“Not your father’s logistics company” – a new-age logistics start-up is changing the face of last-mile logistics with an all-electric vehicle fleet. Looking at the volatile fuel prices and the increasing demands for last-mile delivery, the logistics firm’s move towards electric vehicles appears a resourceful solution in the face of sustainability challenges.
The company majorly operates in densely populated areas where the nature of delivery routes – with a shorter route distance and regular stops – makes electric vehicles highly efficacious. This start-up claims a significant drop in costs associated with each delivery due to the shift from ICE-powered vehicles to electric van and two-wheelers. The estimated cost of delivery has gone down by 25 to 30% as estimated from their own calculations based on reduction in fuel and maintenance costs.
One of the major strengths of EVs is that their cost of operation is much lower. The kilometeraggregated cost of electricity is much lower than that of diesel or petrol. Further, EV requires less maintenance and has longer lifecycles than conventional cars. The start-up has also collaborated with charging station companies so that charging stations are created near their storage facilities so that everything functions on a day-to-day basis without hiccups.
In addition to the financial benefits, the electric vehicle fleet has assisted the startup in increasing the efficiency of delivery. Electric vehicles are noise-free and more preferable for night delivery or early morning delivery. Moreover, electric vehicles provide the benefit of smooth driving. This has assisted the startup in increasing the level of driver satisfaction, and the company can confidently state that the level of driver satisfaction has been significantly boosted with the advent of electric mobility.
The trend seems to fit well into the pressure being experienced by logistics providers to lower carbon emissions. The fact is that delivering in urban settings is the largest source of pollution in cities, and the regulatory bodies in several cities in India are pushing logistics providers to look for cleaner solutions to the problem. The startup is therefore future-proofing itself through the adoption of EVs.
Technology is a crucial factor that makes the EV model feasible. Route-optimization software, which relies on AI, is employed by the company to reduce the distance covered as well as the use of less energy. Real-time battery charge indicator systems also assist the company in planning routes according to the battery charge, which enables vehicles to continue making deliveries without any interruptions. Predictive analysis is also utilized by the company.
The initial outgo for the electric vehicles continues to remain on the higher side, but the startup considers this a long-term investment. With the help of government subsidies, the cost of purchasing the electric vehicles has begun to favor the startup, and they can still regain the cost of the initial outgo in two to three years.
The success of the start-up has attracted the attention of prominent players in the e-commerce market, as well as retail chains wanting to make their supply chains more environmentally friendly without incurring increased logistics costs. Several enterprise customers have already entered into long-term agreements based on cost savings as well as reasons of sustainability reporting. “Sustainability pressures on brands in terms of ESG goals make partnering with us, as an EV-driven logistics company, an attractive option,” he explained.
Going forward, the firm intends to extend its electric vehicles range to tier-2 and tier-3 cities, which are witnessing a surge in delivery orders. In addition, the firm is exploring the electric truck-based logistics segment for mid-mile delivery and testing the model of battery swapping, which will help in cutting down charging time. With advancements in electric vehicles, the firm believes that electric logistics will soon be the rule, not the exception. With the increasing competition that the logistics industry faces, this EV-based model shows how innovation, sustainability, and cost-effectiveness can be combined. The business model of this startup company provides a useful template for the kind of deliveries that cities can expect for the future: cleaner, cheaper, and smarter.
