Zoomo transforms delivery with eco-friendly vehicles

Zoomo is a world leader in light electric vehicles. Discover how we worked with them to grow their fleet through a Hire Purchase agreement, backed by the Growth Guarantee Scheme.

Founded in 2017, Zoomo is now a world leader in light electric vehicles (LEVs) designed specifically for the delivery sector. Operational in most major UK cities, Zoomo aim to provide accessible, sustainable and efficient alternatives for delivery drivers. Working on a subscription basis, they offer leasing, servicing and maintenance of their e-bikes which come equipped with features such as electronic locks, GPS tracking, in-built alarms and fast charging.

Revolutionising delivery sector with light electric vehicles

Every online order delivered using vehicles powered by fossil fuels contributes towards the UK's daily carbon footprint. As part of their mission to help tackle emissions generated by logistics, Zoomo has partnered with a well-known logistics player to provide electric powered vehicles to their delivery drivers and reduce the number of petrol vehicles on the roads.

Zoomo approached Close Brothers Asset Finance to obtain financing for a fleet of EAV (Electric Assisted Vehicles) cargo bikes. These bikes are designed to navigate through busy areas, aiming to reduce both delivery times and emissions.

Backed by the Growth Guarantee Scheme

Kingsley Smith, Sales Manager for Close Brothers Asset Finance’s National Accounts team, worked with the team at Zoomo to understand their business requirements. With the cargo bikes being classed as unique assets, Kingsley suggested that a Hire Purchase agreement, supported by the Growth Guarantee Scheme, would be the most suitable finance option.

While many other lenders may view unique assets as overly risky, the Government-backed Growth Guarantee Scheme is specifically designed to facilitate access to finance for UK small businesses seeking to invest and expand.

Driving efficiency and sustainability

By using a Hire Purchase agreement, supported by the Growth Guarantee Scheme, Zoomo was able to acquire the EAV cargo bikes and spread the cost of the fleet into manageable instalments to suit their cash flow. This has helped them fulfil their partnership with the logistics company and consequently reduced the number of petrol vehicles on the roads.

As a result of the secured funding, Zoomo successfully acquired close to 100 vehicles. Adding more electric vehicles to their fleet makes greener delivery options more accessible to their customer and is a step towards helping reduce emissions from logistics.

Kingsley Smith, Sales Manager, said: “It has been a pleasure collaborating with Zoomo to expand their fleet and provide more eco-friendly delivery options to logistic companies across the UK. I enjoyed getting to know their business model and their mission to tackle emissions. This deal highlights how Close Brothers Asset Finance goes above and beyond to find suitable finance solutions, rather than relying solely on a credit score.”

Micheal Johnson, CRO and Co-Founder of Zoomo said: "We couldn't have done this deal without the support from Close Brothers Asset Finance. Their understanding of our needs and this new asset class allowed them to tailor a financing solution that met the needs of our customer. The new EAV Cargo Bikes will transform their operations and allow them to deliver more efficiently in the centre of London.”

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Growth Guarantee Scheme-backed facilities are provided at the discretion of Close Brothers Asset Finance. We are required to undertake our standard credit, and fraud checks for all applicants.

Products and services are subject to eligibility, status, terms and conditions and availability. All lending is subject to status and our lending criteria. The right to decline any application is reserved.