Addison Lee’s environmental image has been boosted by running 300 Toyota Prius vehicles – the largest hybrid minicab fleet in London.

However, Lee Wickens, CSR and quality manager at Addison Lee, points out: “The best way of delivering an environmentally-friendly service is to choose the closest vehicle.

“If the Prius is 10 miles away and there’s a Ford Galaxy 100 yards away, there’s no point sending the Prius. Although if someone specifically asks for a hybrid we will send one.”

The other challenge Wickens faces is that the Prius can’t be fully integrated into the fleet as it is “based around a four-seater car”.

The rest of the minicab fleet is six-seaters and Wickens points out that generally when people order an Addison Lee cab they expect a people carrier to turn up.

No reliability fears over hybrid technology

Reliability has been a plus point though. “We own, run and service the fleet so vehicles need to be as reliable as possible and the hybrids have proved to be reliable, solid cars,” Wickens says.

“There’s no reason why we wouldn’t be a fully hybrid fleet if the right size vehicle at the right price came along,” he adds.

“We will definitely be taking a look at the Ford C-Max hybrid when it’s available.”

Wickens has already been offered a hybrid people carrier that was an aftermarket conversion, but the costs were prohibitive and he prefers original equipment.

Cost is also an issue for Dale Eynon, head of fleet operations at the Environment Agency.

The organisation currently runs 127 hybrid cars, with a further 42 on order, and drivers are typically choosing them because the low BIK tax offsets the payment they make for personal use of the vehicle.

However, Eynon says: “You pay a premium for hybrids. The manufacturer support terms are often less than with diesels.”

Phil Robson, director – fleet and used vehicle operations at Peugeot, agrees that fleet operators don’t get the same level of support, but he points out that the issue is that “it’s not cheap technology”.

“The technology is still new,” he says. “Until there are larger numbers the price won’t be coming down.”

But other fleet managers, such as Bonney, don’t see the costs as prohibitive. “Lease rates might be higher, but the employer’s NI is lower so that supplements some of the higher rental rate,” he says.

Fleet managers also need to consider residual values. For outright purchase fleets, other factors are how long hybrids might take to sell at auction and vehicle age and mileage.

Whether hybrids manage to achieve a premium at auction is a concern for leasing company Motiva.