Powering Progress Report

ELECTRIFYING PROGRESS
Scaling zero-emissions delivery of

food, groceries and parcels
www.naspers.com | www.prosus.com
Knowledge partner
TABLE OF CONTENTS
In an era marked by growing concerns ENDORSEMENTS 2
over carbon emissions, climate change, air
FOREWORD 4
pollution, urbanisation and the pressing need
for sustainable solutions, our global society is 01 EXECUTIVE SUMMARY 6
grappling with a dilemma: how to reconcile 02 INTRODUCTION 8

convenience with environmental responsibility.
03 THE SOCIETAL VALUE OF ELECTRIFICATION 12
The food, grocery and etail delivery sectors,
fuelled by rapid expansion and growing 04 WHAT IS LIMITING SCALE? 14
popularity, find themselves at the nexus 05 POWERING ZERO-CARBON DELIVERIES 18
of this challenge. Adoption of new business models 22
Development of charging infrastructure 25
ELECTRIFICATION Battery swapping
EV fuel cards
26
28
OF DELIVERY IS A Developing EVs fit for commercial purposes
Private financing for delivery partners

28
31
PROFOUND ANSWER Gradual fuel duty reduction 33

33
TO ADDRESSING
Preferential treatment of electric deliveries
Expand pool of low-barrier vehicles 34
THIS CHALLENGE.
Training and awareness programmes 34
Carbon credits for drivers 36
Public finance 36
Policy measures 39
Investments in new technologies, alternative power sources
and digital systems
40
06 THE PATH FORWARD 42
07 CONCLUSION 44
08 BIBLIOGRAPHY 46
09 ABOUT THE AUTHORS 49
01 SCALING ZERO-CARBON DELIVERY IN FOOD, GROCERY AND RETAIL SECTORS

ENDORSEMENTS Amidst the urgent call to address the climate crisis, At Glovo, we have realised that the only way to
Sameday endorses this ground-breaking report, generate real impact is by integrating sustainability
recognising the imperative to scale electric vehicles into the core business operations of the company,
This report shows the pioneering work our Decarbonising last-mile delivery is a vital step for our and zero-emission deliveries. As active promoters aligning business owners with the understanding
companies in Food Delivery and Etail are industry to mitigate its impact on the planet and actively of environmentally friendly business solutions in last that it is not only the correct thing to do but also
undertaking to scale electric vehicles in their work towards the climate pledges of the countries in mile delivery, we operate the Easybox APM network good business. We believe that fleet electrification
deliveries, decarbonise their operations and which we operate. This report is a welcome addition to and deliver using our own EV fleet, and believe is not just a measure to address environmental
contribute to building a clean and resilient mobility the ‘EV journey’ of food-delivery companies. By outlining that consistent and concerted effort is required, challenges but also a strategic business decision.
sector in the countries they work in. I believe this collective challenges and bringing together a community in mitigating pollution and safeguarding our It’s not merely about meeting our customers’
report captures valuable learnings and insights of dedicated practitioners, we can accelerate our planet’s future. expectations, but it also offers clear benefits for the
of so many of our portfolio companies. The report progress towards serving our customers in the most business, including lower costs and support for
At Sameday, we are fully committed to scaling
marks our commitment to scale zero-emissions environmentally responsible way.“ the courier experience.”
zero-emission delivery solutions. This report aligns
deliveries for which we need all players in the
Ana Mitrasevic, chief people and sustainability officer seamlessly with our mission and we are proud Sacha Michaud, co-founder
transport sector to join in. We call in particular
Delivery Hero to endorse its vision for a carbon-neutral future. Glovo
on financiers and policy-makers to enable a
Let this be a clarion call for collaboration and
transformation of the way we transport food,
commitment as we collectively navigate the path
groceries and parcels.”
towards a cleaner, healthier planet.”
Roger Rabalais, CEO Food Delivery/B2C
Lucian Baltaru, CEO
Naspers/Prosus
Sameday
As the largest parcel and on-demand delivery business Electrification of last mile urban freight deliveries is
in South Africa, takealot.com group is committed to a viable business proposition. Business innovation
reducing our environmental impact and promoting and collaborations in this space can further lead to
sustainable business practices. Ecommerce and food- significant and fruitful action for emission mitigation
delivery businesses have an important role in driving in urban settings. This report provides an excellent
At iFood we strongly believe that the best companies sustainability by optimising and consolidating deliveries
City planners are developing new urbanistic concepts, summary of learnings from industry initiatives in the
need to excel in innovation, growth and profitability, but to customers. takealot.com group supply chain is scaling
with less space for cars and ambitious goals to area from around the globe leaving enough food for
also in generating a positive impact on the environment zero-emissions delivery solutions by implementing
reduce the emissions. By scaling grocery delivery on thought for others to follow the suit.”
and society through education and inclusion. We solar power generation at five distribution centres,
recognise the pressing need to advance electric electric bikes, we are supporting these plans offering Ashwath Ram, Co-chair, CII National Committee on
implementing fully electric trucks supplying logistics
vehicles and zero-emissions deliveries. This report a low emissions’ solution for the daily shopping.” Future Mobility and Battery Storage; Managing
hubs and transitioning last-mile delivery vehicles to
illuminates the transformative power of technology clean energy solutions. takealot.com group is now the Christoph Cordes, Co-Founder Director, Cummins India
in food, grocery, and ecommerce, presenting a largest electric truck fleet operator in Africa.” Flink
roadmap for change and exceptional cases. At iFood,
our commitment extends beyond efficiency – it’s a Francois Retief, head of supply chain and logistics
pledge for climate justice, ensuring our journey towards takealot.com group
sustainability is equitable, leaving no one behind, and
fostering a world where environmental benefits are
shared by all.”
Fabricio Bloisi, CEO
iFood
As a business, our commitment to sustainability
drives us to embrace change and integrate more
electric vehicles into our operations. In the dynamic
intersection of food delivery and technology,
adopting solutions like Electric Vehicles in our fleet
In Oda we have now started the EV rollout of our is not just a choice but a strategic imperative. This
delivery fleet, with the ambition to achieve a 100% report serves as a guide on our journey as an
electrical fleet. Recognising that a significant part industry, providing insights and fostering responsible
of our operational emissions stems from last-mile business practices that align with a more sustainable
deliveries, a switch to zero-emission vehicles plays future. We aspire to take the lead in piloting, scaling,
a crucial role in our decarbonisation plan.” and researching EVs in the region.”
Vegard Vik, CFO and founder Tomaso Rodriguez, Chief Executive Officer
Oda Talabat MENA
NASPER PROSUS ELECTRIFYING PROGRESS 02 03 SCALING ZERO-CARBON DELIVERY IN FOOD, GROCERY AND RETAIL SECTORS
FOREWORD
We are excited to share this report with you, an unmistakable

