The repetitive waves of the pandemic, out of stock electric vehicles and the overhaul of the taxi industry: the “storm” was “perfect” when Téo’s electric taxis restarted two years ago. The brake did not take long, but its managing director, Frédéric Prégent, prefers to see the glass half full. He wouldn’t do things any other way.
“I would just manage my expectations in relation to the launch,” says the boss of Taxelco, also owner of Taxi Diamond and Taxi Hochelaga, in an interview with The Press. “We made a bet that there weren’t going to be any waves and in the end, there were for two years. »
An example of consequences? The electric company’s 55 Kia Souls were leased to drivers in October 2020. Then, the holiday lockdown came to spoil the party. As of January, the drivers, who are now self-employed and not employees, were handing over vehicles because they could no longer respect their capital lease, says Mr. Prégent.
When asked if green and white taxis are less visible in the city center, which has not yet recovered from the health crisis, the manager does not back down. “Clearly,” he replies, acknowledging that there has been an exodus to the northern and southern suburbs of Montreal. Traditionally, the city’s downtown core was seen as paying for drivers who could rack up rides and each time charge the base price — now set at $3.45.
Electrification is not going as fast as expected at Taxelco, which is owned by businessman and controlling shareholder of Quebecor Pierre Karl Péladeau. This slows Teo’s expansion.
Despite the pitfalls, Mr. Prégent sees the positive. The company is in a “super good financial situation” with an owner with “strong backs”.
“Téo’s application continues to work and it stands out well,” he says. Today, everything is integrated [avec Diamond et Hochelaga]. As a customer, you can decide what type of vehicle you order. We were able to standardize and provide better service. »
A slower turn
Mr. Prégent and his team will however have to be patient. It is not tomorrow the day before that new electric vehicles will swell the ranks of the Téo fleet. Like many individuals, the company is struggling to obtain electric cars.
“We ordered 10 [Chevrolet] Bolt last January, says the leader of Taxelco. They were to be delivered in August. Today, we still do not know when they will arrive. Inevitably, this slows down Téo’s project. It’s sure and certain. If I put 100 electric vehicles in my business plan, I won’t realize it. »
PHOTO ROBERT SKINNER, THE PRESS
Frédéric Prégent is CEO of Taxelco, owner of Téo Taxi, Taxi Diamond and Taxi Hochelaga.
In its new version, Téo aims to expand its fleet through two means: by supporting the driver in his acquisition of an electric car as well as by being the owner of vehicles sold to drivers through a rental contract- acquisition.
The next year promises to be under the sign of sobriety in terms of electrification. Taxelco still welcomes owners of electric vehicles. There are about 40 of them at Diamond and Hochelaga with cars that do not wear the colors of Téo. It will be necessary to wait “somewhere towards the end of 2023 or the beginning of 2024” to consider acquiring vehicles, says Mr. Prégent.
Even if I wanted them, there are none, he adds. It’s a time of consolidation in the taxi industry, but with a more restrained electrification plan.
Frédéric Prégent, CEO of Taxelco
Patience
Téo must therefore temper its expansion ambitions. In addition to the Montreal region, five taxis operate in the Outaouais. Its director general claims to be discussing with “regions” interested in the service, but nothing seems to be about to materialize. Moreover, the arrival of Téo in Quebec is still at the planning stage.
“It is certainly not 2023 for Quebec, confirms Mr. Prégent. It’s more something for 2024.”
In the shorter term, by the summer of 2023, Taxelco believes it will be able to add some 100 vehicles to its fleet, but this growth will occur in gasoline-powered vehicles. The other component consists of “solidifying” partnerships with organizations such as the Société de transport de Montréal, the Société de transport de Laval and with Exo.
“It is better to concentrate our efforts on growing this niche,” says Mr. Prégent. When electric cars become available, the driver will not need to look for work to pay for his vehicle. The transfer to electrification will happen more naturally. »
Learn more
-
- 1500 vehicles
- Fleet size at Taxelco with its Téo, Taxi Diamond and Taxi Hochelaga brands
Source: TAXELCO