According to Business Wire, a San Francisco Bay Area-based company with a ‘total cost of ownership’ electric vehicle (EV) lease product announced its official launch and rebranding to ‘Zevvy‘ alongside $5.4M in seed funding.
It is led by MaC Venture Capital, with participation from BoxGroup, Gardner Capital’s Upward Mobility Fund, Climate Capital, MissionOne Capital, I2BF Global, and other leading impact and clean economy angel investors.
The rebranding and funding serve as the launchpad to a growing Zevvy’s operational and technical capacities over the next year. Hence, it allows the company to expand EV access to thousands more drivers across California.
“Zevvy’s mission to provide accessibility to drivers that will benefit the most from EVs was imperative for us to support,” said a founding managing partner at MaC Venture Capital, Marlon Nichols.
“As firm believers in providing equity and accessibility to all, Zevvy’s goals of significantly impacting the auto finance industry and EV affordability was a clear fit. We look forward to supporting their continued growth and watching in real time the transformative effect this company will have in California, the entire auto industry, and beyond.”
Founded in 2021, Zevvy is disrupting the massive auto finance industry—that met increasingly concerning trends last year, which includes a record-high $1.43T in auto loan debt.
D2C Financing Platform for EVs
Zevvy’s pay-by-the-mile lease product allows drivers to personalize their terms and lets them try an EV without high initial costs, long-term commitment of a loan, or barriers such as mileage caps that come with subscription services and traditional leases.
Zevvy customers pay a low fee per month and only a few cents for driving per mile, saving money in contrast to what it would cost on fuel and maintenance for a conventional gasoline-powered car.
When the lease term is up, they can return, renew month-to-month, or buy their EV outright, applying all paid mileage fees to the purchase cost of the car.
“The idea for Zevvy was born out of my own daily commute,” said Andrew Krulewitz, founder and CEO of Zevvy.
“While I was in an EV, thousands of drivers sat next to me on the freeways in gas cars. With gas prices on the rise and both super-commuting and gig driving becoming more common, I started thinking through what solutions were available to help high-mileage drivers like these—the ones who will benefit most from making the switch from gas to electric.”
Danny Brown, a partner at MaC Venture Capital and Zevvy board member, says, “What’s particularly exciting about Zevvy is that it comes without the high initial cost or long-term commitment of a loan—barriers that typically hinder many from getting an EV,”
He added that “customers significantly benefit from the low monthly fees, saving both money and the environment.”
Climate Tech Finance Program to Support the Company
Notably, the company is also supported by the State of California’s Climate Tech Finance program, administered by the Bay Area Air Quality Management District, California Bank of Commerce, the IBank Loan Guarantee Program, and Northern California Financial Development Corporation.
All of them acknowledge the significance of Zevvy’s work in handling the challenge of EV affordability and serving drivers for whom the savings of converting to EVs will be most influential.
“Reducing barriers to electric vehicle adoption is critical as we work to reach our ambitious greenhouse gas reduction goals,” stated Sharon Landers, interim Air District executive officer.
“The Air District is excited to provide financial support to innovative solutions that both expand access to EVs and reduce our reliance on fossil fuels.”
With most Americans stating they would shift to electric if there’s price parity with gas-powered vehicles, Zevvy is ready to offer a realistic and widespread solution to EV’s mass adoption.
After a year-long pilot from San Francisco to Sacramento customers, the platform has shown to be a massive success.
A partnership with Uber has thousands of drivers apply for the lease. Many had been looking to get out of an older gas car or a high-cost rental. Vehicles in Zevvy’s fleet have an average of 25,000 miles per year, and customers save hundreds of dollars monthly by avoiding the fuel and maintenance costs of gasoline-powered vehicles.