Startups with electric vans race to fill demand for zero-emissions delivery

startups-with-electric-vans-race-to-fill-demand-for-zero-emissions-delivery
Startups with electric vans race to fill demand for zero-emissions delivery

A number of delivery startups in Europe and the US are in a race to provide zero-emission, electric last-mile deliveries in cities to retailers and consumers before major shipping companies do the same. These startups, including Liefergrun, Zedify, Packfleet, and DutchX, are capitalizing on retailers’ need to meet environmental and emission-reduction targets. They have collectively raised approximately $1 billion in funding. While industry leaders like FedEx, Deutsche Post DHL Group, Amazon, and United Parcel Service have set their own targets for zero-emission fleets, the startups aim to capture market share during the lead-up to these goals.

These small but rapidly growing startups are using their own routing technology for urban and suburban deliveries. However, they face the challenge of scaling up while keeping prices competitive in a crowded market. Additionally, they may become acquisition targets as they expand. Niklas Tauch, CEO of Liefergrun, emphasized the importance of not increasing prices for sustainable delivery, as customers are unwilling to pay more. Liefergrun has seen significant growth and expects its revenue to increase sevenfold this year.

Delivery giants are also investing heavily in electrifying their fleets. DHL plans to switch to 100% zero-emission last-mile e-commerce deliveries in the Netherlands by the end of this year, with other markets to follow. Packfleet, a UK startup, has experienced tenfold revenue growth and plans to expand its fleet to 400 electric vans in London by 2024. The company aims to be present in the top 20 UK cities within two years.

Europe has proven to be a more fertile ground for zero-emission package deliveries, but DutchX is launching a new service in New York to bring loaded containers into Manhattan by ferry and then use electric cargo bikes for city deliveries. The company’s revenue is expected to rise by more than a third this year, and it plans to expand to Philadelphia and other US cities.

Logistics companies and customers are facing increasing pressure to reduce emissions, with some retailers setting ambitious targets for zero-emission deliveries. Startups in the industry face challenges in scaling up, as they often use smaller vehicles that squeeze profit margins. However, regional companies can still succeed in the market. Established carriers like FedEx, UPS, and DHL are closely monitoring these startups and may consider acquiring them for their innovative services.

Zedify, a UK electric cargo-bike delivery startup, operates in multiple cities and delivers packages for large firms like FedEx. The company plans to expand to more cities, which will result in national contracts from retailers and a significant increase in deliveries. Zedify aims to be present in nearly 50 UK cities with 100,000 or more residents within four years.

In conclusion, the zero-emission delivery startup sector is rapidly growing as companies strive to meet environmental targets. These startups face the challenge of scaling up while keeping prices competitive, but they have the potential to disrupt the market and attract the attention of established carriers.

About News Team

Hi, I'm Alex Perez, an experienced writer with a focus on lifestyle and culture news. From food and fashion to travel and entertainment, I love exploring the latest trends and sharing my insights with readers. I also have a strong interest in world news and business, and enjoy covering breaking stories and events.

Have a tip we should know? tips@rhd.news

Most Read

  1. News
    Pandora Papers Financial Leak Shows Us the Secrets of the World’s Rich and Powerful
    3 years ago
  2. Health
    US Supreme Court Rejects J & J TALC Cancer Case Appeal
    3 years ago
  3. Lifestyle
    9 Habits that Drain your Daily Focus and How to Avoid Them
    3 years ago
  4. BUSINESS
    Women’s Demand for Shapewear – the big Trends
    3 years ago
  5. BUSINESS
    Valentino Launches its Cosmetics Line
    3 years ago
  6. Health
    US Promises to Share 60 million Doses of AstraZeneca Vaccines
    3 years ago
  7. Health
    UK Offers Aid Amid Surging COVID-19 Cases in India
    3 years ago
  8. Sports
    Thousands of fans welcome Charlton funeral cortege at Old Trafford
    7 months ago
  9. News
    Brit left fighting for life after train derails in Argentinia
    7 months ago
  10. BUSINESS
    Dubai faces down airline rivals with $50 bln jet orders
    7 months ago
  11. Sunak
    UK’s Sunak brings back Cameron, sacks Braverman
    7 months ago
  12. Sports
    Man United’s Hojlund, Eriksen withdrawn from Denmark team duty
    7 months ago
  13. Health
    Autumn Sneezing Syndrome is on the rise… here’s what you can do
    7 months ago
  14. Canada
    Canada beat Italy to win Billie Jean King Cup for first time
    7 months ago

Follow @rushhourdaily: