UPS answers FedEx with an electric investment of its own.

UPS answers FedEx with an electric investment of its own. 

The short version: 

  • UPS has agreed to purchase 10,000 electric delivery vans from startup company Arrival. 
  • The vans will be delivered between now and 2024. 
  • UPS also has the option to purchase 10,000 more during that time frame. 
  • UPS is also investing an undisclosed amount into Arrival. 
  • The delivery vans have a purchase price roughly the same as ICE vans, but cost half as much to operate. 
  • Arrival’s “micro-factory” strategy played a role in the decision, as factories could be setup near UPS hubs. 

According to the article, there are over 300 million commercial vans and trucks on the road. That’s 300,000,000. The Amazon and UPS orders combined come to 20,000. For those of you who don’t have a calculator handy, that’s .00667% of the commercial fleet. I’m a big believer that you have to start somewhere, but I have to admit that I’m having a hard time getting excited about this number. I know, I know, you can’t get to 50% without first getting to .5%. Baby steps.


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Posted by Jobindi

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