milestone on the group’s journey towards increased sustainability
performance of our Food Delivery and Etail companies.
Naspers/Prosus is both an investor and operator, and we Let us take a quick step back to explain our three-pillar
invest in digital tech globally. Over the years, we have strategy that underpins our engagement philosophy with
built a portfolio of Food Delivery and Etail companies our group companies on sustainability. Firstly, we start with
that work with more than 2 million drivers to deliver over an exclusions approach, clearly defining sectors and activities At Naspers/Prosus,
275 million food and grocery deliveries per month from we want to avoid exposure to. While steering away from
India to Brazil and South Africa to Europe. Our opportunities in these sectors, our investment team also our investment thesis
companies are at the forefront of shaping how we eat conducts due diligence on material areas like data privacy has helped us curate
and live and rethink transportation in urban areas. and cybersecurity during the early stages of engagement.
a portfolio of asset-
Once a company joins the Naspers/Prosus family, our second
Our research shows that global demand for last-mile
pillar directs us to engage deeply and onboard companies
light, low-carbon-intense
delivery is set to increase 78% by 2030, with a 36% rise
in the number of delivery vehicles in the world’s top 100 to drive their sustainability. Our third pillar is to uncover digital companies that
cities. This increase would see a potential rise in GHG and invest in new sectors and businesses that are solving can further catalyse
emissions by 32% if there is no intervention. This gives a environmental and social challenges while we invest in data
clear imperative to decarbonise deliveries, and this report analysis to quantify the net positive impact of our business a broader systemic
shows that electrification and other zero-emissions segments, such as the emissions avoided through our transition for their users.
classifieds platforms.
deliveries offer the potential to accomplish an array of We strive to enhance
crucial sustainability objectives, including mitigating
localised air quality issues and improving the livelihood
We hope you find the report useful and welcome your the ESG performance
feedback and further insights from your journey!
of delivery drivers. of all companies in our
Prajna Khanna, global head sustainability,
This report shows our portfolio companies have
Naspers/Prosus
investment portfolio.”
implemented many initiatives, deployed investments and
are collaborating on innovative programmes to increase
the share of electric vehicles in their delivery fleets. Our
investees share our entrepreneurial instincts, and our
companies are motivated by a commitment to delivery
and profitability.
At Naspers/Prosus, our investment thesis has helped us

curate a portfolio of asset-light, low-carbon-intense digital
companies that can further catalyse a broader systemic
transition for their users. We strive to enhance the
environmental, social and governance (ESG) performance
of all companies in our investment portfolio. We apply
ESG factors in selecting and assessing new prospects and
use these criteria in managing the performance of
businesses and investments across our portfolio.
01
EXECUTIVE SUMMARY
Electrification of It promotes environmentally friendly urban practices, mitigates localised

air quality issues, generates employment opportunities, improves
Delivery platforms and their transportation partners are
exploring solutions while actively piloting models, seeking
delivery offers the livelihoods of delivery drivers and fosters greater public acceptance insights from best practices, defining and refining their
Public support as
of delivery services. business models, and developing their strategies, with the a driver of innovation
potential to accomplish aim of creating scalable and sustainable delivery solutions In the pursuit of societal transformation, the pivotal role
Nevertheless, despite the substantial benefits, adoption has been
an array of crucial slow and scale limited. In this report we identify three key challenges:
for the future. of public investment and support emerges as a
catalyst for change, fostering progress and innovation.
societal objectives, Price, practice and public acceptance. Price, or affordability of electric This paper delves into the rationale and examples of
The work of the economist and academic Mariana
vehicles (EVs), are impacted by elements like higher upfront costs electrifying delivery operations by the food, grocery and
that encompass compared to conventional diesel or gas alternatives, development costs etail platforms (see box 01 on page 8), with a specific focus
Mazzucato has extensively discussed the role of
government-led innovation and the importance of
environmental, social of supporting infrastructure and technical challenges. Practice relates on emerging markets (or so-called least developed
public financing in technological advancements.
to the critical need for operational excellence, with delivery being the countries). We identify barriers to scaling EV adoption, and
and economic benefits. crucial last step in delivering a high-quality customer experience. we portray initiatives and best practices of successful
Mazzucato argues that policies that have achieved
success in driving radical innovations have primarily
The electric transportation system has to function properly to ensure businesses as they show leadership and uptake
focused on shaping and creating markets through
it matches the needs of the delivery industry, in particular for freelance electrification within their delivery operations, allowing us to
direct and extensive public financing, rather than
drivers whose income depends on it. Public acceptance refers to the shed light on lessons learned.
merely attempting to fix existing markets [1]. She
sum of all parts of the electric mobility ecosystem coming together,
Our goal is to contribute to a broader effort to disseminate identifies three key areas where this is evident:
connecting the dots between the different stakeholders, from consumers
existing insights into the implementation of electric delivery
to drivers and from electricity providers to regulators, ensuring that • The presence of public funding at every stage
systems and empower industry stakeholders with the
electric mobility becomes the new normal. Achieving electrification at of the innovation chain.
knowledge to make informed decisions. In doing so, we
scale demands a collaborative effort within the ecosystem, and the
hope to pave the way for a more sustainable and • The implementation of ‘mission-oriented’ policies
implementation of interconnected strategies.
responsible future for food, grocery and etail delivery that have created new technological and
operations worldwide. industrial landscapes.
• The entrepreneurial and lead investor role of public
actors, capable and willing to take substantial risks,
regardless of the business cycle [2].
Mazzucato contends that governments can shape

