- EIB is announcing a EUR 40m loan to the Spanish multi-mobility company Cabify, for the EUR 82 million project
- The project is financed under the Future Mobility product, backed by the Connecting Europe Facility (CEF)
- EIB to support the Spanish multi-mobility platform, to enable the reduction of greenhouse gas emissions and pollutants from road transport
The European Investment Bank (EIB) is providing Cabify with a EUR 40 million loan to decarbonize its fleet of vehicles in Spain, by increasing the availability of new electric vehicles and charging infrastructure across the country. For this project, the Spanish multi-mobility company will carry out a total investment of around EUR 82 million.
The EIB loan will mark the cornerstone of the deployment of 1,400 electric vehicles (EVs) for the company's ride-hailing activity in Spain, and associated EV charging (EVC) and digital infrastructure. The investment contributes to EU objectives including - phasing out CO2 emitting cars in urban transport, promoting a modal shift to more sustainable modes to reduce congestion and pollution in cities, and the implementation of EU legislation on air quality.
Moreover, the project is expected to result in 9 kt CO2 average emission-savings per year, over the project assessment period as a result of replacing conventional cars operating on fossil fuels with zero tailpipe emission EVs.
The agreement was signed in Madrid by Alessandro Izzo, Equity, Growth Capital and Project Finance Director at EIB, and Juan de Antonio, CEO of Cabify.
Ricardo Mourinho Félix, European Investment Bank Vice-President said: “Sustainable transport investment means greener infrastructure for a future without fossil fuels. The EIB loan plays a role in supporting Cabify to achieve its decarbonisation target in Spain, as it targets a zero-emission fleet by 2025 in Spain. The EIB is pleased to extend financing to Cabify to decarbonise urban transport via the electrification of car fleets for ride-hailing services in Spain.”
Commissioner for Transport Adina Vălean said: “With this loan, we are supporting Cabify as it deploys 1,400 electric vehicles and the accompanying charging infrastructure. Every forward-looking initiative like this counts as we work towards our Sustainable and Smart Mobility Strategy milestone of having at least 30 million zero-emission cars on our roads by 2030. With this date approaching rapidly, we remain very much committed to accelerating the transition towards sustainable mobility.”
Juan de Antonio, CEO of Cabify said: “At Cabify, we are committed to accelerating the green transition in urban mobility in every market we operate. This is our core, making cities better places to live, and sustainable mobility is key for that to happen. The decarbonization of our fleet in Spain plays a central role in this commitment, and the European Investment Bank's support proves this progress's strategic impact”.
Cabify operates its ride-hailing service using its digital platform and mobile application, which matches demand for trips with supply of for-hire vehicles. Via the mobile app, users can also reach their driver and receive details about waiting queue and trip distance, duration and exact costs of the trip.
The next milestone for the project, which is already in motion, will be in Q1/2023 with a call for tenders for acquiring vehicles and deploying the charging infrastructure. Cabify will look for zero-emission cars with an operating range of over 400 km and technical characteristics and sizes suitable for passenger transport. The company will look for fast chargers with its dedicated infrastructure for the recharging process.
The aim of the project is for Cabify to achieve the objectives set in its Sustainable Business Strategy in terms of decarbonization, which targets that all trips made on the Spanish platform will be in zero-emission vehicles in Spain by 2025 and worldwide by 2030.
EIB support for sustainable transport
The EIB is also investing in the automotive industries and in the necessary charging infrastructure to improve the supply of emission-free urban mobility in the cities where Cabify operates in Spain.
In 2016, the European Investment Bank and the European Commission launched the Cleaner Transport Facility, which aims to promote cleaner transport vehicles and create crucial infrastructure like charging and refuelling facilities. Under the facility, the Bank financed 15 000 electric and hybrid vehicles in several European countries, cleaner buses in France and the Netherlands, and funded the construction of thousands of charging stations for electric vehicles in Italy, Spain and Slovakia.
The European Investment Bank also finances individual projects pushing for greener, safer, and more accessible transport around the world. The Bank has supported the integration and decarbonisation of transport in Africa, Asia, and Latin America.
EIB Advisory Services identified and sourced Cabify as a highly innovative company in the mobility sector. In addition, Cabify benefited from Advisory Services support to prepare the application process for EIB financing.
Contribution to EU sustainable objectives
Innovative shared mobility services play a key role in resolving urban mobility challenges. The development of new technologies has been a key enabler for the development over the past decade of a variety of innovative shared mobility services. Digital technologies in particular, relying on real-time data, make it possible and effective to match travel demands with different transport options with respect to travellers’ preferences in seconds using optimisation tools, data science and artificial intelligence.
The Cabify project contributes to a modal shift towards more sustainable modes for reducing congestion and pollution in cities (2016 EU Low-Emission Mobility Strategy, 2019 European Green Deal, 2020 Sustainable and Smart Mobility Strategy) and the implementation of EU legislation on air quality (Directive 2008/50/EC) by reducing urban transport related air pollution.
The EIB loan supports the Sustainable Development Goals (SDGs), in particular SDG 13 "Climate action", SDG 11 "Sustainable cities and communities" and SDG 3 "Good health and well-being".
Background information:
Cabify is a multi-mobility platform for people and objects that offers various alternatives to reduce urban travel in private cars, taking advantage of technology to make cities better places to live.
And, all of this, while being an economically, environmentally, and socially sustainable company. Cabify, a member of the UN Global Compact, stands out for its commitment to talent and the local ecosystem, generating high-value jobs and declaring 100% of its activity in each country. In 2018 it became the first carbon neutral platform in its sector and since then it has been globally offsetting 100% its emissions and those of its passengers, and meets an annual reduction commitment.
Cabify has been transforming the way people move around the city for 10 years, with more than 42 million registered users and 1.2 million collaborating drivers and taxi drivers. After being born in Madrid, the company spread, within a few months, to Latin America and is currently present in Argentina, Chile, Colombia, Ecuador, Spain, Mexico, Peru, and Uruguay.
The Connecting Europe Facility (CEF) is an EU funding instrument designed to boost growth, jobs and competitiveness through targeted infrastructure investments at European level. In addition to the CEF grants managed by the European Commission, the EIB implements the CEF Debt Instrument (CEF DI), a risk-sharing instrument that notably covers the transport and energy sectors. CEF grants and CEF DI may be combined where necessary to support projects.
The Future Mobility facility is a joint initiative of the European Commission and the EIB established under the Connecting Europe Facility (CEF) Debt Instrument, which aims to support Europe’s decarbonisation agenda, with an emphasis on cleaner, safer and smarter transport solutions. The Future Mobility facility can be partially funded by the NER300 programme established by the European Union.