After launching in 2016, flexible car leasing firm Evogo has now supplied more than 10,000 vehicles to customers across the UK. Chris Coates spoke to Evogo director
John Tustin about the company’s journey and how it is adapting amid a pandemic and the rise of electric vehicles
Tell me a bit about the business.
Evogo is a smart alternative to vehicle leasing or car ownership, with a focus on vehicle subscription and flexible rental agreements. We offer 89-day contracts which can be renewed, but after the initial 89 days the vehicle can be handed back without cost, allowing customers to drive the latest makes and models without the cost of ownership or the burden of a lengthy lease.
How has it developed over the years?
Evogo was originally based in Chesterfield when vehicle subscription was in its infancy. After initially offering the flexible rental scheme to family and friends of our staff and receiving excellent feedback, we started to roll the service out to the wider public.
Due to our rapid expansion, a move quickly followed to our current head office on Upwell Street in Sheffield. It’s a 65,000 square-foot warehouse and office space which was formerly part of Sheffield Forgemasters.
Our vehicle fleet quickly grew thanks to a large volume of referral business, resulting in us opening a second location at Houghton Regis in Bedfordshire in 2017.
We now have a wide range of brand-new vehicles to choose from and have supplied in excess of 10,000 vehicles since launch.
What are the key milestone achievements in recent years?
The first milestone was to reach a fleet of 1,000 cars, which we achieved fairly quickly. Beyond that, opening the new premises at Houghton Regis was a big moment as it helped us to manage movement of our vehicle stock and improved accessibility for customers in the south of England.
We are now at the point where we have manufacturers contacting us asking if we want to take on a fleet of their vehicles, which I consider to be a milestone achievement. It shows we have built up a reputation to the extent that manufacturers, who we would previously approach to purchase vehicles from, are now requesting to work with us – that demonstrates the progress we have made in the past five years.
How has the company dealt with challenges caused by the pandemic?
Like many businesses we have had to adapt our operations, but some of the changes we have made will become permanent even after we return to some form of normality.
Firstly, we have digitised the process a customer goes through when they want to lease one of our cars, meaning that they no longer have to visit our site. We have received excellent feedback since we started offering the service so we will never go back to the old process.
At the start of the first lockdown, we also allowed customers to return vehicles before the end of their rental agreement at no extra charge. The idea behind this was to make it easy for customers who were either being financially impacted by the pandemic, or were simply not using their vehicles, to be able to return them without being penalised. Some of these customers have since returned to take out new contracts when restrictions were lifted.
We have also seen increased demand for commercial vehicles with the rise of online sales and the subsequent increase in delivery jobs. Our service is ideal for self-employed drivers who need a van to make their deliveries, especially those who are looking for a short-term job to generate income while they cannot do their normal work due to lockdown restrictions.
What sort of feedback do you get from staff about the company culture and workplace environment?
We aim to make our working environment as enjoyable as possible for our staff, most of whom have been with us since we originally launched back in 2016. Prior to social distancing rules, we created an open plan office environment where all departments work closely together – a setup we will return to when restrictions allow. This ensures everyone is aware of what each department is doing.
Our fleet support team members are also cross skilled and can carry out numerous functions within the business, increasing efficiencies and contributing to an improved customer experience. We have a flat management structure which gives our staff the freedom to make decisions, allowing us to react to any customer requirements with flexibility and ease.
What are your plans for the future to drive further success?
We are very much following the motor industry as it moves towards hybrid and electric power.
Currently, EVs carry a significant premium over the equivalent petrol and diesel vehicles, and we know that some customers are unsure about whether an EV will work for them, so they are reluctant to spend the extra money on buying one outright or taking out a long lease. Evogo is an ideal way for those people to sample electric vehicles and work out whether the current offering of EVs are suitable for their needs.
We are also exploring the possibility of offering longer leases after receiving requests from customers. Some people are happy with their cars and have no desire to change them after six months, so we think by offering a longer contract we can add further options for customers depending on their specific needs.
