UPS has ordered 10,000 purpose-built electric vans worth hundreds of millions of pounds from UK-based Arrival.
Also, UPS’ venture capital arm has made an investment in Arrival of an undisclosed amount.
The initial 10,000 vehicles will be rolled out in the UK, Europe and North America from 2020 to 2024 with the option to purchase a further order of 10,000 vehicles.
- UPS orders hundreds of millions of pounds worth of bespoke purpose built electric vehicles from Arrival, accelerating UPS’ transition to a zero emissions fleet. Today’s initial order of 10,000 vehicles will be rolled out over 2020-2024 with the option for a further order of 10,000
- Arrival’s technologies create purpose-built electric delivery vehicles that exactly match UPS’s specifications. UPS and Arrival have co-developed the vehicles which include the latest advanced control and safety features
- Arrival’s Generation 2 Electric Vehicles are a new category of electric vehicles that surpass traditional vehicles in cost, design and efficiency with 50% operational cost savings for fleet owners
- Arrival has invented a new method of assembly using low capital, low footprint microfactories located to serve local communities and profitable from thousands of units
The vehicles will be built using Arrival’s new method of assembly using low capital, low footprint microfactories located to serve local communities and profitable from thousands of units.
Arrival first announced a partnership with UPS to develop electric vehicles in 2016 with today’s vehicle order and investment accelerating the deployment of fit for purpose electric fleets at scale.
Arrival’s unique Generation 2.0 electric vehicles offer UPS compelling commercial and environmental benefits to make a seamless and cost effective transition to a zero emissions fleet.
Denis Sverdlov, Founder and CEO of Arrival says: “UPS has been a strong strategic partner of Arrival, providing valuable insight to how electric delivery vans are used on the road and how they can be optimised for drivers.
“Together our teams have been creating bespoke electric vehicles, based on our flexible skateboard platforms, that meet the end-to-end needs of UPS from driving, loading/unloading, depot and back office operations.
“We are pleased that today’s investment and vehicle order creates even closer ties between our two companies.”
Carlton Rose, President of UPS Global Fleet Maintenance & Engineering says: “Our investment and partnership with Arrival is directly aligned with UPS’s transformation strategy, led by the deployment of cutting-edge technologies.
“These vehicles will be among the world’s most advanced package delivery vehicles, redefining industry standards for electric, connected and intelligent vehicle solutions.”
Arrival has developed components, sustainable materials and software to customise both vehicles and operations of commercial fleet owners.
The company’s unique ‘skateboard’ platforms enable the creation of vehicles in any weight, type, size and shape to match customer requirements, which are then deployed close to areas of demand across the globe in Arrival’s microfactories.
Avinash Rugoobur, Chief Strategy Officer at Arrival says: “Arrival has created Generation 2 electric vehicles that are better in price, design and experience than traditional fossil fuel vehicles and existing EVs.
“This gives fleet managers a highly compelling commercial and environmental reason to switch to electric and will accelerate the adoption of electric technology globally.
“At Arrival, we believe this is amongst the most impactful areas to start the transition to a fully electric future, and our partnership with UPS will drive us both towards our shared vision of cleaner mobility.”
Juan Perez, Chief Information and Engineering Officer, UPS says: “UPS continues to build an integrated fleet of electric vehicles, combined with innovative, large-scale fleet charging technology.
“As mega-trends like population growth, urban migration, and e-commerce continue to accelerate, we recognize the need to work with partners around the world to solve both road congestion and pollution challenges for our customers and the communities we serve.
“Electric vehicles form a cornerstone to our sustainable urban delivery strategies. Taking an active investment role in Arrival enables UPS to collaborate in the design and production of the world’s most advanced electric delivery vehicles.”
With over 300m vans and trucks on the road worldwide fuelled by petrol or diesel, the commercial vehicle segment is a major contributor to transport emissions as well as the fastest growing vehicle segment.
The rise of e-commerce has contributed to this increase; over the past decade the number of parcels delivered per day in New York city alone has quadrupled to 1.5m while van mileage in the UK has grown 56% since 2000.
The opportunity to significantly impact climate change, coupled with predictable routes and overnight depot charging, make commercial vehicles perfectly suited to seamlessly switch to electric.
Arrival is a technology company that has created Generation 2 Electric Vehicles – a new product category which surpasses existing vehicles in cost, design and efficiency.
Arrival has developed software, components, sustainable materials and modular ‘skateboard’ platforms to enable Generation 2 vehicles.
Purpose-built vehicles of any weight, type, size and shape are produced from Arrival’s platforms and assembled by microfactories.
Each low footprint microfactory produces any vehicle on demand and is located to serve local communities. They are profitable from thousands of units and can be deployed within 3 months.
Arrival’s vehicles are priced the same, or less than, current fossil fuel vehicles, making the decision to switch to electric inevitable, and increasing the adoption of electric technology globally.
With 300m commercial vehicles in the world, this will have a huge impact on people, business and the planet.
Founded in 2015, Arrival has over 800 people globally and is headquartered in London, UK, with offices in Germany, Netherlands, Israel, Russia and the US.
Find out more: arrival.com
UPS (NYSE: UPS) is a global leader in logistics, offering a broad range of solutions including transporting packages and freight; facilitating international trade, and deploying advanced technology to more efficiently manage the world of business.
Headquartered in Atlanta, UPS serves more than 220 countries and territories worldwide. UPS was awarded America’s Best Customer Service company for Shipping and Delivery services by Newsweek magazine; Forbes Most Valuable Brand in Transportation; and top rankings on the JUST 100 list for social responsibility, the Dow Jones Sustainability World Index, and the Harris Poll Reputation Quotient, among other prestigious rankings and awards.
Find out more: ups.com