Last-mile delivery at forefront of electric vehicle adoption: Another startup to go all electric

The move will contribute to an operating cost reduction of 25%. VegEase will add three-wheeler loaders with Li-Ion battery which have a load capacity of 300 kgs.

By:Updated: Jul 23, 2021 11:31 AM

There has been a substantial rise in the use of electric two- and three-wheelers in India and a lot of this can be attributed to startups working in the last-mile delivery segment. Spurred on by the ongoing pandemic, a lot of people have shifted to shopping online for most commodities, including essentials. This has led to a boom in the doorstep delivery of goods and services. While range anxiety continues to be a concern for prospective EV users, vehicles used for delivery purposes mostly have a preset route and hence, managing the electric charge is simpler.

E-commerce giants like Amazon and Flipkart announced their EV fleet targets earlier this year, with Amazon partnering with Mahindra Electric for its Treo Zor electric three-wheeler.

While there are several startups that only include electric two-wheelers in their delivery fleet, others are planning to shift to 100 percent EVs. In a bid to reduce carbon footprint of its logistics operations, VegEase, an e-grocery startup, recently announced that it has begun to deploy Electric Vehicles (EV) in its last-mile delivery fleet.

The company has just completed an initial pilot this month and will move completely to an electric fleet by 2024. Towards achieving this, VegEase has partnered with electric vehicle OEM, OBA for their three-wheeler eVikas light commercial vehicles under a long term leasing model.

Also read: Online delivery boosts use of last-mile electric two-wheelers: eBikeGo fleet now 7x bigger

The move will contribute to an operating cost reduction of 25%, according to VegEase that will add three-wheeler loaders with Li-Ion battery which have a load capacity of 300 kgs to its fleet.

VegEase witnessed its customer base doubling in just April 2021, and the startup states that it is growing at the rate of 100% every month. Since its inception in January 2021, VegEase has achieved a turnover of Rs 10 million, a customer base of over 18,000 in the Delhi/NCR region, with 5,000 customers coming on board in April and May 2021 alone. By the end of 2021, VegEase will be operational across all major metros in the south and west India, with a targeted turnover of Rs 40 million in the current fiscal year.

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