The Rise of Electric Vehicles E-Commerce Logistics
India is ranked among the top 5 countries that are affected by climate change, cities like Delhi have the worst environmental conditions, it won't take long before other cities have similar conditions. The usage of vehicles is a major contributor to this condition, particularly delivery vehicles with increased mobilisation of the population in the city, the consumption of goods is increasing resulting in more delivery vehicles on road to meet the demand.
Businesses are competing to capture this demand, to have an edge over the competition, and remain profitable businesses are switching to electric vehicles for the last mile delivery and cutting down on fuel cost. With this switch businesses are gaining three major advantages: reduction in cost, support from a government initiative, positive brand image since it is helping in reducing climate change.
Importance of last mile delivery
E-commerce sales are skyrocketing and the need for strong last-mile delivery as well. Amazon captured most of the huge market share withtheir lucrative offer of same day delivery and next day delivery, this explains why it's important to have a robust logistics system.
Receiving a call regarding delivery delay after getting “your order is out for delivery” is the most frustrating thing for the customer, scenarios like such are the last thing any loyal customers would like to encounter, which is why last mile delivery is the most important link in the logistics chain.
Businesses are trying to strengthen it, but strengthening it increases the cost so to cut down costs businesses are incorporating electric vehicles in last mile delivery.
Electric Vehicles in Last mile delivery
It is predicted that by 2030 the delivery vehicle on road will be increased by 36% and the emissions will be increased by 32%. With the increasing impact of delivery vehicles on the environment the pressure to go green with logistics for businesses is also increasing.
Benefits of using EV in last mile delivery.
Reduced Maintenance Cost - Electrical Vehicles have lesser moving parts as compared to ICE vehicles hence lower wear and tear and lesser maintenance cost. Core components of EV the battery, motor, and controller require little to no maintenance.
Reduced fuel cost - With increasing fuel price, switching to Electric vehicles helps is significant cost reduction for businesses. The upfront cost of the battery charger looks hefty but in the long run, it plays as a smarter investment.
Government Support - The government is encouraging businesses to incorporate electric vehicles to help reduce pollution by providing subsidies, making battery manufacturing easy in the country, and many other incentives.
Need of EV in First and Second Mile
To effectively combat climate change, businesses also need to incorporate electric vehicles in the first mile and second mile delivery to make an end-to-end zero emission chain. Including Electric vehicles in the first and second mile is tougher as compared to the last mile, due to the increase in transport distance and lack of charging infrastructure. With the support of the government and innovative technologies, it won't be long before the whole logistics delivery chain becomes environment friendly.
While incorporating Electric vehicles in the last mile, many key variables are introduced such as battery life span, fleet management, charging durations, and many others that should be taken into consideration to ensure logistics are managed efficiently. With this switch, it is also important to digitize the management of the whole logistics with logistics management software which makes it easier to observe all importantvariables in a single platform making it easier to plan and make quick decisions.
We at CargoFL are helping businesses in making logistic management easier for businesses incorporating electric vehicles by making the process of introducing and observing new variables easier in a single unified platform.