Bangalore, India: Switching on the electric rickshaw

The first thing that comes to mind when speaking of transportation in Asia is the iconic rickshaw. Powered by motor, pedals or sometimes even human traction, these three-wheeled vehicles are found everywhere on the roads from Katmandu to Kyoto.

Rickshaws are an essential link of current transport systems in Asia. In small cities, it’s often the only mode of transport. In big ones, their unofficial grid planning provides feeder routes for the main transport axes. Just like the alimentadores buses we had introduced you to in South America, they are used to cover the first and last kilometers of a trip.

Nevertheless, rickshaws are the first mode of transport to be criticized by governments, who don’t hesitate in using them as a scapegoat for their cities’ problems. Pollution, noise, breaking traffic rules… Undeniably, rickshaws have their share of responsibility when it comes to the joyful mayhem of Asia’s big cities.

Working with Three Wheels United, our team took a good look at what the future holds for the iconic rickshaws.

Three Wheels United can play a role in defining the market for rickshaws. As a provider of microcredit loans for drivers who wish to become owners of their vehicles, they can encourage them to choose one rickshaw rather than another. When the company was launched, the ban on 2-stroke auto-rickshaws had just been passed in Bangalore, in order to replace them with less polluting 4-stroke vehicles. After having accompanied this first market evolution, Three Wheels United is now interested in greener technologies and is considering electric rickshaws.

Inauguration of Three Wheels United’s 4-stroke rickshaws

Despite the hype surrounding the concept, the first electric rickshaw were a far cry from being revolutionary. Made in China, the battery-powered tricycles were in every way similar to golf carts: 25 km/h maximum speed, 6-hour charge time, etc. They nevertheless submerged a few cities like Manila and Delhi, and launched the electric rickshaw market.

Today, entrepreneurs all over the world are taking up the challenge. Taking on the role of business developers, we explored the electric rickshaw market and discovered what was coming up in 2017. Here’s a sneak peek of the vehicles and business models we discovered:

The Japanese champions

Terra Motors, Prozza Hirose, BEMAC

The Japanese currently stand out on the market thanks to the large number of companies launching ever-more efficient and robust products. Terra Motors’ Y6 model can be charged up to 80% in less than an hour, while BEMAC’s vehicle reaches the speed of 60km/h. These vehicles are progressively appearing on the roads and carry with them the reputation of Japanese engineering.

The autonomous vehicle

Sunnyclist

While most electric rickshaws producers target low prices in priority, some companies dream bigger and have come up with what could be the rickshaw of the future. Greek start-up Sunnyclist’s electro-solar vehicle is a jewel of renewable energies and sustainable components. Thanks to its solar panels, the battery can be charged anywhere. It is also powered by an regenerative braking system. In case that’s still not enough, removable pedals allow passengers that up for workout to participate in the vehicle’s movement. On a classic plug, the battery charges up in a record time of 2 hours. The result is a promised autonomy of 190 km, twice as much as for most electric rickshaw models. The first vehicle are meant for the European market and will be produced this summer. A prototype for emerging markets is currently in test phase. We wish all the best to the passionate Greek team behind the Sunnyclist.

Learn more about the Sunnyclist in their video!

Innovative business models

CleanMotion, Mellowcabs

When it comes to cutting edge technologies and designs, the main hurdle is usually financing. Rickshaw drivers in Asia mostly earn low wages and have no access to bank loans. To enter the electric rickshaw market, a well-thought business model is what makes all the difference. We came across two especially innovative ones. South African company Mellowcabs finances its electro-solar vehicles thanks to advertising, offering Led lighting of ads on the vehicle for a 24/7 mobile, local and memorable exposure.

In India, Cleanmotion has just launched its first electric rickshaws in Delhi thanks to a franchise system. On the basis of a five-year contract, the franchise operates the vehicles on a predefined route (for example, from the metro to the mall) and manages the team of drivers. Cleanmotion is in charge of maintaining the fleet, replacing batteries and managing the charge station. Far from the current system of microentrepreneurship, a franchise operating a network can finance vehicles that are two to three times more expensive that the classic Indian autorickshaw.

Inauguration of the Zbee network in Dehli, February 2016

Conquering the west

Tuk Tuk Factory

While these business models were conceived to penetrate the BOP (bottom of the pyramid) market, other companies are betting on the electric rickshaw’s success… in developed countries. The electric rickshaw is presented as a solution overcoming the limitations of current public transport systems. Electric, silent, its main asset is actually its size, as small vehicles allow for adaptable and on-demand public transport (versus buses that are overcrowded during peak hours and empty in off-peak hours). Company Tuk Tuk Factory has sold its first eTuks to the city of Denver, in Colorado, to cover “the last mile” of a commuter’s trip.

The Denver eTuk, Colorado

Nevertheless, developing countries remain a key market for these companies. Tuk Tuk Factory has entered the Egyptian and Thai markets through touristic guided tours. They are betting on the trickle-down effect to progressively reach the BOP market.

Japanese, Swedish, Filipino, Dutch… There are more and more start-ups promising the electric rickshaw of the future. Their success depends nevertheless on a range of factors beyond their control. When it comes to attracting new customers for example, the major issue remains range anxiety, in other words the fear of getting stranded far from home without any options to recharge the vehicle’s batteries. This is all the more true for independent rickshaw drivers who rent their vehicles to other drivers when they aren’t driving it themselves. Their vehicle has to be operational 24/7. Time and technology may bring charge times down in a few years. In the meanwhile, everyone seems to be waiting for the creation of a network of charging stations. But to create such a network, you need a lot of customers…

As a result, many companies are asking for public investment. This could be investment in charging station networks, government aid when buying an electric vehicle, or support to the growing battery industry. In the Philippines, the government is progressively creating a favorable ecosystem for electric vehicles, and has just granted a first contract in the goal of producing one hundred thousand electric rickshaws for the Filipino roads as part of a common project by the Department of Energy and the Asian Development Bank. The country has already self-proclaimed itself as the future hub for electric vehicles in Asia.

In India, for the moment, the industry is still waiting for the grants the government has promised upon purchasing a vehicle. The answer may lie in the famous Jugaad spirit, the Indian version of DIY, that motivates electric rickshaw drivers today to divert electric poles to their vehicles, and that could provide the drive for an ingenious launch of electric rickshaws in India in the near future.

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