Amazon Trials Genetically Modified Electric Delivery Vehicles in Pursuit of Climate Objectives
In a bid to reduce carbon emissions and enhance their fleet operations, General Motors (GM) and Amazon have been exploring the use of electric vehicles (EVs) for delivery purposes.
In 2021, GM launched its BrightDrop division, a new business unit aimed at targeting fleet customers and providing software solutions for tracking shipments and deliveries. The company sold approximately 1,600 BrightDrop electric vans in the first half of 2024, but faced a setback when it idled the van plant in April due to slow sales.
Despite the initial challenges, GM managed to sell a small batch of BrightDrop electric vans to Amazon in 2023. The e-commerce giant, known for its ambitious environmental goals, has more than 31,000 electric vehicles on the road, including over 24,000 Rivian vans. Amazon confirmed it is testing the BrightDrop electric vans, with plans to have 100,000 electric delivery vehicles on the road by 2030.
Amazon's contract delivery firms are also using the BrightDrop electric vans, and the pilot program involves approximately 12 vans. Other companies like Ford Motor Co., Mercedes-Benz Group AG, Stellantis NV, and Rivian Automotive Inc. are also testing these vans.
Rivian, another company with an Amazon partnership, has faced its own challenges. The company has faced job cuts and reduced vehicle delivery targets as it works to bring new consumer models to market and deals with President Donald Trump's tariffs and the looming expiration of the US EV tax credit. Amazon has tested over 15 EV models, making it clear that they are committed to exploring various options for reducing the carbon footprint of their delivery operations.
Getting in the door with Amazon could be a significant win for GM if the company can build on the relationship and move beyond a pilot program. Substituting electric vehicles for gasoline-powered ones is a cornerstone of Amazon's effort to reduce carbon emissions, and the collaboration with GM is a step in that direction.
In addition to Amazon, FedEx bought a small batch of BrightDrop electric vans from General Motors in 2023. As the demand for sustainable solutions grows, it seems that the future of delivery vehicles may well be electric.
By August 2024, GM folded the BrightDrop division into its fleet business division, GM Envolve, indicating a focus on integrating electric delivery solutions into its broader business strategy. The company will need to continue to innovate and adapt to meet the growing demand for sustainable transportation solutions.
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