In December, FedEx received its first five electric light commercial vehicles from BrightDrop, General Motors’ (GM) electric delivery and logistics business. They were part of an order of 500 vehicles, and must have proved up to snuff for FedEx — because the delivery services giant has plans to order many more.
FedEx has signed an agreement with BrightDrop that reserves priority production for another 2,000 electric delivery vans — in addition to the initial 500 — and is set to add up to 20,000 more in the following years, pending further negotiations and execution of a definitive purchase agreement.
The announcement is tied to FedEx’s goal to become carbon neutral by 2040, a $2 billion effort that was announced in March and involves purchasing thousands of electric ground vehicles.
“FedEx remains full speed ahead in taking the next steps to electrify our pickup and delivery vehicle fleet, which is a critical component in our ambitious goal to achieve carbon-neutral operations globally by 2040,” said Richard Smith, FedEx Express EVP and regional president of the Americas, in a press release. “With the collaboration and innovative technology of companies like GM and BrightDrop, we will continue to meet the world’s increasing transportation needs in more environmentally sustainable ways for our customers, shareholders, and communities.”
Called EV600s, the vans from BrightDrop are zero-emission vehicles designed to deliver goods and services over long ranges, and have safety and convenience features more common in consumer electric cars. Powered by the Ultium battery system, each has an estimated range of up to 250 miles on a full charge, more than 600 feet of cargo space, a 3.4-inch-diagonal infotainment screen, front sliding pocket doors, wide cabin walkways, a cargo area security system with motion sensors, and a large cargo bulkhead door that opens automatically.
In addition to the EV600, FedEx is also working with the EP1, another BrightDrop product, which it’s currently piloting. A propulsion-assisted electric pallet that can move goods over short distances, the EP1 is designed to reduce package touch points, costs, and physical strain on drivers.
According to the release, a Toronto-based pilot of the device saw a 25% increase in package deliveries per day. Another pilot, in New York City, helped FedEx Express couriers increase package deliveries by 15% per hour. The company plans to expand EP1 testing to 10 markets in 2022.
FedEx isn’t BrightDrop’s only major customer. In the release, the business also announced that Walmart had signed an agreement to reserve 5,000 of BrightDrop’s EV600 and smaller EV410 electric delivery vans — set to be available in late 2023 — to support its growing last mile delivery network.
Like FedEx, Walmart hopes to be carbon neutral by 2040.
