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Arrival's prototype electric UPS van. Photo: courtesy of Arrival

UPS is investing in Arrival, a U.K.-based electric truck manufacturer, and plans to buy at least 10,000 battery-powered delivery trucks worth $440 million over the next five years.

Why it matters: UPS is transforming its global logistics business to keep up with exploding e-commerce and increased urbanization — and the fallout from those trends like worsening congestion and climate change.

  • The purchase represents 10% of UPS' current fleet of 100,000 package delivery trucks in the U.S.
  • It more than doubles UPS' worldwide fleet of roughly 10,000 alternative fuel vehicles.

What's happening: UPS said it would take an undisclosed minority stake in Arrival, a company virtually unknown in the U.S. until recently.

  • Arrival has been quietly developing its EV skateboard platform since 2015, emerging last October as a potential rival to another buzzy electric truck manufacturer, Michigan-based Rivian.
  • UPS has an option to buy another 10,000 trucks by 2023, for a total order worth nearly $1 billion, Arrival said.
  • The two companies plan to collaborate on the design and production of future trucks designed to UPS' specifications.
  • Earlier this month, Hyundai and Kia also announced a $110 million investment in Arrival and said they, too, would work together on purpose-built EVs, especially for Europe, where stricter environmental regulations are kicking in.

How it works: Arrival designed its electric vehicles from the ground up to match the cost of gasoline or diesel trucks.

  • It uses lightweight materials and a modular EV base, which incorporates the battery pack, electric motor and driveline components.
  • The company says its EVs provide a range of up to 300 miles for planned routes and a 50% reduction in the total cost of ownership of traditional trucks.
  • The company’s "autonomous-ready" platform is outfitted with sensors and advanced driver assistance systems with the ultimate goal of full autonomy.

The big picture: UPS' interest in Arrival is part of a broader sustainability effort.

  • In recent years, the company has invested more than $1 billion to deploy about 10,000 alternative-fuel vehicles and infrastructure globally, including electric, hybrid, ethanol, natural gas and propane trucks.
  • It is expanding the use of route optimization and navigation software to reduce fuel consumption and emissions.
  • In London, UPS is testing smart-grid technology and energy storage batteries to charge an entire fleet of 170 electric trucks simultaneously overnight.
  • The company is collaborating with cities on innovative last-mile delivery systems like cargo e-bikes in dense urban areas.

Go deeper: Waymo pilot with UPS hints at future autonomous truck plan

Go deeper

At least 3 dead after Amtrak train derails in Montana

Photo: Jacob Cordeiro/Twitter

An Amtrak train derailed near Joplin, Montana, resulting in at least three deaths and multiple injuries to passengers and crew on Saturday, per authorities and a company statement.

The big picture: 141 passengers and 16 crew members were estimated to be on the Empire Builder train, traveling from Chicago to Seattle and Portland, when eight of the 10 cars derailed about 4p.m., Amtrak said early Sunday.

Updated 6 hours ago - Politics & Policy

Federal judge blocks vaccine mandate for NYC teachers

Students are dismissed from the first day of school at PS 133 in Brooklyn on Sept. 13. Photo: Michael Nagle/Xinhua via Getty Images

A federal appeals court is set to hear a challenge Wednesday to a vaccine mandate planned for New York City school employees.

Why it matters The vaccine mandate was set to begin on Monday, prompting concerns over staffing shortages in schools across the nation's largest school system. But a judge on Friday temporarily blocked the measure, per AP.

New York prepares for staff shortages from health vaccine mandate

New York Gov. Kathy Hochul during a news conference Tuesday in New York City.. Photo: Mark Kauzlarich/Bloomberg via Getty Images

Gov. Kathy Hochul (D) announced Saturday she would declare a state of emergency if there were health worker shortages due to New York's upcoming COVID-19 vaccine mandate.

Why it matters: Hochul moved to reassure concerns of staffing shortages in the health care sector in a statement that also outlined plans to call in medically trained National Guard members, workers from outside New York and retirees if necessary when the mandate takes effect Monday.