Startups with electric vans race to fill demand for zero-emissions delivery

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A clutch of European and U.S. delivery company startups is racing to serve the growing market for offering zero-emission, electric last-mile deliveries in cities to retailers and consumers before giant shippers do the same.

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18 Sep 2023

The likes of Germany's Liefergrun, the UK's Zedify and Packfleet, and New York-based DutchX are tapping into retailers' need to hit environmental, social and corporate governance (ESG) and emission-reduction targets. Collectively, zero-emission delivery startups have raised around $1 billion so far, according to Pitchbook and data collected by Reuters.

They hope to grab market share during the long lead times while industry leaders are still gearing up. For instance, FedEx targets 2040 for its zero-emission delivery fleet; Deutsche Post DHL Group says 60% of its delivery fleet will be electric by 2030, the same year that Amazon plans to have 100,000 Rivian electric trucks in service. United Parcel Service expects 40% of its delivery vehicles to run on alternative fuel by 2025.

Using their own routing technology for urban and