ELECTRIC VEHICLES TO BE THE FUTURE OF THE DELIVERY SEGMENT

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Green energy products require penetration in multiple market sectors to widen their accessibility and acceptance by the citizens. E-commerce players have been planning to power deliveries using electric bikes and scooters. Last-mile logistic providers and third-party logistics companies are considering infiltrating the distribution segment through EVs. Since EVs guarantee a greener approach, companies have been pushing the idea towards a B2B model.

Electric vehicles reiterate the goal of making India a powered economy by 2030. Statistics suggest that Indians have purchased 26 million new fuel-based automobiles in the period ranging from April 2018 to March 2019. The public transportation sector is inefficient, and the demand for cleaner transport has been transpiring. Therefore, electric ride-hailing companies like Zypp entered the business to provide a greener, more convenient, and comfortable option to the commutation setback arising from micro-mobility.

The ride-hailing model has been gaining traction among millennials. However, inadequate infrastructure and incumbent policies are challenging budding start-ups to proliferate. Jeff Bezos’ recent announcement regarding the incorporation of greener vehicles in Amazon’s delivery fleet compelled companies to think twice about their approach.

What obstructs the transition?

The urban challenges pertain to pollution and harmful emissions. Indian roads choke on carbon emissions, and citizens fry their lungs with smoke. Amidst these trying times, companies have identified the scalability of EVs into last-mile urban freight and deliveries. Corporate social responsibility obligates companies to understand the damaging effects entailed by covetous activities. The idea highlights that the welfare of the citizens and the achievement of lower costs can be aligned.

The transition, however, is accelerating with stricter emission policies and sound technological updates. The underlying strategy of introducing EVs into the delivery segment is to set an example for citizens. Citizens amass ambiguity when change wavers on the doorstep. Therefore, it is the responsibility of companies that reside on the topmost rung of the ladder to gain the confidence of the masses and induce transition.

What lies ahead for India?

India, with its bustling economy, holds the potential of transforming into the largest EV market. With last-mile logistics in the mix, joint mobility can advance. When the idea catches up, investments in the sector will boost, and Indian roads will scream clean energy. However, with the absence of power stations, the transition might get delayed. Nonetheless, companies have found a way around. Lithium powered batteries induce electric bikes and scooters to run up to 84 km upon charging. Updates and technological innovations are being instituted continuously to improve the capacity of the cells.

Reports have conceded that most EVs are affordable at current prices. Electric bikes and scooters with a simple carrier installation can be converted into viable and cost-effective delivery vehicles. The paradigm shift has enabled green energy to run its course until something cheaper and more efficient is discovered. Companies such as BigBasket are in talks with companies producing EVs. The contract mentioned above entails a complete delivery fleet assembled for the company.

Moreover, green energy has been liberating citizens in the following ways

  • Unshackle the buyers from high-end maintenance costs
  • EVs are cheaper on the pockets of the taxpayers in the ride-hailing model
  • Curbs congestion through an eco-friendly approach
  • Facilitates last-mile logistics for companies in an eco-friendly manner
  • Companies are renting EVs to firms who cannot afford a private delivery fleet
  • Assisting citizens to transition from a phase of smoke and emissions.

Companies, while promoting the interests of their stakeholders, can improve the local environment, thereby playing a pivotal role in transforming the present scenario environmentally. EVs, when imagined, was a dream and now, have altered into reality and will go a long way.

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