economic growth by articulating well-defined missions
dedicated to addressing critical societal issues, such
as climate change and mobility concerns. Through
strategic investments across the innovation chain
and fostering cross-sector spillovers, they can
simultaneously tackle a range of challenges while
steering the markets toward environmental
Our goal is to contribute to a sustainability and economic prosperity [3].
broader effort to disseminate
existing insights into the
implementation of electric delivery
systems and empower industry
stakeholders with the knowledge
to make informed decisions.”
02
INTRODUCTION
The on-demand delivery industry has experienced a
1 Delivery platforms: significant surge in recent times, driven by the increasing

Up to 50% of the entire carbon emissions
convenience of online shopping – in terms of easy access to
Role and business model associated with delivery can be traced
Assuming a steep a diverse selection of products, simple ordering and efficient
back to the last-mile phase, and research
Delivery platforms serve as the bridge between user demand, primarily from delivery, and the rise in urban living. The Covid-19 pandemic
consumers but sometimes businesses, for a diverse range of products – from and global shift to prompted a high demand for contactless delivery services, estimates annual emissions of almost
electronics, groceries and beauty products to vegan burgers from the newest 90% battery electric making home delivery an integral part of our daily lives. 8 million tons of GHG across India,
restaurant in town. These platforms connect users with manufacturers and The ease of online shopping has changed our behaviour Europe, and the United States [4]. With
sellers, shops and restaurants and often handle all aspects of product
motorcycles sales toward ordering food, groceries and parcels to be delivered no intervention, we can expect worldwide
delivery. The products can be proprietary to the delivery platform or sourced by 2030 could result to our homes. The proliferation of urban living has further last-mile delivery demand to increase by
from other brands. The key measure of platform quality of service is their in CO2 emissions fuelled requests for on-demand delivery, as we seek quick
and convenient solutions to meet our needs.
78% by 2030, resulting in a 36% rise
ability to provide, secure, and reliable delivery, often along with payment
reductions of about in the number of delivery vehicles in the
processing and post-purchase support. Typically, when a consumer places an
The expansion of this market has pushed a notable increase world’s top 100 cities, with a consequent
order, the product is retrieved from a warehouse, store, or restaurant kitchen, 11 billion tons between in the total number of delivery vehicles1 on our roads and increase in emissions by 32% [5].
the order is fulfilled (eg, packaged and made ready for shipment) and then
passed to a delivery driver responsible for logistics and for ensuring the order
now and 2050.” the frequency of their trips, leading to valid concerns about
air pollution, emissions, and congestion. In this context, electric vehicles have
is received. These delivery drivers can be directly employed by the platform – UN environment emerged as one of the prioritised tools to
or employees of a third-party delivery provider, or can be independent eMob calculator Commercial fleet electrification is in its early stages, mitigate the adverse effects of delivery,
drivers (often classified as gig workers). Some variations exist, such as models but gaining momentum. As the decarbonisation of
particularly GHG emissions [5], while
where retailers interact with consumers, and a separate fulfilment company passenger vehicles is gaining traction globally, the sale
handles order processing, including picking, packaging, and shipping.
unlocking significant environmental,
of electric commercial vehicles is following suit. The pace
of electrification varies significantly per country, as is
economic and social benefits.
shown in the visual below.
State of electrification across selected regions

