American UPS ordered 10 thousand electric vehicles

American UPS ordered 10 thousand electric vehicles

January 30, 2020 0 By autotimesnews

The American company engaged in express delivery and logistics of goods, in order to compete with Amazon, seeks to reduce its costs.

Representatives of United Parcel Service on Wednesday said they had ordered 10,000 electric trucks for delivery from the British company Arrival Ltd. Partnership with Waymo startup was also announced as the carrier is working to cut costs and lower their car emissions.

The terms of the contract include the purchase by UPS of a stake in Arrival, as well as the supply of 10 thousand electric vehicles by 2024. The official amount of the contract is not called, but the British The Guardian estimates the deal at 400 million euros.

 “UPS is a strategic partner of Arrival, we receive important information about how electric trucks are used in operations and how to make them convenient for drivers. Our teams worked together to create a special version based on our platform (skateboard), which meets the requirements of UPS for driving, loading and unloading cars, working in warehouses and in back offices, ”said the founder of Arrival.

Next month, a 6-month test will begin on UPS with Waymo, an independent division of parent company Google Alphabet Inc. UPS will pay Waymo to use the Chrysler Pacifica autonomous minivans to deliver packages from UPS Phoenix stores to the nearest sorting center several times a day.

Amazon’s growing delivery network is putting pressure on UPS and competitor FedEx, which are looking to make more profit from the growing supply of goods ordered online.

Arrival trucks have a modular design that promises to be cheaper to assemble, maintain and configure. Vehicle components can be replaced in 15 minutes or even faster. For example, the left and right headlights are the same and can be installed in a truck of any size, “almost like building a Lego,” said Scott Philippi, senior director of vehicle maintenance and design at UPS.

Not so long ago, AutoTimesNews wrote that Korean Hyundai and Kia are also investing in Arrival startup. They announced a partnership agreement with British technology startup Arrival, which involves an investment of 100 million euros. This money should go to the development and creation of electric freight and passenger minivans for logistics services and fleets of companies providing passenger transportation services. Thanks to such an injection, Arrival is valued at 3 billion euros.