Last Mile Delivery Leaning into Electric

Commercial vehicle OEM Workhorse began production of its new N-GEN-1000 Battery Electric Vehicle (BEV) van with a 60-kWh battery pack, and a cost closely approaching those with an internal combustion engine (ICE).  The van offers a 100-mile range and Level 2 DC fast charge. UPS has already ordered 1,000 of the vehicles.  Workhorse aimed to produce 2,000 by the end of the year, with plans to grow to more than 10,000 per year.  Ryder Systems will provide maintenance and warranty support in the field.

Ford began assembly of its "Deutsche Post StreetScooter WORK XL" in Germany.  The vans are expected to support Deutsche Post DHL for parcel deliveries and come with an estimated 120-mile range and up to 76-kWh.  Ford plans to produce up to 3,500 annually.

Numerous other companies in the logistics value chain including OEM’s, delivery services, drivetrain manufacturers, and technology providers are diving into this market, from traditional suppliers to start-ups.   New partnerships are being formed and orders are being filled for both test and full duty.  At the same time, new form factors are emerging, beyond continued tests with drones, and BEV’s will begin to provide the foundation for an autonomous future.

Global logistics provider UPS is partnering with Thor Trucks, to develop and test a Class 6 delivery BEV with a 60-kWh battery pack, by the end of this year.  The trucks are expected to have a 100-mile range and will be road tested for six months, before committing to a larger fleet. Chanje, funded by China’s FDG Electric Vehicles Limited, debuted an e-sprinter through Ryder and Mercedes began accepting orders for their own e-sprinter van for late this year with an estimated 100-kWh battery for the new V8100 model.

Tier 1 Bosch is taking this a step further with an EV van rental business, potentially going head-to-head with some of its customer bases.  The company will partner with Germany’s REWE to provide for-hire delivery services for purchases, leveraging StreetScooter vans with Bosch powertrain modules.   The EV company, owned by Deutsche Post independently inked a deal with Ford on delivery vehicles for DHL.

Beyond Freight as a Service as a business, Udelv is expanding its autonomous van deliveries in the San Francisco Bay area with over 1,000 deliveries and selling the vans to an Oklahoma grocer. Backup drivers are required by law during testing, but costs are estimated to be reduced by 50% when backup personnel can be removed.

On a smaller scale, congested urban areas are turning to e-cargo scooters or bikes also known as Light Electric Freight Vehicles (LEFV’s) for “last meter” deliveries.  Other traditional OEMs like VW are bringing these to market next year.  TNT, UPS, and DHL are all assessing and/or trialing these vehicles.

Experimentation continues as well with Pizza Hut and Toyota collaborating on a modified Toyota Tundra, serving as a mobile pizza kitchen via a hydrogen fuel cell electric powertrain and leveraging robotics and a plan for autonomous delivery.

The purchase price of BEV delivery vans is nearing that of medium-duty diesel vehicles for these short-range, “return to base” use cases. UPS and GreenBiz Group conducted a study that confirmed this potential.  However, broader adoption and more vertical usage will depend on additional charging infrastructure, greater fast charging options, and greater standards across brands.  The shelf-life of the vehicle’s battery will be another consideration over time, with decreasing charge capabilities.  Regardless, an autonomous future fully depends on electrification.

On a positive note, EV powertrains are increasing throughout commercial vehicle platform production, especially when compared to only a few years ago. Over the next five years, additional opportunities will include adjacencies from materials to more Tier 1 solutions to new vertical use cases. As battery costs decline (including from manufacturing scale) and performance improves (technology innovation), there will be more successes on the road and less merely prototype hype.