Delivery vehicles and phases of delivery
China India South Africa Brazil World
Share of total emissions Share of total emissions Share of total emissions Share of total emissions Share of total emissions
from road transport from road transport from road transport from road transport from road transport
7% 5% 8% 41% 15%
Electrification of fleet* Electrification of fleet* Electrification of fleet* Electrification of fleet* Electrification of fleet*
24% 3% 0.04% 0.2% 10%
Electrification of Electrification of Electrification of Electrification of Electrification of
2/3W fleet* 2/3W fleet* 2/3W fleet* 2/3W fleet* 2/3W fleet*
16% 8% 0.3% 1% 27%
Electrification of Electrification of Electrification of Electrification of Electrification of
Factory/ Distribution Dark store or Consumer’s 4W fleet* 4W fleet* 4W fleet* 4W fleet* 4W fleet*
manufacturer centre small shop home
32% 1% 0.02% 0.1% 2%
Share of EVs of new Share of EVs of new Share of EVs of new Share of EVs of new Share of EVs of new
vehicle sales vehicle sales vehicle sales vehicle sales vehicle sales
8% 6% 0.1% 3% 14%
1
In the context of this report, we are focusing on electric delivery vehicles, including 2Ws (e-bicycles, e-motorcycles, e-scooters), 3Ws (rikshaws), and 4Ws
(electric cars, light commercial vehicles or LCVs). Non-electric bicycles are also considered zero-emissions delivery vehicles and can be part of delivery
First-mile delivery Middle-mile delivery Last-mile delivery platforms’ strategies to achieve emission reduction.
* Privately owned vehicles only.
02 INTRODUCTION
China is by far the world leader in implementing and Prominent delivery companies are trying to electrify their
manufacturing EVs. There are several factors that play a role Projections for India fleets in the near future, driven by their commitment to
in the electrification of a national fleet, such as GDP and reducing greenhouse gas (GHG) emissions, in response to Lessons
national net-zero commitments, but government support Projections for India indicate that, investor expectations and in anticipation of upcoming from the past
through legislation, ambitions and targets are critical in by 2025, 25% of EV sales will come legislation. For instance:
developing an electric ecosystem and scaling EVs. from the electrification of last-mile
• Brazil’s food-delivery platform iFood have announced The transition from horse-drawn carriages to
delivery, across fleet composition.
Economic prosperity, or GDP, indicates the ability for a goal of 50% of deliveries to be non-polluting by 2025. automobiles in the early 20th century was a significant
Not only is their market share
citizens to invest in new vehicles, and net-zero commitments • Indian food-delivery platform Swiggy committed to disruption that transformed transportation. Hay and
expected to grow, but vehicle
2025
of a country paint a backdrop of the urgency by politicians achieve daily EV deliveries covering 800 000 kilometres water were replaced by gasoline and oil. This shift,
numbers will increase by up to
and policy-makers to transition to EVs. But particularly by 2025. which took about 50 years, brought about new
140% for 2Ws and 25% for 3Ws [7].
influential is the availability of financial incentives. For challenges and opportunities, including safety
• As part of the Delivery Hero group, food and grocery-
instance, of the seven Chinese EV legislations, four arrange concerns, environmental impacts, and economic
delivery platform Glovo committed to achieve a
financial support such as tax exemptions, subsidies, and implications. But understanding this historic transition,
EV sales Market share growth delivery vehicle mix with more than 67% being non-
license plate privileges. In India this is three out of seven [6], will help us to understand how we can be successful in
last-mile delivery combustion vehicles.
as captured in the IEA Global EV Policy Explorer. making electric transportation a success. For example,
electrification
140% 25% the first automobiles were initially introduced in small
China India South Africa 25% for 2Ws for 3Ws numbers at a price of about $850 each, a significant
price jump from the $50 cost of a high-quality horse
GDP per capita (US$) GDP per capita (US$) GDP per capita (US$)
buggy. At the same time, while horse-feeding
12 670 2 390 6 776 contributed to the rural economy, it posed challenges
Net-zero Net-zero Net-zero for waste management in urban areas. The transition
commitment timeline commitment timeline commitment timeline
from horses to cars not only transformed the economy
2050 2070 2050 Stages of delivery process: but also generated need [8].
Policies Policies Policies Focusing on the last-mile
Legislation Proposals Legislation Proposals Legislation Proposals Today, we are witnessing a similar disruption with
7 1 7 0 5 0 In the context of deliveries, the first-mile pertains to the the transition from internal combustion engines (ICE)
Targets Ambitions Targets Ambitions Targets Ambitions initial stage of the process. It involves the to EVs. Much like the shift from horses to cars, this
30 10 20 8 2 0 transportation of products from their respective transition presents its own set of challenges and
sources, often the manufacturer or the import company. opportunities. It has significant implications for
Brazil World
consumers, the environment, traffic safety, infrastructure,
GDP per Net-zero GDP per Net-zero The middle-mile operates between the point of
capita (US$) commitment timeline capita (US$) commitment timeline
and the global economy – and the landscape is
collection and the delivery destination, facilitating the
evolving rapidly, with the industry moving toward
8 831 2050 12 900 2050 efficient flow of products. In this phase, items are
not only EVs, but also shared, connected and
Policies Policies typically consolidated, sorted, and transported to
self-driving vehicles.
Legislation Proposals Legislation Proposals designated hubs, where they are prepared for the
1 2 182 36 last-mile delivery. Just as society adapted to automobiles a century
Targets Ambitions Targets Ambitions
0 0 136 174 ago, we are now adapting to EVs. As we embark
The last-mile is often the most crucial segment of the
on the journey, the lessons of the past underscore
delivery process when goods, ranging from warm
the importance of seizing new opportunities,
food, groceries, fresh fruit or retail products, are
anticipating change, and managing it.
transported to the end consumers. The last-mile is
pivotal for ensuring timely, secure, and satisfactory
deliveries, making it a focal point for service quality
and customer satisfaction.
This report acknowledges last-mile as the stage

Economic prosperity, or GDP, when electrification introduces distinctive and
complex challenges. Strategies and best practices
indicates the ability for citizens will focus on this phase of delivery. Many of the
to invest in new vehicles, and lessons learned and recommendations provided are
net zero commitments of a also applicable to middle-mile, and to a certain
extent, can be extended to first-mile operations.
country paint a backdrop of
the urgency by politicians and
policy makers to transition to
electric vehicles.“
03
THE SOCIETAL VALUE 2 Scaling electrification presents
These sentiments do not seem to be entirely reflected in
consumer behaviour, however, as evidenced by the low
percentage of individuals willing to pay to offset the carbon
an interesting economic case,
OF ELECTRIFICATION offering the potential for
substantial cost savings:
footprint of their deliveries [14]. Targeting conscious
consumers or fulfilling the sustainability demands of partners
and vendors looking for climate-friendly delivery are among
the main drivers of electrification in more mature markets.
More than 20% fewer
In today’s ever-evolving business landscape, the breakdowns and 30% lower
Additionally, embracing electrification is a commitment to
sustainable practices that resonates positively with local
global push for more electric transport is driven by service costs experienced in their communities. This ‘social licence to operate’ is crucial for
first three years of use compared to ICE businesses and industries, as it builds goodwill and
environmental, economic and social benefits. vehicles. This is due to simpler design long-term viability3. Actively involving the public in the
and higher energy efficiency [11]. transition to electric transportation builds strong
relationships essential for the success of EV initiatives.
Savings from EV adoption are
ENVIRONMENTAL ECONOMIC: estimated to reach up to +80% in Jobs
AND SOCIAL: operational costs in electric
At individual level - reduced fuel Finally, the electrification of delivery fleets can stimulate
2Ws in a five-year period [12].
Reduction of GHG emissions, improved air consumption, lower operational costs. economic growth and job creation in the clean-energy
However, the upfront costs of electric
quality, reduced noise pollution, sector. It is estimated that transitioning to clean energy will
At industry level: protection against fuel price 2W models are significantly higher than
establishment of a cleaner and more lead to 14 million new jobs by 2030, with 5 million jobs lost
and supply volatility, higher fleet efficiency those for corresponding ICE models,
sustainable transportation system, lower as fossil fuel declines [15], and transportation could have a
and improved reputation, economic growth with the battery being a significant
dependence on fossil fuels (which some significant role in this shift.
and job creation. factor influencing electric 2W’s total
countries need to import).
costs of ownership over time.
By 2025, EVs are expected to have

