Tuesday, November 03, 2015

What Ever Happened To Eco City Vehicles ???.

Unless you've been in a coma, you will obviously know of  Uber, the minicab ehailing smartphone app that has disrupted taxi markets in more than 300 cities worldwide, including London. 

But you may be less aware of the substantial impact its explosive growth has had on UK companies. 

For instance, Eco City Vehicles (ECV), the former supplier of the six-seater Mercedes Vito to taxi companies, partly blamed weak trading in the first half of 2014 on "uncertainty caused in the licensed taxi trade by the emergence of Uber." 

The chart below shows the precipitous decline in Eco City's share price over the past three years. The group entered and then exited administration during this period and now operates as a technology, media and telecoms investment company....sound familiar?

Source: Stock Exchange Jan2011-Jan2015

The easy availability of private cash could delay an Uber flotation: 

Uber boss Travis Kalanick recently said the group is "nowhere near" the point of seeking a public listing. "Give us a few years," he added. 

Uber entered the London market in 2012 to much furore - it recently won a legal battle over the right to operate in the capital. Its UK operations posted a tenfold increase in turnover to £11.3m, according to the subsidiary's latest Companies House filing. 

Reports have been publish which allege that although the company turned over £11.3m, it paid less tax in the UK than 5 average London Taxi drivers have in total. 

1 comment:

Anonymous said...

What happened to Eco City Vehicles ? Google Mercedes Vito rear wheel steering problems and read the horror stories. This coupled with alleged appalling customer service at KPM put the reputation of KPM/ECV down the toilet. The Vito was introduced as the future cleaner vehicle for London - it wasn't and isn't. It had a massive identity problem. It was expensive, unreliable and drivers stopped buying it. The economic statement put out by KPM/ECV is a crock. In my opinion, they deserved to go bust, and I'm glad they did!