Jun 5, 2020 - Energy & Climate

Electric delivery vans are having a moment

Ben Geman

The StreetScooter Work delivery vehicle of german electric vehicle manufacturer StreetScooter drives across a street — Photo: Thomas Trutschel/Photothek via Getty Images

Commercial vans are emerging as a key growth area for electrification — and General Motors is developing a vehicle for the sector, according to a Reuters report.

Why it matters: GM's interest shows how a powerful legacy automaker wants in on what Morgan Stanley analysts called "America's hottest new vehicle" in a research note this week.

"Delivery vans have highly predictable routes, conduct high-value services, operate a high utilization and generally stay within a specific geographic area … all of which fits well with EV infrastructure and charging ecosystems which enable their full economic use," they write.

The intrigue: The fledgeling battery-powered van market, like other EV segments, includes both startups and giant automakers.

Amazon, in late 2019, vowed to buy 100,000 electric delivery vehicles from the startup Rivian and hopes to have 10,000 operating as soon as 2022.
Ford announced in March that it's developing an electric version of its Ford Transit cargo van.
UPS is planning to buy at least 10,000 electric vans from the U.K. startup Arrival.

Add Axios on Google

Electric delivery vans are having a moment

What to read next