a 5% to 10% lower cost per
Cleaner maintaining cost predictability and stability. For instance,
mile compared to ICE vehicles, mainly
food and grocery-delivery platform Glovo has seen in some
The primary advantage of fleet electrification lies in the due to savings in fuel and maintenance,
of its markets that the business case for electric delivery was
considerable reduction of GHG emissions attributed to which may decrease by about 60%
positive, even without government support.
EVs as opposed to conventional vehicles. Transportation and 70% respectively [13].
accounts for more than 15% of global GHG emissions, and is Commercial delivery stands at the forefront of the
predicted to continue to grow [9]. The uptake of EVs not only electrification movement, presenting an efficient avenue for
improves air quality, a crucial concern especially in densely further decarbonisation of an economy. This is primarily
populated regions, but also brings several other benefits. because transitioning to zero-emission delivery vehicles
It helps alleviate traffic congestion, thus enhancing clean might offer the fastest and most efficient means to
A steep and global shift
urban mobility, and contributes to the reduction in noise decarbonise [10]. Owners of commercial vehicles tend to to 90% battery electric
pollution within urban areas, ultimately improving the overall operate their fleets intensively, driven by the need to
motorcycles sales by 2030
quality of life for residents. Lastly, reduced reliance on maximise profitability. This optimisation is particularly
supply of fossil fuels, in favour of locally produced solar, advantageous in delivery operations marked by frequent Consumer sentiment could amount to savings
wind or other renewable energy can also boost resilience braking and stop-and-go scenarios, areas where ICE
Electrification in delivery also has the advantage of
of about USD 350 billion
of the local transportation system. notably lag in terms of efficiency.
appealing to environmentally conscious consumers who by 2050, basis both lower
Cheaper Consumer sentiment increasingly prioritise sustainable and eco-friendly options,
fuel and maintenance
thereby driving preferences toward companies that adopt
Electrifying transport can also yield substantial savings. Furthermore, the electrification of delivery fleets can cleaner and greener transportation methods. McKinsey and costs as well as higher
EVs feature fewer moving parts and higher energy efficiency catalyse the development of an expansive electrification
compared to traditional combustion engine vehicles, leading infrastructure. Investments made in a business context by
the World Economic Forum survey data revealed a notable purchase price of electric
rise in consumer interest in EVs, a shift that holds important
to reduced per-kilometre consumption and, consequently, investors in the public sphere, the private sector or a implications for commercial transportation. Over 70% of motorcycles.”
substantially lower operational costs2 (see box 02 on combination of both, rather than relying on individual participants acknowledged the significance of employing
page 13). They offer protection against volatile fuel prices, citizens to invest, can enable a robust system that benefits EVs in both long-haul and intra-city transport, while 40%
– UN environment eMob calculator
generating resilience for businesses and users by the entire community. were willing to pay for the transition.
2
Based on the Total Cost of Ownership (TCO), it is anticipated that battery EVs will outperform their ICE counterparts in all vehicle categories as early as 3
For instance, in certain regions or cities, such as Amsterdam, dark stores have been prohibited in residential areas or mixed residential-working zones [40] due
2025 [16]. to concerns related to noise and air pollution. Transitioning to EVs can be a step in the right direction to address these concerns and potentially obtain such
social licences to operate.
04
WHAT IS
LIMITING SCALE?
As the interest in The first two problems revolve around cost-
effectiveness and operational viability of electric
Problem Governments are often driving
electrification grows fleets, while the last one relates to building an of price innovation and shaping the
and more programmes extensive uptake at sector and national scale, to Investing in electric fleets can be a significant financial markets in revolutionary ways.
explore the advantages ensure ecosystem-wide alignment and coordinated commitment for both delivery platforms and independent
A prime example of the case about the role of
development. contractors. Delivery platforms that are still building toward
of fleet decarbonisation, it profitability might find it difficult to invest in electric fleets.
governments in funding innovation made by
economists such as Mariana Mazzucato [19] is Tesla.
While EV and battery costs have decreased, they still come with Gig workers commonly lack the initial capital required for
is important to recognise a higher price tag compared to their ICE counterparts, presenting a such purchases. Investing in electric fleets can be a
Despite Elon Musk’s recent opposition to government
subsidies, his companies, including Tesla, have
that stakeholders in notable barrier for individuals and organisations looking to purchase significant financial commitment, especially for delivery
received billions in government subsidies over the last
a new vehicle. Especially in emerging economies, EV purchase is platforms that are still building toward profitability. Gig
the food, grocery, and challenging in the absence of public support due to the lack of access to workers, in turn, typically have a low income and face
two decades [20]. On a national scale, countries such
as China stand out as prominent examples of efforts
etail delivery sectors, affordable financing options, and infrastructure development is slowed
down by lack of funding.
economic challenges, even in developed economies [17].
and strategies devised to decarbonise road transport.
This economic instability highlights an ongoing issue: in the
regardless of their absence of appropriate financial and policy support, EVs
Over the past decade, China has consistently enacted
a series of regulations and policies aimed at curbing
business model or tend to remain within the reach of affluent entities and
individuals. Consequently, people with fewer assets tend to
fuel consumption from vehicles and to transitioning to
Total Cost of Ownership analysis [16]
location, encounter be excluded from the economic, environmental, and social
EVs and, as a result, it has experienced a remarkable
surge in the EV market [21]. China’s nationally
benefits of electrification, further fostering inequality [18].
operational and strategic US$ per mile determined contributions (NDCs)4 toward
decarbonisation further underscore this ambitious
challenges related to Light commercial vehicle (LCV) Problem target, including the goal of achieving net-zero GHG
three challenges: Index (ICE2 = 100)
of practice
emissions by 20605. To align with these priorities the
country has implemented a range of interventions,
price, practice and Urban use case In many regions of the world, the current prevailing user including an ambitious plan for GHG emissions from
public acceptance. perception of independent drivers centres around an transportation. China’s surge as the world’s largest
market for EVs has also been enabled by the
–13% inherent trade-off between battery range and
affordability. Vehicles with extended ranges, catering to the implementation of such policies to encourage the
higher mileage requirements typical in commercial adoption of EVs and scale their production [22].
applications versus private use, tend to come with Purchase subsidies active for a decade were ended in
significantly higher price tags. Conversely, more affordable 2020 [23], but other initiatives keep stimulating the
EVs do not offer comparable quality and performance as industry. For example, EV buyers are entitled to a 10%
100 ICE vehicles – for example in terms of acceleration with purchase tax exemption until the end of 2023, the
increased pickup demands, or stability required for delivery government sets a credit system for Original Equipment
87
18 purposes, particularly among 2Ws. This drives the concept of Manufacturer (OEM) based on EV proportion
5 range anxiety, one of the most concerning challenges in production targets and has supported the industry
11 through procurement contracts [22]. Additionally, the
21 commercial adoption. Charging infrastructure is often not
11 adequately developed or strategically positioned to government provides support for the construction of
accommodate the unique demands of commercial fleet charging infrastructure and has established the
operations and, in emerging economies, power cuts and Chinese Electric Vehicle Charging Infrastructure
loadshedding can disrupt the reliability of charging Promotion Alliance (EVCIPA) [24] to promote
61 operations. Notably, the speed of charging infrastructure technological innovation and business collaboration,
60
plays a crucial role in fleet electrification, as slower charging and make policy recommendations to help the
stations can lead to longer downtimes, affecting operational government manage and advance charging
efficiency and possibly limiting efficiency for delivery models infrastructures more effectively [25].
that cannot rely on night-charging only. Especially in the
ICE BEV
4
ationally determined contributions (NDCs) are at the heart of the Paris Agreement and represent each country’s efforts to reduce national emissions
N
and adapt to the impacts of climate change. They embody efforts by each country to outline and communicate their post-2020 climate actions [39].
5
However, despite these ambitious targets, China’s emissions under current policies remain high, with no sign of substantial emission reductions before
the 2030 peaking timeline. Energy and electricity demand forecasts continue to grow, prolonging China’s dependence on fossil fuels [38].
04 WHAT IS LIMITING SCALE?
context of gig workers, the unique nature of the industry grid. Electrification advancement is impeded by limitations
creates an interplay of technological and infrastructural in the public sector finances, scarcity of individual funds,
challenges, as it favours delivery drivers who complete more underdeveloped banking systems, restricted loan access,
deliveries. Payment structures are based on the amount of and high capital costs [26]. Incentive programmes targeted
deliveries done. The demand for charging services is, in at commercial fleets can have a broader transformative
turn, concentrated during off-peak delivery hours, such as impact within the transportation sector. As commercial fleets
intervals between meal rushes. When this misalignment gradually transition to EVs, the benefits inevitably extend to
is not addressed, it can lead to inefficiencies, longer the private market. Commercial EVs that have fulfilled their
downtimes, and potential income disparities. first use cycle, can eventually become available for sale to
the end consumer and help establish a second-hand market
Problem of that will not only expedite EV adoption but also ensure that
the advantages of sustainable transportation options are
public acceptance accessible to a wider audience.
Challenges related to investment and financing are also

