Time to revolutionise India’s logistics industry with EVs

There is no more denying that the future of Indian mobility is electric. The EV revolution has taken the world by storm, with the global market projected to grow by 24.3% in less than a decade. The transition to electric mobility has emerged as one of the promising strategies to decarbonize the global ecommerce and logistics sector. 

In India, the EV market is emerging as a global hub for electric two-wheelers. In fact, the electric vehicle revolution has begun disrupting the ICE-dependent logistics industry. Many large OEMs and new-age startups are launching an EV version of popular LCVs. 

Just how unexpected the EV revolution has been? Imagine telling yourself half a decade ago that you will get groceries within 10-mins, delivered right at your doorstep through EVs or that hundreds of sleek EVs will gain popularity in urban cities. Unthinkable, but that is today’s reality!

Electrifying the logistics and quick E-commerce Industry

The massive growth and adoption in the EV segment have not only made them the future of mobility but also the future of the 100 smart Indian cities already in the works. And, that includes electrifying India’s $160 billion logistics sector. 

NITI Aayog estimates that India’s logistics sector can reduce cost 4% of the country’s GDP and save 10GT of CO2 by 2030 if we implement clean technologies, including electric mobility. Although much of the potential is untapped, India’s logistics sector has begun embracing EV and adopting it at a faster rate than expected. Many large OEMs are betting big on tech-enabled EVs to automate their supply chain. 

For instance, Flipkart, Swiggy, Myntra partnered with Zypp Electric to quickly transition to EV. Not only did Zypp help save 9 million KGS on CO2 through 2 million deliveries so far, but the company also enabled its partners in the grocery segment to cut down delivery costs by as much as 10%. 

Logistics to boost EV adoption 

We’re likely to see a multi-fold growth in the EV sector as more and more logistics and ecommerce companies start switching to clean energy and vice versa. The boost in EVs sales will come through the last-mile delivery segment. That’s because there are a lot of challenges when it comes to driving B2C adoption such as range anxiety and charging infrastructure problems. The adoption of EVs in the logistics sector is going to give India’s EV revolution a much-needed push. 

It will not only help logistics companies to automate their supply chain but will also help the overall EV industry build an innovative EV ecosystem that addresses all the pain points. There’s been an increase in the number of logistics and ecommerce companies committing to go electric, which has been an important driver for EV growth in India. 

Moreover, the Indian government’s firm stand to drive EV adoption across industries has encouraged more ecommerce platforms to pick up the EV momentum quite aggressively. Recently, the Delhi government introduced a remarkable policy that makes the use of electric vehicles mandatory for all ride aggregators and delivery service providers. 

The present and future of shared mobility 

The draft policy has proposed incentives to ensure a smooth transition to last-mile EV delivery services. The new policy creates a huge potential for companies like Zypp Electric that can enable logistics players to switch to EVs. Today, if we look deeper into the EV space, we will find several quick ecommerce, food delivery, grocery delivery, and logistic companies joining hands with EV rental companies. Their aim is very simple: to leverage existing and evolving EV and charging infrastructure to perform carbon-free last-mile delivery.

Beyond deliveries, these EV rental startups also aim to solve a range of pain points like capital expenditure on EVs and Charging infra, training of drivers, efficient utilization of fleet & rider earnings. Most importantly high operational costs of delivery on an ICE vehicle and hence, lower rider earnings. Most importantly shared mobility will help companies cut down the high operational costs of delivery on an ICE vehicle and offer better incentives to their delivery partners. 

Delivery partners in some tech-enabled EV startups have seen net savings increase by almost 100% after transitioning from an ICE bike to an EV. Moreover, EVs are also attractive because small business owners, gig workers, and independent delivery partners can subscribe to those customized EVs for as low as INR 149 a day, which is much lower than what an ICE would cost. 

As we move to shift massively from fossil fuels to all-electric, we will be able to tap much of the untapped potential and bring a whole new perspective of mobility into view, making the future not just electric but also green. 

by Akash Gupta, Co-founder & CEO, Zypp Electric.