The global pandemic of 2020-21 has surged the demand for home delivery of all types of products and services as America doubles down on the safety and ease of door-to-door conveniences.
This mega-trend is sweeping through the worlds of e-commerce and logistics just as electric vehicles evolve into larger capacities with lower operating and acquisition costs.
The global last-mile delivery market size is projected to reach $66 billion by 2026, from $39.6 billion in 2020, at a CAGR of 8.9% during 2021-2026, according to Valuates Reports.
Here to Stay
In addition to demand for just-in-time delivery and services, major drivers of this market include technological advances, wider internet usage, and expanded e-commerce, as brick-and-mortar businesses as well as digital-based ones pursue the local delivery market.
And while unemployment remains above norms, many working consumers who are saving money while stuck at home during the pandemic are willing to spend more on the convenience and safety of doorstep service. Many of these habits and expectations are likely to become permanent within the U.S. as well as globally.
In tandem, logistics and e-commerce companies need to lower shipping and overhead costs as they scale up to the demand. Electric vehicles can forge the path to this next phase because they are efficient and adaptable to all types of new technology.
Plug-in electric cars (battery-electric and plug-in hybrid) have grown by at least 21% in 2020, proving their potential to meet the future market needs that the pandemic now has forced into the near-term, according to electric & hybrid vehicle technology international. While Europe and China remain further along than the U.S., that only means the U.S. domestic market packs more pent-up demand. In fact, ecommerce still represents only about 15-18% of all retail purchases, indicating strong potential growth in the last-mile delivery market.
ELMS Rides Into The Breach
ELMS is focused on delivering cost-effective commercial electric vehicles with a full suite of telematics and data analysis options, along with customer-specific cargo management systems.
The ELMS Urban Delivery Van, anticipated to be the first Class 1 EV in the market and scheduled for production in late 2021, is at the front of the electrification of last mile delivery. Here’s why it works for all types of light, last-mile logistics:
- Electric delivery vehicles can easily be charged every night since they are primarily used during the day.
- Because the vehicles leave from the same place in the morning that they return to in the evening, there is plenty of time to charge and you only need charging infrastructure in one location.
- Efficient charging routines require smaller batteries and Level 2 chargers, which can save on a fleet operation’s infrastructure costs.
- Last-mile deliveries often occur on fixed routes or in prescribed areas and do not involve long haul or interstate trips. That makes it easier to efficiently plan usage, energy consumption, and schedule charging for off hours—maximizing productive uptime.
- EV fleet operators benefit from fuel cost savings, declining energy costs and fewer maintenance requirements. The costs of lithium-ion and solid-state batteries are expected to decline this decade while their reliability strengthens, which can only make electric vans even more viable and appealing with each passing year.
The average daily range usage for Class 1 vehicles is about 40-60 miles. With a range of 150 miles, the ELMS Urban Delivery van is well suited to this delivery market in which the routes are local, planned, and routine. Some key stats:
- Cargo Capacity: 170 cu.-ft.
- Range: 150 miles
- Wheelbase: 120 in.
- Curb weight: 3,329 lbs.
- Max payload: 2,403 lbs.
An ELMS van has a $32,500 MSRP but can cost an operator $25,000 after federal tax credits, a price comparable to similar ICE vehicle models that allows customers to save on operating costs from day one. Furthermore, there are various state level incentives that can be used in combination with the federal credits, making the purchase price value proposition potentially even more appealing. Your fleet management company (FMC) or an ELMS dealer can provide more information about possible tax or other government acquisition credits.
ELMS will also provide a suite of digital solutions, as well as upfitting services to deliver low-cost electric vehicles that are tailored to customers’ specific needs and duty cycles.
Overall, the ELMS Urban Delivery Van is designed to provide the most affordable, reliable, and customized solution for the last mile delivery of goods and services. ELMS is jumping the curve with proven technology and a production advantage, and its recent announced merger with a special purpose acquisition company (SPAC) called Forum Merger III Corporation will further accelerate its go-to-market plan as its publicly traded shares generate capital for growth.
ELMS estimates the market for urban delivery vans will double over the next five years, reflecting a likely permanent shift in consumer purchasing patterns, even when the pandemic subsides. Now is the time to plan for the electric future.