key factors contributing to the obstacles faced in achieving
widespread electrification. When analysing and projecting
the future of global energy systems, the International Energy
Agency (IEA) describes how in a Stated Policy Scenario To achieve net zero emissions
(STEPS)6, “average annual end-use investment in road
transport needs to reach USD 110 billion in the second by 2050, according to the APS of
half of the 2020s with an additional 40% needed annually some major emerging economies,
through 2050. [To achieve net-zero emissions by 2050]
according to the APS7 of some major emerging economies,
annual investments will need to
annual investments will need to reach USD 150 billion reach USD 150 billion between
between 2026 and 2030, rising to over USD 230 billion in
2026 and 2030.”
the period to 2050” [26]. Investments are also needed to
develop an extensive charging infrastructure and energy
6
The Stated Policies Scenario (STEPS) is a projection by the International Energy Agency (IEA) that provides a sense of the direction of energy system
progression, based on a detailed review of the current policy landscape and measures under development.
7
Announced Pledges Scenario (APS), IEA’s projection that illustrates the extent to which announced ambitions and targets can deliver the emissions reductions
needed to achieve net-zero emissions by 2050.
05
POWERING Ensuring cost-
ZERO-CARBON DELIVERIES effectiveness
Realising significant
progress in this
Efforts to scale must be solving
for three core objectives:
is essential for
the widespread
transformation demands Price, practice, public acceptance
the establishment and Price
maintenance of a robust
adoption of EVs
Ensuring cost-effectiveness is essential for the
widespread adoption of EVs in delivery. This
and integrated ecosystem encompasses considerations such as upfront purchase
encompassing diverse, costs, rental fees, and ongoing running costs that
interconnected solutions
and strategies.
influence the Total Cost of Ownership (TCO). Especially
for gig workers, the costs and risks of electrification are
critical. Excessively high costs and risks can compromise
their income and jeopardise their ability to sustain their
in delivery.
livelihoods, ultimately discouraging their participation
in the transition.
These solutions vary in feasibility and
effectiveness, with different stakeholders in
charge of leading their implementation.
Practice
EVs must be well-suited for commercial use and
need to meet stringent safety, speed, and longevity
requirements essential for logistics operations. This needs
to take into account factors such as vehicle characteristics
(eg, cooling systems) and battery range. Additionally, it’s
imperative to guarantee adequate coverage and speed
of charging infrastructure, along with the reliability
of the power grid.
Public acceptance
Particularly in the context of 2Ws, electrification brings
about various societal benefits. This includes job
creation, improved accessibility for individuals without
a driver’s licence, enhanced mobility for people
with various physical abilities, and quieter, more
Creating a zero-carbon
comfortable transportation. For the delivery company, delivery ecosystem
it expands the available driver pool by tapping into
This chapter outlines a comprehensive list of strategies
a more diverse and inclusive labour force, ultimately
(see next page) aimed at fostering the uptake of
increasing its operational flexibility and capacity:
electrification tailored for commercial food, grocery and
electrifying delivery, especially by adopting 2Ws and
parcel deliveries. The strategies delineated are scored
e-bicycles, and opens opportunities for a wider range
based on their required capital and time investments,
of individuals to participate in the workforce as delivery
and on the magnitude of their impact in catalysing
drivers. This inclusivity extends to people who may not
widespread electrification in the sector.
possess a traditional driver’s license or those who may
have physical limitations that would have otherwise
restricted their participation in the workforce.
05 POWERING ZERO-CARBON DELIVERIES
Business model Contribution Capital Time Size of

