Businesses have forced to rethink their strategy for reaching climate change targets due to the exponential expansion of online purchasing and, as a result, delivery services. The main businesses are changing their strategy to save the world as a result of increasing pressure from regulatory agencies and consumers, as well as a desire to strengthen brand image and customer engagement. With the popularity of electric delivery vehicles (EVs), some of the biggest manufacturers have committed to switching their fleets to EVs over the next few decades, both on the sales and delivery sides.
Table of Contents
- The Electrification of Vehicles
- Collaboration is Essential
- Amazon’s Switch to Electric
- Huge Fleets, Huge Shifts – UPS & Fedex
- The Foreseeable Future
The Electrification of Vehicles
Electric vehicles are not new at this point; in fact, the first primitive electric vehicles were built in the 1830s, with more advanced versions following in the late 1800s. Individual consumers have had the choice of converting to hybrid cars since the late 1990s, when the Toyota Prius was introduced to the market. With Tesla becoming a feasible alternative for consumers and the development of charging networks to make usage easier, the EV industry boomed. Now, we’re seeing a growing trend of major retailers, like as Amazon, committing to electric fleets, and delivery companies, such as UPS and FedEx, following suit.
Collaboration is Essential
IKEA, the Swedish furniture behemoth, has pledged to make the changeover to electric vehicles. In 2018, the company began making all deliveries with electric vehicles in Shanghai, China, and promised that all deliveries in Paris, Los Angeles, New York, and Amsterdam will follow suit by 2020. Because IKEA does not own a fleet and deliveries are not part of their main business strategy, collaboration is vital to their success. In Shanghai, they collaborate with Beiye New Brother Logistics Co., a warehouse and distribution partner, and DST, an electric car leasing company. In Shanghai, the two firms collaborated to build an electric vehicle and vehicle charging sharing network for IKEA. DHL, UPS, and PostNord (Danish and Swedish postal services) have agreed to collaborate with IKEA, and as a result, are saving money due to the lower maintenance and operating expenses of electric vehicles compared to diesel trucks.
Amazon’s Switch to Electric
With more than 10 billion deliveries every year, Amazon is clearly one of the world’s greatest logistics operations. As part of its commitment to the Climate Change Pledge to become net-zero carbon by 2040, the firm stated in September 2019 that it would purchase 100,000 electric trucks for a total investment of $700 million. This was the greatest investment in electric vehicles to date, and it has sparked interest in the industry. Rivian, the truck-building start-up, will provide three distinct truck sizes to fit different cities and environs. In 2021, vans will begin delivering to consumers, and by 2022, roughly 10,000 electric cars will be on the road. According to a statement released by Amazon in May of this year, all 100,000 vehicles will be on the road by 2030.
Huge Fleets, Huge Shifts – UPS & Fedex
UPS and FedEx, two of the world’s largest delivery companies, have been making modifications to their fleets in various ways to assure a greener and more sustainable future for their operations. Since 2009, FedEx has made occasional deliveries using electric cars, and the company believes that further adoption of alternative fuel, electric, and hybrid electric vehicles would help reduce global emissions while diversifying and increasing renewable energy alternatives. In 2019, the company added 1000 electric trucks to its fleet, which would be utilized for deliveries and pick-ups in California. It’s a mix of buying and leasing cars designed to help manufacturers and suppliers break into the North American market while ensuring fleets receive high-quality, cost-effective servicing for their innovative technologies.
UPS, on the other hand, has pledged to purchase 10,000 new, purpose-built vehicles as part of an investment in Arrival, an electric vehicle manufacturer. UPS, like other industry leaders, is always innovating and seeking solutions to the carbon emission problem, as well as creating value for their customers and partners by operating a cleaner and more sustainable fleet. “Our investment and partnership with Arrival is directly aligned with UPS’s transformation strategy, led by the deployment of cutting-edge technologies. These vehicles are the world’s most advanced package delivery vehicles, redefining industry standards for electric, connected and intelligent vehicle solutions,” said Carlton Rose, president of UPS Global Fleet Maintenance & Engineering. The company is also collaborating with partners on novel charging and storage options that have already been implemented in London, UK.
The Foreseeable Future
The adoption of electric vehicles by the wider delivery community will be influenced by fleet economics. As the savings and benefits of electric vehicles become more apparent, competitors of early adopters will undoubtedly follow suit. The market is projected to grow to additional possibilities in the commercial and passenger arenas as prices drop with the manufacturing of higher volumes of vehicles and increased access to charging and storage facilities. Cities are great for EV delivery because they have dense, predictable routes, high usage, and stop-and-go traffic. If a concerted and global effort to reduce emissions and prevent climate change is to be made, there is no other option except to change the way deliveries are made.
To run an electric delivery fleet, you will need excellent delivery management software. That’s where EasyRoutes comes in. From creating multiple optimized delivery routes at once, to helping with picking and packing, to proof of delivery, EasyRoutes gives small businesses delivery superpowers like the big guys. Try it for free!