Fuel volatility accelerates EV leap in last mile delivery for ecommerce, logistics firms

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Ecommerce and logistics companies are accelerating the shift to electric vehicles (EVs) for last-mile deliveries, driven not just by sustainability goals but also by rising costs and supply risks.

While EV adoption was already gaining momentum at companies such as Flipkart, Delhivery and Porter, fuel price volatility linked to global conflicts is hastening the transition, executives at bigbasket, Zippee and Dealshare said.

With fuel costs becoming increasingly unpredictable, companies expect EV timelines to advance as delivery partners seek to reduce risk.

“While the energy crisis is a recent phenomenon, fluctuating fuel prices are also a key catalyst in accelerating EV adoption,” said T K Balakumar, chief operating officer, bigbasket. “We estimate that our transition has been advanced by ~6-9 months, as delivery partners increasingly shift to EVs to reduce fuel cost volatility and improve net earnings.” At the grocery etailer, about 48% of the active last-mile fleet runs on EVs, which it expects to scale up to 70% over the next 12-24 months.

Cost efficiency, climate gains

Lower running costs translate into higher earnings for delivery workers, while companies benefit from lower emissions and a reduced climate footprint.

The current fuel environment is accelerating adoption.