Hype’s pivot to electric shows how endless subsidies can’t fix the physics — or the economics — of hydrogen transportation.
Hype, once celebrated as a poster child for hydrogen mobility in Europe, has abandoned hydrogen as its primary fuel source, and has pivoted to solely electric vehicles for taxis. This pivot should not surprise anyone who has been closely tracking the consistent and inevitable collapse of hydrogen-powered transportation ventures around the globe. The story behind Hype’s decision to abandon hydrogen illustrates clearly what happens when financial reality confronts overly optimistic, subsidy-dependent business models.
Hype began its journey as a hydrogen taxi service with great fanfare in Paris in 2015, positioning itself as a beacon of sustainable urban transportation. Initially launched with just a handful of vehicles, the startup rapidly grew its fleet by capitalizing on a wave of generous subsidies and grants designed to accelerate hydrogen mobility across Europe. The foundational premise of Hype’s business model was not profitability but rather leveraging substantial external public funding, initially from French government agencies and subsequently bolstered by European Union programs, allowing the firm to rapidly expand its operations without bearing the true cost…
