EV Leasing Start Up Zevvy Shuts Down And This is The Reason

An electric car leasing business in Hayward has closed owing to what its creator described as “bad timing” amid turbulent market conditions.

CEO Andrew Krulewitz co-founded Zevvy, formerly known as Flux EV Inc., in 2021 with Alex Shulman, Miranda Spradlin, and James Greff.

Let us know why the EV leasing start up Zevvy shuts down with the reason.

EV leasing Start Up Zevvy Shuts Down Due To Bad Timing

Zevvy is a startup that aims to bring electric vehicles (EVs) directly to customers. EV leasing start up Zevvy shuts down due to poor timing and strategic errors.

At first, the timing appeared to be to Zevvy’s advantage. Krulewitz, a self-described “fast-talking, first-time founder,” successfully obtained pre-seed and seed finance to launch the firm.

The timing proved inauspicious, and the corporation’s profits still needed to be offset with the tax credits. So, other companies needed to monetize them.

Krulewitz wrote on LinkedIn,

“As of October 2023, our vehicle assets were worth nearly 50% less than when we purchased them.”

At the same time, the cost of the funds went up by nearly 40%.

Venture Capital Comes With Issue

Krulewitz realized how laborious and costly it is to work with fleets of vehicles, which needed to be insured, maintained, and retailed.

Krulewitz wanted to get drivers quickly in EVs, but it is a challenging sector for a minor startup with limited investors and funds expecting venture-grade returns.

EV Leasing Start Up Zevvy Shuts Down. Image Credit: LinkedIn.

The company’s venture capital was sought but proved costly and laborious.

Krulewitz noted in the post,

“I still don’t know if we ultimately were trying to build a leasing company, a marketplace, or a technology platform.”

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Electric Vehicle Access Is Slowly Increasing

Access to EVs is slowly increasing, with the 2022 Inflation Reduction Act pushing down prices for EV buyers.

Other startups, like Spring Free EV and Hive, offer pay-per-mile accessible EV offerings.

Krulewitz plans to continue working to link up clean energy, automotive retail, and financing, with confidence in the convergence of clean energy, automotive retail, and financing.