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Fuel swap from diesel to electricity: Understanding the skepticism towards electric taxis

Can electric taxis potentially outnumber traditional diesel vehicles?

Challenges and reservations persist in embracing e-taxis nationwide. Pictured.
Challenges and reservations persist in embracing e-taxis nationwide. Pictured.

Scochewing Diesel: Electrifying Taxis: Why E-Taxis Still Struggle to Impress

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Struggles of E-taxis: Reasons for Challenges in Transition from Diesel Power - Fuel swap from diesel to electricity: Understanding the skepticism towards electric taxis

The wave of the future has already started swimming in Hamburg: The city requires that only zero-emission taxis be registered there since this year. Is this the blueprint for the southwest? Local taxi drivers have mixed opinions. And the conditions are not as favorable everywhere as in Stuttgart.

How does the new taxi model operate?

Approximately 700 of the 3,000 taxis in Hamburg are electric-powered. Additionally, there are double-digit figures for vehicles using hydrogen. According to the Hanseatic city, this saves thousands of tons of carbon dioxide. Six exclusive fast charging stations with 12 charging points are available at taxi stands.

Only new taxis must be emission-free. However, this rule only applies to large taxis and wheelchair-accessible taxis starting from 2027. Older combustion engines are still allowed on the road. The city assists taxi entrepreneurs in switching to electrical power.

What's going on in Baden-Württemberg?

The vast majority of about 8,000 taxis in the state are powered by diesel or gasoline. To improve air quality, the ecological Ministry of Transport is promoting the swap. A grant of 3,000 euros is available for each electric taxi. The city of Freiburg welcomes the "E-Taxi funding program", but demands an increase in the program's allocation.

A commitment similar to that of Hamburg is not being planned in Baden-Württemberg. The ministry is relying on collaboration with cities that want to increase the electric vehicle quota through incentives. "We will evaluate the results," a spokesperson said.

Minister Winfried Hermann finds "I am proud of every taxi company that offers climate-friendly transport with an electric taxi." Taxis are predestined for the swap because they typically drive in the city and can use idle time and breaks for charging.

So what do taxi drivers in the state really think?

Thomas Laschuk, head of the Taxi Association Germany in Baden-Württemberg, is not in favor of a switch. The electric taxi he tested for a short time was inconvenient. Passengers don't care if they travel in an electric car. "They want a clean vehicle and a driver who speaks German - and they want to get from A to B quickly and cheaply."

Most of the approximately 3,700 taxi companies in the state likely share this view, estimates Nuri Altun. Unlike his colleague in Karlsruhe, the chairman of the Taxi Association Baden-Württemberg - the other industry association based in Stuttgart - supports the move to emission-free taxis. Everyone should contribute something to climate improvement, he decides.

Altun will soon receive an electric vehicle. By the end of the year, he estimates that alone in the state capital, about 50 to 60 of the approximately 760 taxis will be electric-powered.

What's the problem?

Whether electric or hydrogen vehicle: "I've been trying to persuade taxi companies to switch for years," says Altun. Many taxi drivers lack information about electric vehicles. It's difficult to persuade them to get on board with something new. Additionally, there is the problem of charging infrastructure and battery range.

Laschuk estimates: With the diesel taxi, he could drive 1,000 kilometers. With the electric car, he would have trouble making the 150-kilometer trip from Karlsruhe to Frankfurt Airport if the power only lasts that long. "Should I tell them I need to charge first for half an hour? The customers will flip me off," says Laschuk. Building more charging stations does not solve the problem for him. "How many charging stations do we need for 250 taxis in Karlsruhe?"

What are the incentives?

In addition to state funding, some cities are also attempting to encourage a swap. According to Altun, there are three charging stations in the state capital of Stuttgart where taxis can quickly, exclusively, and for free charge. "That's already a great incentive."

The stations are part of the "E-Taxi Action Plan" of the city. The offer aims to make it easier for taxi companies to switch to electric mobility. The location at the taxi stand ensures that the charging points are free, a city spokesperson said.

How does Freiburg handle it?

Freiburg relies on public fast-charging stations like the four pillars with eight charging points at the south entrance of the main station. More public fast-charging stations are planned near a taxi stand in the city center. Freiburg opposes exclusive charging infrastructure for a particular group because it would restrict public space. Taxi entrepreneurs could also charge their vehicles outside of working hours.

In Heilbronn, where electric taxis are already in use, the taxi industry has not yet expressed a need for charging stations from the city. Ideally, the ADAC says, the charging infrastructure should already be planned when purchasing an electric car. "For taxi companies, it could indeed be interesting to have their own charging infrastructure on the company premises," the automobile club said.

To summarize, while cities in Germany are offering some incentives for the switch to electric taxis, significant challenges remain, such as high costs, infrastructure limitations, and operational uncertainties.

Additional Insights

Germany's national policies include accelerated depreciation for electric vehicles and extended tax exemptions until 2035. These measures indirectly benefit taxi fleets if they are incorporated into company fleets[1]. The growth of public charging points across Germany supports the adoption of electric taxis, making charging more accessible[5].

The transition to electric or hydrogen-powered taxis faces challenges such as:

  • Cost and subsidy insufficiency: The cost of electric or hydrogen taxis is higher than traditional models, and current subsidies are often seen as insufficient to cover the transition costs[3].
  • Infrastructure limitations: Even though Germany is expanding its charging infrastructure, there are still gaps in coverage, especially in rural areas, which can limit the operational flexibility of electric taxis[6].
  • High operating costs: High electricity prices in Germany can increase the operating costs of electric taxis, making them less financially competitive compared to traditional models[4][5].
  • Consumer uncertainty: Economic headwinds and consumer uncertainty about the long-term reliability and efficiency of electric or hydrogen models can affect demand and the willingness of taxi drivers to invest in these vehicles[5].
  • The city of Hamburg requires zero-emission taxis to be registered, saving thousands of tons of carbon dioxide, with approximately 700 electric-powered taxis, and double-digit figures for hydrogen-powered vehicles.
  • Baden-Württemberg, with around 8,000 taxis, predominantly uses diesel or gasoline, promoting the swap to improve air quality with a grant of 3,000 euros for each electric taxi.
  • Minister Winfried Hermann praises climate-friendly transport using electric taxis, seeing taxis as ideal for swapping because of city driving and charging opportunities during breaks.
  • Thomas Laschuk, head of the Taxi Association Germany in Baden-Württemberg, is not in favor of the switch due to inconvenience, while Nuri Altun, chairman of the Taxi Association Baden-Württemberg, supports the move to emission-free taxis.
  • The challenges faced in switching to electric taxis include a lack of information, battery range limitations, charging infrastructure problems, and high costs, with current subsidies often seen as insufficient.
  • Cities are offering incentives such as exclusive, free charging at taxi stands, but taxi entrepreneurs also suggest having their own charging infrastructure on company premises.

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