This first of its kind partnership will provide Glovo couriers with two-wheel electric motorbikes that offer lower cost, clean mobility alternative to the internal combustion engine (ICE).
The firms explained in a statement that the Electric Vehicles (EVs) are provided on a rental or lease-to-own model whilst also offering riders a unique “pay as you ride” or “weekly subscription” to access SSM’s battery swap and charging facilities, technical support and cover for insurance, licensing and routine maintenance services. In order to increase adoption, Swap Station intends to build out a network of solar powered automated quick interchange battery stations along major demand routes and logistics bases starting in Lagos and surrounding states over the next 24 months.
Blackaion Capital and FundCo Capital Managers, who are the co-sponsors of SSM, believe the operational cost of battery swapping per kilometre (km) will remain substantially lower than the fuel cost per km for the ICE counterpart.
Director at Swap Station and Partner at Blackaion Capital, Obiora Okoye, said:“This is the main value driver which has been catalysed by the Federal Government’s near elimination of fuel subsidies. So, the products developed or distributed by Swap Station are designed to exceed the performance of petrol alternatives whilst significantly improving CO2 emissions, local air quality and cost efficiency for users over the life of the asset.”
Okwu Njoku, who sits on the Board went on to say “We are very excited about signing with Glovo, ho operate one of the most prolific food delivery platforms in Nigeria. Our EVs and swappable batteries are in-country and Siltech World, one of our key technology and technical partners, supported us with the procurement, testing and certification of the EVs and so we are now ready to start operations.
“We plan to spend the next few months securing additional swap locations, building our technology platform and expanding our team.”
CEO of FundCo Capital Managers and former Regional Sales Director, Energy, for Tesla, Abiodun Oni, stated: “e-mobility is critical to our sustainable infrastructure investment strategy and this agreement with our partners enables us kick start that process”.
On his part, Head of Operations at Glovo, Ify Adah, stated: “By 2030, our goal is have about half of our orders delivered by non-combustion vehicles. So we are very excited and look forward to working with Swap Station and supporting our couriers with cleaner and more cost[1]effective transport solutions.”