Strategy applicability to challenges intensity intensity impact Best practices
‘Quantifying the benefits of electric motorcycles’ – Vammo,
1. Adoption of new business models + + ‘Smart timesharing of e-bikes’ – iFood,
‘Testing electric cars in Romania’ – Glovo
2. Development of changing infrastructure +
‘Battery swapping service’ – Gogoro,

3. Battery swapping + +
‘Building battery swapping station network’ – Swiggy
4. EV fuel cards + +
‘Custom-built refrigerated trucks’ – Oda,

5. Developing EVs fit for commercial purposes + ‘Pioneering electric trucks in South Africa’ – takealot.com,
‘Collaborative approach to electrification’ – Talabat
‘E-motorcycles in Brazil’ – iFood,
6. Private financing for delivery partners
‘Sustainable transport and financial inclusion in East Africa’ – Glovo
7. Gradual fuel duty reduction
8. Preferential treatment of electric deliveries + ‘Development of green zones’ – iFood
9. Expand pool of low-barrier vehicles +
‘Empowering South African youth’ – takealot.com,

10. Training and awareness programmes
‘Social impact initiatives’ – Talabat
11. Carbon credits for drivers
‘Accessing public subsidies for EV purchase’ – eMAG,

12. Public finance
‘Financing vehicles and structural investments’ – Glovo
13. Policy measures +
14. Investments in new technologies, alternative ‘Drone and robot deliveries’ – Talabat
+ +
power sources and digital systems ‘Green Easybox’ – Sameday
Own fleet Freelancers Price Practice Public acceptance
List of strategies aimed at increasing the adoption of electrification in In this report, we analyse three fleet sourcing models: in-house fleet (1PL),
commercial deliveries. The capital and time intensity of each strategy is rated contracted fleet (3PL), and freelancers model. This table categorises each
on a scale from low intensity (1) to high intensity (3). Additionally, the size of strategy’s applicability based on the entity investing in vehicle electrification.
impact denotes the magnitude of the effect of each strategy on the broad Consequently, the column ‘Business model applicability’ differentiates between
scaling of electrification. OWN FLEET and FREELANCERS models, independent of whether the fleet is
owned by the platform or the 3PL and irrespective of whether freelancers are
contracted by the platform or the 3PL.
1. A
doption of new having to maintain a fleet of vehicles or a full-time
workforce. However, this trend also raises new challenges Quantifying the benefits of
Electrification via freelancers/
business models and considerations, such as the need for fair compensation
and working conditions for gig workers. independent contractor model
electric motorcycles
In the realm of delivery platforms, the Delivery platforms operating under a freelance model
When transitioning to EVs, especially when shifting from
engage independent contractors for their delivery
structuring of operations revolves around one vehicle type to another (eg, from cars to motorcycles),
services. Within this context, delivery partners can
three distinct fleet sourcing models. The the impact on the organisation can vary significantly. For
either have their own delivery vehicles or utilise
diverse nature of these models offers the instance, while electric cars may excel in handling range
rental or shared options provided by EV operators,
and distance compared to EVs, 2Ws can substantially
flexibility to employ a spectrum of enhance operational efficiency in particular urban settings.
eliminating the need for an upfront financial
strategies tailored to the unique This vehicle transition can yield cost savings due to the lower
commitment. Delivery platforms relying on gig workers
characteristics and requirements inherent can introduce a range of incentives to encourage their
purchase price of 2Ws relative to cars, while also enabling
drivers to transition to EVs. These incentives may
in the company adopting them faster order deliveries, ultimately benefiting businesses and
include financial bonuses, reduced service fees, and
customers. On the other hand, certain delivery areas may
the provision of privileged access to specific delivery
be unsuitable for specific vehicles, often due to challenging
opportunities (as will be explored further in this report).
road conditions, safety concerns, or logistical constraints.
In-house fleet
(also referred to as 1PL):
Delivery platforms should conduct a meticulous Contracted fleet (3PL)
evaluation of their specific context and objectives
This model involves the direct purchase or when selecting a business model and the appropriate type This model entails delivery platforms outsourcing their
leasing of vehicles by the delivery platform of EV. While aiming for alignment with the existing ICE logistic services to third-party providers. Typically, the
decision to adopt this model extends beyond EV
for its own usage. Typically, companies operational approach can yield substantial advantages by Brazil
utilising this model rely more extensively on leveraging established infrastructure, operational processes, considerations, as it is influenced by legal, regulatory,
four-wheeled vehicles, although some are and expertise, it may also be advantageous to explore a and commercial factors within the business
also integrating 2/3Ws into their fleets. combination of models or to customise existing strategies as environment. However, some companies have begun
Vammo is a Brazilian electric mobility company offering
potential testing grounds for discovering new opportunities. exploring collaboration with 3PL to support them in
electric motorcycle rental and battery swapping services
Contracted fleet the transition.
to delivery operators. On its website, the company
(sometimes referred to as 3PL): informs drivers about the estimated financial benefits
The delivery platform enters rental contracts of switching from an ICE motorbike to an electric one,
with third-party logistics services, which based on the kilometres driven per day and the
utilise contracted drivers or gig workers. available rental plans.
The proportion of delivery vehicles engaged In-house fleet
under this model can vary significantly, electrification (1PL)
encompassing 2/3/4Ws.
This model provides complete control over the delivery
process, vehicle branding, and route optimisation.
Freelancers At the same time, it requires considerable upfront
The delivery platform engages financial commitments for vehicle acquisition, and
independent contractors, such as gig operational costs for maintenance, training, and
workers, to perform delivery services. depreciation of the fleet need to be taken into
They primarily operate 2/3Wvehicles. consideration.
Delivery companies can opt for in-house fleet

