A clutch of European and U.S. delivery company startups is racing to serve the growing market for offering zero-emission, electric last-mile deliveries in cities to retailers and consumers before giant shippers do the same.
H&M, the world's second-largest fashion retailer, said it is scaling up a number of zero-emission delivery initiatives "through a variety of partnerships like the one... with Liefergrun."
In a pilot project, DHL will switch to 100% zero-emission last-mile e-commerce deliveries in the Netherlands by the end of this year, with other markets to follow through investments of "double-digit billions" of euros, said Deutsche Post DHL head of corporate development Yin Zou. "The biggest requests from our customers are when can you expand and how soon can you take all of this volume?" CEO Tristan Thomas said.Europe has so far proven more fertile ground for zero-emission package deliveries.
DutchX's revenue should rise by more than a third to around $40 million this year. The company will launch operations in Philadelphia this year, with three or four more additional U.S cities next year. The challenge for startups is that scaling up is difficult. Many use smaller vehicles than the typical delivery truck, squeezing profit margins because it is hard to deliver enough packages to offset labor and other costs.
"As to the threat these startups present, certainly the established carriers will be keeping an eye on these developments," Goldsby said. "They are also prone to acquiring any service provider that's doing something really cool."
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