How Electric Trucks Will Change the Package Delivery Business

Tuesday, September 5, 2017

Electric Delivery Truck

Fred Smith birthed the idea for FedEx at a management class at Yale, a course that he purportedly got a C, according to the legend. Then, the idea of online ordering and doorstep delivery seemed too far-fetched. Fast-forward many years later, thanks to the e-commerce bubble, same day delivery services are the norm. From drones to electric trucks, getting ordered goods at your doorstep has never been easier.

There are a few challenges here and there, and most of these technologies are still in their infant stages, but things are looking up. Today, innovations relating to e-commerce and home delivery are focussing on speed and reducing friction during transactions. Speaking of which, electric trucks have been in the headlines for quite some time now, here's how they are going to change the package delivery business once the technology takes off.

Reduced Delivery Costs

One of the biggest challenges in any business is cost. If the cost of doing business exceeds the profits generated, then there is no point. The delivery business is no different, and the cost of delivering packages to the doorstep has always been high. Way before the technology boom in the 1990s, many logistics companies had to shut down due to the technicalities involved in the business.

Over the years, things have been changing gradually, and the cost of making doorstep deliveries has also been reducing. Today, the delivery business is on the verge of starting to use electric trucks, as opposed to diesel trucks, to deliver packages across the country. Electric delivery trucks reduce the cost of delivering packages at about 75 percent. The lower cost of doing business will then be transferred to the final consumer in terms of lower delivery prices. When the rates are affordable, many people will be able to use the services.

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Higher Home Delivery Efficiency via Drone-And-Truck Systems

Technology breeds efficiency. With electric trucks, we can expect a relatively higher level of efficiency in the delivery business. Electric trucks are perfect in an urban setting since they are best suited for shorter distances. In the rural areas where distance that needs to be covered to make a delivery is larger, electric trucks can be supplemented by drones.

Both these technologies are expected to take off at the same time, and the probability of supporting each other via drone-and-truck systems is high. When driving to isolated locations, an electric delivery truck by itself would be inefficient. A drone can be placed on top of the truck to carry out last mile deliveries and eliminate inefficiencies. Making deliveries to secluded homes in rural landscapes will be much easier with the combination of trucks and drones.

Less Environmental Pollution

Heavy and medium duty automobiles represent only four percent of vehicle population in the United States. However, these vehicles consume more than 20 percent of the transportation fuel consumed in the country. Hybrid, electric, and other advanced vehicle technologies can dramatically reduce fuel consumption in the US leading to lower fuel costs and improved quality of the air we breathe.

If you are conscious about the environment, then you have one more reason to be excited about electric delivery trucks. They are eco-friendly, zero emissions to the environment. On top of that, the entire cost of maintaining the vehicle will be reduced — including car insurance. Most car insurance providers offer eco-friendly discounts. Doing a thorough auto insurance quotes comparison can help you get the best discounts, hence the best rates.

The doorstep delivery business is on the verge of a technological revolution. Electric delivery trucks and drones are just the beginning of this revolution and will be causing massive changes in the business. It's up to companies in the business to adapt or lag behind. The earlier, the better.

By  Carol EvensonEmbed

Carol Evenson is a corporate trainer and experienced business consultant. She specializes in team management and growth hacking.


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