Pandemic E-Commerce Surge Spurs Race for ‘Tesla-Like’ Electric Delivery Vans
Delivery fleet operators face regulatory pressure in California and other states to buy electric vehicles, but a surge in package deliveries thanks to coronavirus lockdowns has major firms itching to switch to electric…
Delivery fleet operators face regulatory pressure in California and other states to buy electric vehicles, but a surge in package deliveries thanks to coronavirus lockdowns has major firms itching to switch to electric right now.
And they want far more than just battery-powered versions of diesel- or gas-guzzling trucks and vans.
Fleet operators such as United Parcel Service Inc <UPS.N> hunger for computers on wheels that can harvest data and upgrade safety or autonomous features overnight to save money and boost profit.
“For us, it’s not just about making the wheels turn with a zero-emission vehicle,” said Scott Phillippi, UPS’s senior director of fleet maintenance and engineering, who envisions “Tesla-like” vehicles in the company’s vast fleet. “It’s about an integrated-technology vehicle – and that’s really what we’re pushing for.”
With its ability to send wireless upgrades and fixes to customers’ electric cars, Tesla Inc <TSLA.O> is seen as a bellwether for electrification. Major companies like UPS want to harness that power to bring cost-saving, autonomous or safety measures to their fleets in real time.
If, for instance, a manufacturer developed a feature to prevent a truck from bumping into a loading dock, UPS could have it in tens of thousands of vehicles overnight to prevent expensive dents, Phillippi said.
UPS, Amazon.com Inc <AMZN.O>, and other e-commerce delivery companies are both creating and shaping the emerging market for electric vans and trucks. Economics and competitive advantages created by data will drive the market for electric commercial vehicles.
Demand for electric commercial vehicles is accelerating in part because battery range, long a concern for fleets, has improved dramatically, while battery costs have fallen.
UPS has ordered 10,000 vans from UK startup Arrival Ltd – the majority for the U.S. market – in which UPS also owns a minority stake. Arrival is working on self-driving technology, which is one reason why UPS is supporting the company, UPS’s Phillippi said.
The company has also reserved 125 of Tesla’s long-awaited Semi big rigs, 50 electric trucks from Workhorse Group Inc <WKHS.O> – with an option for 950 more – and is testing electric trucks with California startup Xos.