For the past 2 years, more people have bought things on line that ever before and carriers such as Amazon need to deliver the goods to homes and businesses. To deliver the packages, vans are needed and it used to be the Postal Service took most of the vans but private companies are in the business of packages. All the companies use vans to deliver packaged goods.
In an article by Karen Weise and Neal E Boudette of the New York Times News Service, Amazon has an instiable appetite for electric vans thanks to a ballooning logistics operation and a pledge that half of its deliveries will be carbon neutral by 2030.
The reality is Amazon has signed many contracts which is good, the bad news is there are few deliveries, but there are promises to be met. Rivian Automotive has a contract for 100,000 vehicles, Dodge Ram has orders for thousands, Daimler (think Mercedes) has an order for 1,800 Sprinter vans. In India, Amazon has formed a partnership with Mahindra & Mahindra for 10,000 electric 3 wheel vehicles by 2025.
At the moment Amazon has 175,000 vans according to Ross Rachey, who oversees Amazon’s global fleet.
According to data from MWPVL, a logistics consultancy, Amazon now delivers 50% of its orders globally and has 6 times as many delivery depots now than in 2017, with at least 50% more new facilities set to open in 2022.
Delivery vans are well suited to electric propulsion because they usually travel 100 miles or under in a day which means they do not need the large battery packs. The trucks can be charged overnight, due to the fewer parts in electric vehicles the maintenance budget is less.
Mr. Rachey said Amazon is building the largest EV fleet and charging network in the world.
Linking to dividend paying stocks, companies such as Amazon have the ability with the help of van building companies to lower their cost of fossil fuels and stay very competitive in the marketplace. Fossil fuel or crude oil prices are expected to be in the $100 barrel of oil which is expensive for the economy and a company, how does it lower costs – goes electric and stays competitive. It is sometimes easier for a profitable company to change because of costs.
There are more questions than answers, till the next time – to raising questions.