Arabia Taxi Dubai recently ordered large quantities of Model 3s from Tesla.
Tesla’s retail consumer pressure is large. Although the automaker has grown in popularity in the commercial space, especially with customers seeking to reduce operating costs and carbon footprints. These orders come from ride-hailing companies and car rental services.
The Emirati company announced that it would buy 269 Tesla Model 3s for its taxi fleet in the UAE. The taxi company claims to have the largest taxi fleet in Dubai and one of the largest in the country. It looks to double down on that lead with this upcoming purchase.
The value of the deal Arabia Taxi inked with Tesla has not been publicly disclosed.
The company’s owner, Sheikh Majid bin Hamad Al Qasimi, also hopes to achieve his environmental goals faster than ever before. Arabia Taxi aims to operate 100% “environmentally friendly vehicles” by 2027, a segment that already accounts for 83% of the fleet. It should be noted that this includes mild-hybrid and PHEV vehicles. The Sheikh hopes to achieve 100% electrification within the next few years, possibly paired with hydrogen-fueled vehicles.
Today’s taxi fleet order is one of the countless fleet orders Tesla has received. However, it should be no surprise that the American automaker’s EV offerings attract sizable commercial interest. According to another fleet customer, Hertz, who has placed a multibillion-dollar order with Tesla, it has benefitted tremendously from dramatically decreased operating costs and the interest of consumers who love using and interacting with Tesla vehicles in particular.
Tesla isn’t the only car maker pouncing on commercial EV demand. Other notable fleet contracts include some of the largest retail giants on the planet. Walmart and Amazon are currently working on switching to electric vehicles rapidly. They work with countless manufacturers, including startups like Canoo and Rivian and more prominent players like Ford and General Motors.
With Tesla poised to increase its offerings, one of the primary customers the leading EV seller will address is commercial fleet buyers. This is most notably by producing electric vans and buses. However, with such sizable investments from legacy makers, Tesla will need to work quickly to introduce its competitor to the market.