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What does the expanded London ULEZ mean for fleet managers?

Wednesday, May 17, 2023 - 08:44
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The Ultra Low Emission Zone (ULEZ), introduced by the Mayor of London Sadiq Khan in an attempt to tackle air pollution and improve air quality in the capital, has proved to be a double-edged sword.

The ULEZ has been described as one of the most radical anti-pollution policies in the world. A poll in April 2019 by YouGov found that 72% of Londoners supported using emissions charging to tackle both air pollution and congestion, but equally, the Federation of Small Businesses said that many small firms were “very worried about the future of their businesses” as a result of the “additional cost burden”.

In April 2019, the ULEZ expanded to cover a larger area of London, and in August of 2023, it will expand again to encompass all of Greater London. This means that any vehicle entering the zone must meet certain emission standards, or they will be liable to pay a daily charge.

ULEZ expansion map

Image source: Transport for London

For London’s fleet managers, this is a major change that will have to be dealt with swiftly and effectively. The newly expanded zone covers a much larger area, so more delivery destinations will be affected, and these additional cost burdens can quickly stack up for the unprepared. This means that fleet managers will have to find ways to consistently keep their vehicles compliant with the new regulations and monitor their drivers’ routes with pinpoint accuracy.

The first step is to know exactly which vehicles fall within the scope of the ULEZ. All cars, vans, and motorbikes registered before 2006 are liable for the charge, as are lorries and buses registered before 2009. It is important to be aware of this as it will help fleet managers, especially those on the edges of London who have not previously dealt with the ULEZ in great detail, to identify which vehicles must be upgraded initially.

The next step is to check the emissions of each of your remaining vehicles. The ULEZ additionally requires all vehicles to meet the Euro 6 emissions standard. This means that all vehicles that don’t meet this standard must also be upgraded or replaced.

Fortunately, there are some options available for fleet managers. The simplest and most cost-effective solution is to upgrade the existing vehicles with emissions-reducing technologies. For example, many diesel vehicles can be fitted with diesel particulate filter (DPF) systems, which will help them to meet the ULEZ standards. But don’t expect a longterm fix – these will require regular replacement and maintenance.

Other options include switching to cleaner fuels like Electric or replacing the existing vehicles with newer, more efficient models. This option, although daunting at first, might be the most economical solution in the long run.

Savvy fleet managers will be well aware that running an electric fleet will massively reduce your costs – no fuel and minimal maintenance makes electric vehicles highly appealing for fleet managers working in high-volume, short-distance deliveries like QSRs. New research from iCompario suggests that rising fuel costs have made 86% of fleet managers seriously consider switching to EV and hybrid models.

Converting your whole fleet comes with costs, but companies like Blitz Motors are disrupting this space even further, offering a B2B lease model that reduces the upfront costs and includes a fleet management platform to boot. For an independent restaurant chain like Kish, already based inside the ULEZ, Blitz Motors offered the perfect solution. With 0 emissions, owner Massoud doesn’t have to worry about additional fees, and with a fleet of branded eMopeds, he doesn’t worry about third-party delivery apps taking a cut either.

The ULEZ expansion is a significant change for London’s fleet managers, but there are ways to mitigate the impact. By checking which vehicles are affected, and upgrading and replacing them with electric ones, fleet managers can keep their business ahead of the changes.

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