Are Electric Vehicles Viable in the Package Delivery Industry?

Electric vehicles (EVs) are a hot topic in today’s consumer market. Many cities and states, particularly on the east and west coasts, are edging ever closer to lowering emissions and adopting a more electric vehicle-friendly environment. But what does this have to do with the commercial truck space? 

We get asked all the time, What about electric delivery trucks? Are they viable in the package delivery industry? 

Electric delivery vehicles are very much here now. FedEx Ground vowed to be fully carbon neutral by 2040. EVs will certainly be a big part of that initiative. What seemed like a distant goal is now a real conversation amongst contractors and EV vendors. More states are beginning to offer grants and incentives for electric vehicles. These grants are currently essential for the financial viability of EVs, but that will change over time as production costs continue to decrease. 

So, what is the value of operating an electric vehicle instead of a combustion engine vehicle? 

The long-term answer is the benefit to the environment. Electric vehicles do not have carbon emissions like combustion engines, and they are better for the health of our air and the environment around us.

The practical value is that they are cheaper to maintain and operate. Electric vehicles have fewer fluids and moving mechanical parts than combustion engines and do not require gasoline or diesel fuel. Imagine not having to pay for fuel anymore. Imagine not having to pay for spark plugs or get an engine oil change anymore. Electric vehicles will change the way we do business. 

Barriers to Overcome 

With new technology also comes growing pains. The integration of electric vehicles into the last mile delivery network will not happen overnight, and it will take time for cost-effective solutions to become available in every state. However, some markets are beginning to adopt electric commercial vehicles today. 

FedEx Ground has already begun integrating all-electric facilities into the network in states such as California and New York. 

There are logistical hurdles yet to overcome, even beyond the cost gap. Each terminal can house at least 150 vehicles or more. Finding a cost-effective way to charge all those vehicles in every terminal across the country will take more years to fully figure out. For very rural, high-mileage territories, vehicle range could become a significant factor until the effective range of EVs improves. 

Electric vehicle vendors are also working hard to find creative charging solutions to bridge the logistical gaps sooner rather than later. Companies like Xos, Inc. are at the forefront of integrating electric vehicles into FedEx Ground fleets across the country. 

Outlook

Route Consultant looks forward to integrating electric vehicles into our contracting operations as soon as possible. We are already in the process of integrating EVs into our fleets, where it makes financial and operational sense to do so.

We are also excited to share our experiences and be a part of this changing industry. EVs will open up many new opportunities as the functionality and availability of these vehicles becomes more mainstream. 

We would love to share our insights with you and connect you with experts in the industry who can help you ascertain if and when EVs can be a viable solution for your own organization. 

If you are a current contractor interested in learning more about EVs, Route Consultant’s Contractor Expo is THE best and only place in the United States to comparison-shop all of the newest EV technology, meet the EV vendors servicing FedEx Ground contractors, and get all of your questions answered.

Want to Learn More?

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