Fintech startup Spring Free EV and Cox Automotive have teamed up to provide used electric vehicles to small businesses through a new subscription program.
Fintech startup Spring Free EV and Cox Automotive have teamed up to provide used electric vehicles to small businesses through a new subscription program, the two companies announced Thursday.
According to Sunil Paul, CEO and co-founder of San Francisco-based Spring Free EV, business owners can switch their fleets from gas-powered vehicles to electric vehicles at a lower cost, by paying per-mile usage fees and modest monthly fees.
“The biggest problem with EVs is that they cost too much, especially up front, compared to gasoline-powered cars, even though the cost of running EVs is much lower,” said Paul, a serial entrepreneur who co-founded the transportation services company Sidecar. .
Spring Free EV has vehicle supply deals with Tesla, Nissan and others, Paul said.
Business owners can switch their fleet from gas-powered vehicles to electric vehicles at a lower cost
Atlanta-based Cox, a unit of Cox Enterprises, will handle vehicle acquisition, refurbishment and delivery, while Spring Free EV will handle financial transactions with small and medium businesses.
With Spring Free EV’s “Mileage Purchase Agreement,” there’s no upfront cost, Paul said. The deal works like a subscription, with users required to keep the vehicle for at least one year and a minimum number of miles. A third party owns the vehicles and users have a purchase option.
The initial target audience is business owners ranging from ridesharing to delivery with high mileage vehicle fleets.
Spring Free EV is backed by a number of Silicon Valley entrepreneurs and investors, including LinkedIn co-founder Reid Hoffman and Zynga co-founder Mark Pincus, who have both also invested in Joby Aviation, the electric aerial vehicle startup.
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