EV ride-hail leasing company Hive raises $30 mln in funding round

iSun

14/12/2021 12:00

By Tina Bellon
    Dec 14 (Reuters) - Electric vehicle leasing startup Hive
Technologies Inc said on Tuesday it closed a $30 million funding
round to expand its fleet for ride-hail drivers who can
otherwise not afford the vehicles' higher upfront costs.
    Backed by environmental, social and governance (ESG)-focused
investors, the company leases EVs to Uber Technologies Inc
 UBER.N  and Lyft Inc  LYFT.O  drivers on a per-mile cost basis
offering a potentially cheaper option than taking out a loan to
buy a new EV.
    "The more you drive, the faster the car payment goes to
zero. So instead of going under the water on a loan, you're
benefiting," Hive Chief Executive Mathias Thomsen said in an
interview with Reuters.
    The company currently only operates with General Motors'
 GM.N  Chevrolet Bolts in California, but is talking to other
automakers to broaden its vehicle line up and plans to expand to
several other states in the coming years, Thomsen said. The
funding will increase Hive's fleet to 1,000 vehicles from 100 at
present.
    Hive's funding round comes as ESG-minded investors pour
money into EV companies, betting on a rapid uptick in EV
adoption over the next few years.
    Uber and Lyft have both promised to run only electric
vehicles on their U.S. ride-hail platforms by 2030, but it is
yet unclear how low-income drivers are expected to finance the
costlier cars.  urn:newsml:reuters.com:*:nL4N2MZ0UF
    Uber and Hertz in October announced a partnership to provide
50,000 Tesla Inc  TSLA.O  rentals to drivers starting at $334 a
week.  urn:newsml:reuters.com:*:nL1N2RN1FR 
    Thomsen said Hive's cars would be significantly cheaper, and
drivers would be able to use solar-powered charging stations
operated by iSun Inc  ISUN.O , which is also an investor in
Hive.
    Hive's vehicles are acquired by Galway Sustainable Capital,
a private-equity backed finance company and investor in Hive.
Even at Hive's lower leasing prices, the business presents
attractive returns, with new EVs being paid off after around
four years, said Galway President Trent Yang.
    "We're taking a bit more risk but we have great confidence
that these EVs will retain real market value," Yang said.
        

 (Reporting by Tina Bellon; editing by Richard Pullin)
 ((Tina.Bellon@thomsonreuters.com; +1 646 573 5029; Reuters
Messaging: tina.bellon.thomsonreuters@reuters.net; Twitter
@TinaBellon))