CEFC doubles its backing for rideshare rental scaleup Splend’s EV shift with another $20 million

Australian government-backed Clean Energy Finance Corporation (CEFC) has doubled down on rideshare car rental firm Splend, investing another $20 million in the scaleup to increase its electric vehicles (EVs) fleet.

The fresh cash comes just 13 months after the initial CEFC investment of $20 million in June 2023, which then saw Splend add 500 EVs to double its fleet in less than six months.

The global business was founded in 2015 to offer new cars for rent to rideshare drivers. The CEFC has now invested $40 million in the business. Its other backers include Investec Australia, which tipped in $2.8 million for a 10% stake in 2017, with Element Fleet Management spending $7.2 million for 12.5% 12 months later as Splend expanded internationally.

Splend CEO Chris King said rideshare drivers have the options of an all-inclusive subscription plan with a path to ownership over five years or a short-term rental contract. For example, a $73,000 Polestar 2 would cost $409 a week.

King estimates that a full-time driver could increase their net earnings around $200 a week driving an EV.

“This isn’t just about business; it’s about driving real change for our planet. This investment supercharges our mission to revolutionise the way people own and operate EVs, starting with rideshare,” he said.

“By 2024, we’ll double our EVs on the road. And by 2028, we’re going all-in on electric and aiming to support the transition of at least 25% of all rideshare vehicles to EV.”

CEFC CEO Ian Learmonth said Splend estimates that their drivers travel on average around 1,000 km per week, so the shift to EVs can have a substantial impact on emissions

Industry estimates suggest EV drivers can save up to 70% on fuel and 40% on maintenance costs. A typical car travelling 13,700km annually would save an average of $1000. Splend estimates that a full-time rideshare driver can average up to 60,000km a year.

“The outstanding success of deployment under our initial Splend investment demonstrates strong demand for EVs among rideshare drivers and their customers. It is also a great opportunity to drive further emissions reduction in the hard-to-abate transport sector,” Learmonth said.

“We’re pleased to continue to back Splend in their ambitious approach to reducing emissions – an urgent imperative to work towards our national net zero goals.”