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New AI-powered study sets strategies to scale electric deliveries

Global study on the electrification of delivery fleets is powered by AI platform Ubuntoo and calls for stakeholders' collaboration for industry globally

LONDON , UNITED KINGDOM, December 8, 2023 / -- A new AI-powered study published this week (Wednesday) identifies successful strategies for the global transition to electric powered delivery vehicles.

Electrifying Progress’ is supported by AI platform Ubuntoo and authored by global consumer internet group Naspers Prosus, who has built a significant global portfolio of delivery companies in food, groceries and e-commerce.

The study examines how the delivery sector can scale the electrification of vehicles and reduce the environmental impact of getting food, groceries and parcels to consumers’ homes.

Up to 50 percent of carbon emissions associated with delivery can be traced back to the ‘last-mile phase’.

Research estimates this phase results in annual emissions of almost 8 million tonnes of GHG across India, Europe, and the United States.

Global demand for last mile delivery is set to increase by 78 percent by 2030, with a 36 percent rise in the number of delivery vehicles in the world’s top 100 cities. This increase would see a potential rise in GHG emissions by 32 percent if there is no intervention.

Ensuring cost-effectiveness is essential for the widespread adoption of EVs in delivery according to Naspers Prosus and Ubuntoo. The study also highlights that facilitating practical application of EVs through suitable charging infrastructure and range of vehicles is key.

Public acceptance is a third pillar of change identified by the report, after analysing qualitative data from global companies in the sector and other stakeholders in the EV industry.

The report lists strategies for delivery operators to support the adoption of electric vehicles in commercial deliveries and portrays initiatives of successful businesses as they uptake electrification within their operations.

The electrification of delivery offers the potential to accomplish an array of crucial sustainability objectives, including mitigating localised air quality issues and improving the livelihood of delivery drivers.

While technological innovation and private sector initiatives play pivotal roles in driving electrification a faster uptake of electric vehicles will depend on political will and regulatory support.

Prajna Khanna, Global Head of Sustainability, Naspers Prosus group:

“Our research has shown that to deliver an effective decarbonisation of delivery systems, concrete government action is essential. In addition, accessible financial incentives will help to create trust and confidence for entrepreneurs and companies that are the agents of change. It’s now time for policymakers to take action to support this transition.”

Peter Schelstraete, Co-Founder, Ubuntoo:

“We are proud to have supported the research behind this seminal report, putting our cutting-edge AI platform to work and combining it with world-leading human expertise. The future is electric, and the planet demands that every country now gets on board with the transition.”

Jacob Robinson
Higginson Strategy
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