FedEx receives first batch of EVs from GM-owned BrightDrop

• FedEx received the first five all-electric vans from an order of 500

• FedEx placed an order with BrightDrop for 500 EV600 commercial vans in January 2021

In its efforts to de-carbonize its operations, logistics company FedEx received the first five all-electric vans from General Motors-owned BrightDrop from an order of 500.

FedEx placed an order with BrightDrop for 500 EV600 commercial vans in January 2021, becoming its first big customer. FedEx Express’ total fleet comprises 87,000 vehicles.

The incentive towards going green has been triggered by cost-cutting and investor support.FedEx said an electrified fleet would cut maintenance costs in half. CNBC reported that BrightDrop estimates the cost to charge an EV600 was approximately 75% less than fueling a gas-powered truck. The logistics giant also hopes to get the attention of ESG investors. 

Also Read: FedEx drops 10%, most in 18 months as labor shortage and higher wage hit earnings

The EV600 vans can go as far as 250 miles on a full charge and can carry up to 2,200 pounds. The vans will start delivering packages in Los Angeles in 2022.

FedEx targets to make its operations carbon-neutral by 2040 by using renewable energy, carbon offsets, and EVs, and in March set aside an initial $2 billion for the same.

The EV race

The competition among EV trucks manufacturers is growing. EV start-up Rivian was the first carmaker to introduce an electric truck, funded by Amazon and Ford Motors, to the consumer market, beating off Tesla, General Motors, and others. The company is supposed to develop the electric pickup truck by next year.

Also Read: EV startup Rivian starts first-ever electric truck production

GM is expected to launch the GMC Hummer EV pickup this autumn, followed perhaps next year by EV start-up Lordstown Motors, Ford, and Tesla, which just delayed deliveries of its Cybertruck from this year to late 2022.

Japanese carmaker Toyota Motor Corp has also committed 8 trillion yen, which is around $70 billion, to electrify its automobiles by 2030, half of it to develop a fully electric lineup, to tap on a growing market for zero-emission cars.

In the COP 26 summit held in November, six major carmakers, including GM and Ford, signed a pledge to phase out fossil fuel cars by the next two decades.

Also Read: GM to invest $3 billion to ramp up EV production

Also Read: COP26: Long way ahead for zero-emission vehicles despite national leaders’ pledge for EV push

Inputs from WSJ

Picture Credits: FT