Commercial electric vehicles are a game-changer for the supply chain
The current high cost of filling a car with fuel has made headlines around the world, and the ripple effect on the shipping and logistics industry has arguably highlighted the need less expensive and more environmentally friendly vehicles. As more people shop online rather than at a physical location, last-mile delivery providers are increasing their investments in electric alternatives throughout the supply chain.
Digital purchases are made with the click of a button, but the physical product often has to be delivered by commercial vehicle. Most often, this delivery service does not use an electric option. However, business leaders should focus their spend analysis on vehicles that get their power from the grid, not the pump.
According to a recent report by Research and Markets, the global electric utility vehicle market is will increase from 353,000 units in 2022 to 3,144,000 units by 2030 – a CAGR of 31.4%. From a consumer perspective, it is the last-mile delivery sector that the report says will benefit the most from the shift to electric vehicles. In fact, suppliers who focus on a delivery range of less than 150 miles should take advantage of next-generation commercial vans and trucks.
The green future is now
CNN reported that the US Postal Service has confirmed that at least 40% of its new delivery vehicles will be electric, with the agency pledging to buy 33,800 vans by the end of the year. About 25,000 of these delivery vehicles will be designed specifically for the Postal Service’s very specific needs, with the rest being “off-the-shelf” versions from automakers such as Ford, Mercedes-Benz and Rivian.
The latter has already received a boost from Amazon, which has started rolling out bespoke electric delivery vans across the country. The e-commerce giant has been extremely vocal about its commitment to the environment and its plans, according to a statementto have 100,000 Rivian vehicles on the road by 2030. Amazon has been testing the performance capabilities of these trucks since 2021, racking up more than 90,000 miles and delivering more than 430,000 packages, the company said.
Not to be outdone, Walmart is also getting into the sustainable last-mile delivery game. The retailer announced that it will buy 4,500 electric delivery vehicles of Canoo, all of which will be integrated into Walmart’s existing retail fleet. About 90% of the US population lives within 10 miles of a Walmart store, so the company’s ability to offer eco-friendly, same-day delivery service for its e-commerce customers is a big deal. strategic advantage, the company said.
The shift from gas-powered to electric cars is nothing new – Tesla launched its first production model in 2008, for example – but the increased adoption of utility vehicles that not only offer packages but also environmental benefits could game changer in the supply chain. . The cost savings that come with a rechargeable battery as opposed to a fuel tank are only part of the equation, as is the fact that electric vehicles are eligible for federal and state tax incentives. And while there will always be people who are hesitant to go green, the simple truth is that last-mile delivery options will benefit from being sustainable.