Your next parcel delivery vehicle could be an EV

From the newsletter

South African logistics company Special Envoy has launched a courier service that exclusively uses electric vehicles to fulfil its deliveries. Called Xpress, the EV delivery service operates using a fleet of BYD Dolphins to make overnight deliveries. The company’s founder Alex Staniland said the initial rollout has shown strong potential and is planning to expand. 

• Unlike personal vehicles, commercial vehicles on average clock more kilometres daily, and thus their fuel expenditure is higher. Switching to EVs enables logistics companies to significantly cut their operating costs.

• The African logistics market is experiencing steady growth and companies aer expected to add new vehicles to their fleets.

More details

• Xpress began its operations with three BYD Dolphin EVs in its fleet, with more to be added. According to Staniland, the vehicles are customised by removing the passenger and rear seats to maximise parcel space.

• South Africa is seeing a significant uptake of EVs for delivery purposes, particularly in urban centers and for last-mile logistics. Woolworths, a major retailer, was a pioneer in deploying electric panel vans for its online delivery service in partnership with DSV and Everlectric.

• The country’s largest online retailer Takealot has also integrated electric trucks into its delivery fleet. They initially tested and then deployed JAC N75 EV 4-tonne battery-electric trucks in both Gauteng and the Western Cape, in collaboration with Aeversa, which is a JAC Motors EV dealer and fleet specialist Avis.

• In Kenya, leading e-commerce company Jumia has partnered with Biliti Electric to incorporate electric e-Vans into their delivery fleet for last-mile services to reduce delivery costs and environmental impact.

• The use of electric solutions for logistics in Africa is a big business opportunity, and investors are taking notice. ElandX for example seeks to provide a fully integrated electric trucking and charging ecosystem in Sub-Saharan Africa (SSA), with an initial focus on East Africa, including Kenya. 

• Africa is opening up for business, with thousands of new kilometres of roads built annually. This will lead to increased movement of goods across markets. Currently, the majority of vehicles used for logistics run on diesel and petrol. EVs can help companies reduce costs, but challenges remain.  

• The main challenge is that EVs, particularly commercial electric trucks and vans, generally have a higher upfront purchase price than comparable ICE vehicles. This can be a significant capital expenditure for logistics companies, especially for large fleets. Further, setting up adequate charging infrastructure at depots, warehouses, and potentially en-route can be a substantial investment. 

Our take

• As the African logistics market grows, we are set for a rapid diversification of EV types entering the logistics market. While the BYD Dolphin is suitable for small-parcel deliveries, the success of companies like MellowVans (three-wheelers) and the deployment of JAC N75 EV 4-tonne trucks by Takealot illustrate that different EV formats cater to various logistical needs such as last-mile, medium-haul, and refrigerated transport. 

• Increased demand for EVs in logistics will see companies like Everlectric and ElandX become increasingly vital, offering not just the vehicles but also the financing, charging infrastructure and fleet management solutions. 

• The growth of long haul EVs will depend partly on availability of sufficient charging infrastructure, especially on major highways, depots and warehouses. Governments and utilities will be under increasing pressure to upgrade and expand electricity grids to support the growing demand from EV fleets.