Rather than selling a car as a product, Riversimple’s business model is based on selling mobility as a service. It provides a car under a performance contract, typically for one to three years, with monthly direct debits covering all costs, which include maintenance, insurance and fuel. This is how Riversimple profits from efficiency. The company believes it is the world's first independent manufacturer of hydrogen fuel cell passenger vehicles.
Riversimple's current circular economy initiatives focus on the following areas:
1) Developing a vehicle suited to their service based business model - one that is efficient, long lasting and built for remanufacture and recycling
2) Testing its service customer value proposition through a beta trial
3) Creating a value network with suppliers to service the supply chain
4) Exploring circular economy opportunities in China
Riversimple’s strategy and business model have been based on an alignment of interests and closing all loops since the company’s establishment in 2001. From the outset, its technology and cars have been developed on the assumption that the car will remain on the balance sheet; the key design criterion is to minimise lifetime cost rather than build cost so the model yields a completely different car. A key aspiration is to work towards a comprehensive circular value network by encouraging suppliers to adopt service based business models. Gaining insights and undertaking projects to prove the power of this approach, in both environmental and financial terms, is critical to Riversimple's circular economy activities. Riversimple sees its membership of the CE100 programme, through developing collaborative working relationships with suppliers and partners, as central to realising this aspiration.