This South African car hire company offers EV rentals only

Drive Electric is a boutique car rental company focused exclusively on electric car rentals in Cape Town and Johannesburg.

The company recently added the 40th electric vehicle to its fleet, which exclusively comprised Mini Cooper Electrics when Drive Electric was founded in 2022 but now includes BMW iX3s and Volvo XC40s as well.

“We started out catering mainly for foreigners who had already adopted electric technology in their home countries who wanted an EV for exploring Cape Town,” said Chris O’Connor, co-founder and CEO of Drive Electric, in an interview with TechCentral.

The charging infrastructure is increasing rapidly and there are more and more fast-charging stations

“We launched with the Minis because they had quite close price parity with internal combustion engine cars. While we offer a premium service and a premium drive, we didn’t want customers to have a premium price.”

Drive Electric offers short-term rentals on a no-deposit basis, charging clients only the daily rate. Clients receive their vehicles fully charged, with around 350km of range available, depending on the car – any additional charging is free for the customer through Drive Electric’s network partners.

O’Connor said after the Minis, the BMW iX3s were added to Drive Electric’s fleet to give customers more options. But the Volvo XC40s have become the most popular vehicles since their introduction due to their range, versatility and the colour options available.

Mass adoption

Most of Drive Electric’s clients take up two- or three-day rentals and drive less than 100km a day, so additional charging is not usually necessary. Despite this, there are occasions where a customer does not quite plan their trip properly or a charging station they planned to use is out of order, leaving them stranded. In such cases, all of Drive Electric’s vehicles can be charged using a three-pronged socket via a household outlet, although this method is tedious. Alternatively, customers can ask for a fully charged replacement vehicle to be sent to their location at an additional charge.

“The charging infrastructure is increasing rapidly and there are more and more fast-charging stations. The Garden Route and the N1 are full of decent fast chargers,” said O’Connor. “Those problems have been ours to bear but I think as EVs reach mass adoption those problems are going to be a thing of the past.”

Read: South Africa’s EV subsidy and tax rebate plan, and what it really means

The EV industry’s growth has created a market of drivers who are “EV curious” but also afraid of jumping knee-deep into a R1-million-plus purchase before they know what they are getting themselves into. Drive Electric offers such customers a monthly rental option with a seven-day cancellation period, allowing them to experience an electric vehicle and the adjustments they would need to make to their lives if they owned one – prior to making a long-term commitment.

Another factor that has fuelled local demand for Drive Electric’s EVs is the growth of industries adjacent to them, including the renewable energy sector. Local executives and sales teams from renewable energy companies now use electric vehicles in their displays, awareness drives or to make a statement when arriving at a meeting, said O’Connor.

Drive Electric’s Chris O’Connor. Image supplied

Compared to traditional car hire businesses that lease petrol-powered cars, Drive Electric focuses on providing a more bespoke service for its clients. There is a 24-hour WhatsApp call centre for customers to use for any queries or questions they may have. Remote access to vehicle metrics and charging functionality allows Drive Electric to send warnings if battery charge is low and assist clients by facilitating the charging process remotely should they struggle at a charging station.

President Cyril Ramaphosa’s recent announcement that government is considering subsidies and tax rebates to help drive EV sales in South Africa is a positive for companies like Drive Electric, whose service remains a niche at current adoption levels.

“The more EVs are talked about in the media in a positive light, the more people will understand that it is not an alien technology but something they could use for themselves. When you have your first instance of plugging in and charging, you realise it’s not complicated, it’s just like a cellphone. Then renting an electric won’t seem like an extreme option,” said O’Connor. – © 2024 NewsCentral Media

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