’s largest taxi fleet operator, Nihon Kotsu, and with an award from the Japanese government, we are moving the demonstration into the marketplace. Specifically, as announced two weeks ago, we will be introducing electric vehicle (EV) taxis with battery switch in Tokyo. This initiative highlights one component of our overall solution, which includes ubiquitous networks of charge spots, switch stations, and systems that optimize the driving experience and minimize environmental impact and cost.
Why taxis?
Even though taxis account for only 2% of total passenger vehicles on Japan’s roads, they are responsible for 20% of overall passenger-vehicle emissions. Tokyo’s taxis drive an average of 280 – 300 km (175 – 185 miles) per day – approximately ten times more than a typical Japanese passenger vehicle – which also makes them expensive to operate. Phasing in EV taxis will increase the profitability of taxi businesses by reducing fuel and maintenance costs by over 80%, or 650,000 yen (USD $7,000) per taxi per year.
Without battery switch, an electric taxi would have to stop and charge every 160 km (100 miles). For taxi drivers, every minute waiting for the battery to recharge is a minute that they are not working and not earning money. With battery switch, a depleted battery can be replaced in minutes, minimizing downtime and maximizing revenues.
Once proven in the context of heavily-driven taxis, other drivers will be all the more comfortable buying and driving EVs. They will be reassured that EVs are reliable not just for everyday driving, but also for long-distance trips, with battery switch eliminating delays.
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