Hype Taxi, a hydrogen-only taxi app company based in Europe, has managed to secure €55 million in European grants, surpassing investment from private investors. While ride-hailing apps were gaining popularity in Silicon Valley and elsewhere, Hype Taxi saw an opportunity to tap into the growing hydrogen hype. It rebranded from Société du Taxi Électrique Parisien (STEP), an electric taxi firm that wasn’t performing well, to Hype Taxi in 2015. The founder, Mathieu Gardies, recognized that grants for hydrogen projects were much larger than those for electric vehicles, which allowed for bigger numbers in corporate bank accounts and projected success.
However, the success of Hype Taxi raises questions about the viability of hydrogen as a transportation solution. Despite receiving substantial funding, Hype Taxi failed to meet its targets. The average distance driven between failures fell short of expectations, with one set of fleets averaging only 785 kilometers before requiring repairs. In comparison, battery-electric fleets are typically lower maintenance than diesel vehicles. Furthermore, the cost of producing and distributing hydrogen resulted in elevated expenses, making it difficult for Hype Taxi to compete with firms using more affordable alternatives such as electric vehicles.
Moreover, the European Union’s funding system for hydrogen transportation schemes appears to lack effective accountability measures. Since 2008, the EU has invested approximately €1.2 billion in grants for hydrogen projects, yet there is little to show for it. Hype Taxi, aware of this flawed system, has managed to operate with heavily subsidized costs, allowing for artificially competitive pricing.
The challenges with hydrogen transportation extend beyond Hype Taxi. The California government, for instance, received €1.2 billion as a hydrogen hub, which is now being spent on transportation instead of fertilizer. Ballard, a prominent player in the hydrogen sector, has also faced significant losses of $1.3 billion since 2000, with no profits to date.
These examples highlight the need for a critical evaluation of hydrogen as a decarbonization solution for transportation. While hydrogen may offer potential benefits, such as zero emissions and longer driving ranges, the high costs, lack of infrastructure, and underwhelming results raise doubts about its suitability as a viable alternative. As investments continue to pour into hydrogen projects, it’s crucial to ensure that funding is allocated wisely and based on tangible results rather than hype and speculation.
Frequently Asked Questions
Q1: What is Hype Taxi?
A1: Hype Taxi is a hydrogen-only taxi app company based in Europe that rebranded from Société du Taxi Électrique Parisien (STEP) in 2015.
Q2: How much funding did Hype Taxi secure?
A2: Hype Taxi secured €55 million in European grants, surpassing private investment.
Q3: Why did Hype Taxi choose to focus on hydrogen?
A3: Hype Taxi recognized that grants for hydrogen projects were larger than those for electric vehicles, allowing for greater financial success.
Q4: Did Hype Taxi meet its targets?
A4: No, Hype Taxi failed to meet its targets, with the average distance driven between failures falling short of expectations.
Q5: What were the challenges faced by Hype Taxi?
A5: The challenges included high maintenance costs, elevated expenses for producing and distributing hydrogen, and difficulty in competing with firms using more affordable alternatives like electric vehicles.
Q6: What issues exist with the European Union’s funding system?
A6: There is little accountability and tangible results despite the significant investment made in hydrogen projects, allowing Hype Taxi to operate with heavily subsidized costs.
Q7: What other examples highlight the challenges of hydrogen transportation?
A7: The California government’s €1.2 billion hydrogen hub funding is being spent on transportation instead of fertilizer, and Ballard, a prominent player in the sector, has faced significant losses without any profits to date.
Q8: What doubts are raised about hydrogen as a decarbonization solution for transportation?
A8: High costs, lack of infrastructure, and underwhelming results raise doubts about hydrogen’s suitability as a viable alternative, despite its potential benefits.
Definitions
– Hydrogen: A chemical element (H) that is a colorless, odorless, and highly flammable gas. It is considered a potential clean energy source due to its ability to produce electricity when combined with oxygen in a fuel cell.
– Grants: Funds given by governments, organizations, or institutions to support specific projects or initiatives. Unlike loans, grants do not need to be repaid.
– Silicon Valley: A region in the southern San Francisco Bay Area of California known for being a major hub of technology and innovation, particularly in the field of information technology.
– Hype: Excessive or exaggerated publicity and excitement surrounding a particular idea, product, or trend.
– Battery-electric vehicle: An electric vehicle that runs solely on electricity stored in its battery, without the need for any other fuel source such as hydrogen or gasoline.
– Infrastructure: The basic physical and organizational structures and facilities needed for the operation of a society or enterprise. In this context, it refers to the necessary infrastructure for hydrogen transportation, such as refueling stations.
Suggested Related Links
– European Commission – Hydrogen Transport
– California Hydrogen Business Council
– Ballard Power Systems
The source of the article is from the blog tvbzorg.com