With rising environmental concerns, most operators in the Couriers & Local Delivery Services industry have begun to electrify their fleets in an attempt to reduce their carbon footprint:
- United Parcel Service (UPS) placed an order for 10,000 electric vehicles, which will be delivered between 2020 and 2024.
- Amazon Inc. (Amazon) invested in start-up Rivian, a manufacturer of electric vehicles for its own delivery fleets, and has placed an order for 100,000 custom electric vehicles.
- One-fifth of Deutsche Post’s (DHL) fleet consists of zero-emissions vehicles.
- FedEx Corporation received its first batch of electric delivery trucks in December 2021. It also set a goal of replacing the entirety of its fleet with battery-powered vehicles by 2040.
USPS steers away
In February 2021, the US Postal Service (USPS) announced it would be purchasing 150,000 next-generation delivery vehicles, manufactured by Oshkosh Defense. While these vehicles provide many new features, controversy arose as USPS stated that only 10.0% of its order would be electric.
USPS’s new vehicles are expected to be able to travel up to 8.6 miles per gallon (mpg), a slight upgrade from its current 8.2 mpg. As a result, the Environmental Protection Agency (EPA) and the Biden Administration urged USPS to reconsider the deal due to environmental concerns and a commitment toward a net-zero emissions future.
Conversely, USPS stated that the process of acquiring more electric vehicles would be too costly since it receives no tax dollars for operating expenses, and relies on the sale of its products and postage to generate funds. Furthermore, it claimed that its new vehicles can achieve up to 14.7 mpg if the air-conditioning is inactive and that the vehicle size will enable the same delivery capacity in a shorter time.
Concerns from States
USPS’s decision led to three separate lawsuits filed against USPS by 16 state governments and environmental groups from New York and California, stating that the USPS is failing to comply with basic requirements set by the National Environmental Policy Act.
As of June 2022, Postmaster General Louis DeJoy pledged to increase the number of electric vehicles as its financial conditions improve. Currently, 20.0% of its first order of 50,000 vehicles is expected to be electric, with production beginning in 2023.
Furthermore, a spokesperson for Oshkosh Defense stated that any modification to increase the number of electric vehicles produced is not expected to affect its production schedule, enabling USPS additional flexibility down the line.
Alternative solutions
While USPS will continue reevaluating its next-gen delivery production, it is quietly testing alternative options to improve sustainability.
Currently, USPS is rolling out electric bikes in Florida. These bikes contain a rear box that can contain up to 400 lbs of mail and are fully battery-powered 500Wh units, providing another environmentally friendly solution in neighborhoods and urban areas.
Similarly, the car rental industry has also contended with the switch to electric vehicles.
