Private hire giant Addison Lee is making a £30m investment in 600 brand-new, plug-in hybrid (PHEV) Volkswagen Multivans for its passenger fleet.

Addison Lee says it’s now “taking a more pragmatic approach” on how to achieve a zero-emission fleet

The new arrivals will replace the remaining diesel people carriers on the fleet, providing a more sustainable alternative, but marking a shift in direction from the firm’s commitment to fully electric vehicles by 2023.

Addison Lee is now saying its entire standard passenger fleet is set to be “zero-emission capable” – which includes PHEVs – by April 2024.

The business already has 1,000 fully electric Volkswagen ID.4s on its standard fleet, along with 400 Audi A6 PHEVs on its executive fleet. The acquisition earlier this year of sustainable operator Green Tomato Cars also strengthened the firm’s position as the capital’s largest private hire, taxi and same day courier business, while also bringing a wide range of full electric, hybrid and plug-in hybrids onto the fleet.

It’s also built strategic partnerships with BP Pulse, ChargePoint and Bonnet, as well as invested £150,000 to install ultra-rapid charging points at the company’s West Drayton fleet hub.

But while Addison Lee says it’s the first private hire operator in London to introduce electric vehicles at scale, it’s since come up against several challenges. These include reliable infrastructure – as warned about by the company on several occasions.

As a result, it is now “taking a more pragmatic approach” on how to achieve a zero-emission fleet – but says it remains committed to the goal in the long-term.

CEO Liam Griffin commented: “Right now, there is neither the availability of vehicles nor robust enough charging infrastructure in London to go fully electric at speed and scale. That’s why we’re investing today in a broader range of sustainable options to meet current demand from passengers – while remaining committed to our long-term goal of full electrification.

“It’s critical that we have both the right infrastructure and regulation in place to allow us to achieve this. That’s why we’re asking the Mayor of London to reconsider his plans to abolish the congestion charge exemption for electric vehicles. Removing this vital incentive will make it more costly to operate electric vehicles in the capital and jeopardise his net zero 2030 ambition for the city.”