Madrid-based Cabify, a ride-sharing company that focuses on providing individual and corporate transportation options, announced on Monday, December 19, that it has received a loan of €40M from the European Investment Bank (EIB).
The loan will help the Spanish company to decarbonise its fleet of vehicles in Spain by increasing the availability of new electric vehicles and charging infrastructure across the country.
For this project, Cabify mentions that it will carry out a total investment of around €82M and will reach its next milestone in Q1/2023 with a request for proposals for the procurement of cars and the establishment of the charging infrastructure.
The project is financed under the Future Mobility product, backed by the Connecting Europe Facility (CEF). The CEF is a tool for EU funding intended to increase competitiveness, growth, and jobs through focused infrastructure investments at the European level. The EIB executes the CEF Debt Instrument (CEF DI), a risk-sharing tool that specifically addresses the transportation and energy sectors, in addition to the CEF grants controlled by the European Commission. CEF grants and CEF DI may be combined where necessary to support projects.
Capital utilisation
Cabify says that the funds will help deploy 1,400 electric cars (EVs) for ride-hailing activity in Spain and related EV charging (EVC) and digital infrastructure.
The funding also helps the EU achieve its goals, which include phasing out CO2-emitting vehicles from urban transportation, encouraging a modal shift to cleaner modes of transportation to ease traffic and pollution in cities, and putting EU air quality regulations into effect.
In addition, the project is anticipated to save an average of 9 kilotons of CO2 emissions per year over the project evaluation period by substituting electric vehicles (EVs) for conventional vehicles that use fossil fuels.
European Commissioner for Transport, Adina Vălean, adds, “With this loan, we are supporting Cabify as it deploys 1,400 electric vehicles and the accompanying charging infrastructure. Every forward-looking initiative like this counts as we work towards our Sustainable and Smart Mobility Strategy milestone of having at least 30 million zero-emission cars on our roads by 2030. With this date approaching rapidly, we remain very much committed to accelerating the transition towards sustainable mobility.”
Making cities a better place to live
Founded in 2011 by Juan de Antonio Rubio, Cabify is a multi-mobility platform that connects private users and companies with the means of transport that suit their needs.
Juan de Antonio says, “At Cabify, we are committed to accelerating the green transition in urban mobility in every market we operate. This is our core, making cities better places to live, and sustainable mobility is key for that to happen. The decarbonisation of our fleet in Spain plays a central role in this commitment.”
Through its digital platform and smartphone application, Cabify runs its ride-hailing service, matching demand for trips with the supply of for-hire automobiles. Users can communicate with their driver and get information on the waiting line, the route’s length, and the precise cost of the journey using the mobile app.
Besides, Cabify is also a member of the UN Global Compact and stands out for its commitment to talent and the local ecosystem, generating high-value jobs and declaring 100 per cent of its activity in each country. In 2018, the company became the first carbon-neutral platform in its sector and since then it has been globally offsetting its emissions and those of its passengers and meets an annual reduction commitment.
Cabify has more than 42 million registered users and 1.2 million collaborating drivers and taxi drivers. The company spread, within a few months, to Latin America and is currently operational in Argentina, Chile, Colombia, Ecuador, Spain, Mexico, Peru, and Uruguay.
How is EIB supporting sustainable transport?
In order to increase the availability of emission-free urban transportation in the Spanish cities where Cabify operates, the EIB is investing in the automotive sector and in essential charging infrastructure.
In 2016, the EIB and the European Commission launched the Cleaner Transport Facility with an aim to boost cleaner transportation vehicles and construct essential infrastructures such as refuelling and charging stations. Under this initiative, the Bank funded the construction of 15,000 electric and hybrid cars, eco-friendly buses in France and the Netherlands, and tens of thousands of EV charging stations in Italy, Spain, and Slovakia.
Besides, individual initiatives that promote more accessible, safer, and environmentally friendly transportation are also supported by the EIB. In Africa, Asia, and Latin America, the Bank has assisted with the integration and decarbonisation of transportation.
Brief about EIB
The European Investment Bank is the long-term lending institution of the European Union owned by its Member States. It loans investments that contribute towards EU policy goals. Currently, it is active in 160 countries and is the world’s largest multilateral lender for climate action projects.
Since the member nations own the majority of the bank’s shares – the Netherlands holds just over 5 per cent – the bank is able to obtain highly attractive interest rates on capital market borrowings. For instance, EIB provides long-term financing for sound investments in order to support EU policy objectives. Infrastructure, innovation, climate and environment, and small and medium-sized enterprises are the bank’s four top priority areas for project funding.
The EIB provided somewhat more than €2B in funding last year for initiatives in the Netherlands, healthcare, SMEs, and energy conservation.
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