electrification via leasing or other asset-based
In both CONTRACTED FLEET and FREELANCER models, the financing instead of outright vehicle purchases.
fact that vehicles are owned by the partners, rather than Leasing provides various advantages such as reduced
by the delivery company, allows for flexibility to adapt to initial expenses, potential tax benefits, flexibility to
the unique market dynamics and vehicle preferences, while upgrade, and access to certain maintenance and
maintaining an efficient and diverse fleet. Broadly, the support services. As not all leasing solutions and
sector is showing a tendency to move away from asset vehicles provided are identical, fleet owners must
ownership, with the gig economy playing an increasingly select a provider capable of delivering solutions
prominent role [27]. This shift is driven by various factors, customised to the company’s specific needs and
including the flexibility and scalability offered by requirements.
employing freelancers, and the cost efficiencies of not
Smart timesharing of e-bikes Testing electric cars in Romania 2. D

evelopment of
charging infrastructure
Infrastructure development plays a pivotal role in fostering a
seamless and sustainable ecosystem for the electrification of
delivery services. At the heart of this transformation is the
need to establish a robust charging infrastructure to
support growing fleets.
While limited battery range can potentially

impact the performance of employed
drivers, range anxiety has a more
pronounced effect on freelancers, as
extended downtimes can directly affect
their earnings and livelihoods.
Depending on whether installation and maintenance are
publicly or privately led, and whether the network serves the
public or private fleets, charging stations can be tailored to
accommodate a wide array of EV users, such as private
vehicle owners, commercial fleets, and other categories
across different types of vehicles. While expanding public
charging infrastructure and grids is increasingly needed to
foster EV uptake at scale, delivery platforms with an owned
and operated fleet often need to consider direct investments
in on-site charging stations within their facilities, while some
organisations choose to partner with their vendors to install
stations on their premises, to support the expansion of the
Romania Model: 3PL charging network.
Alternatively, proactive measures by other stakeholders are

In Romania, delivery company Glovo is partnering required to facilitate infrastructure providers to accelerate
Brazil Model: Freelance with the company E-Mobility to conduct trials on the their work:
use of small electric cars for delivery purposes.
• Government support can extend to facilitating
Currently, a fleet of 49 vehicles is in operation,
infrastructure advancements. Initiatives include
iFood Pedal is the company’s e-bike initiative, powered Starting with about 500 e-bikes, iFood Pedal has following a leasing model subsidised by Glovo,
subsidising real estate owners who provide land for grid
by a strategic collaboration with Tembici, the largest expanded to over 3 000+ e-bikes across seven Brazilian coupled with a battery swapping subscription
infrastructure, shared mobility facilities, or battery
micro-mobility company in Latin America. This programme cities, servicing around 5 000 drivers each month and model. The subsidy starts at 70% in 2023, gradually
swapping installations.
seamlessly integrates shared e-bikes into the delivery fulfilling over 800 000 orders. decreasing to 30% in 2024. The primary goal of this
pilot programme is to assess the viability of electric • Platforms can contribute to shaping a favourable policy
ecosystem by leveraging off-peak demand differences
The programme is also integrated into educational cars for delivery in Romania, based on a environment and improving infrastructure by forging
between private and commercial users. Delivery partners
programmes like “Pedal Responsa” that aims to reinforce comparison of efficiency levels and operational long-term commitments with governments and electric
can utilise the e-bikes during extended hours (four, in
the importance of traffic and “Meu Diploma do Ensino costs when compared to ICE. network operators (ENOs), to assure steady and secured
contrast to the limited one-hour private-use period) and
Médio” which offers full scholarships to drivers who want demand and instil confidence in the profitability of their
at significantly more affordable rates. Integration in the
to continue studying and finish high school – connecting investment. The approach seeks to assure providers that
company’s digital systems allows Tembici to distinguish
environmental and social impact into one solution. their investments in charging infrastructure will not go
private users from iFood drivers, granting them exclusive
underutilised, as a dependable number of riders will rely
benefits. As each e-bicycle serves multiple drivers Recognised with the SDG Innovation: Disrupting Business
on it, thus enhancing the security and viability of their
dynamically, cost-efficiency is achieved through shared as Usual award at the United Nations Global Compact
capital outlay.
maintenance and lower upfront costs. Leaders Summit 2023, iFood Pedal stands as a pioneering
• Retail partners can offer space on their premises for the
solution that promotes sustainability, empowers delivery
Tembici’s strategic positioning of e-bike stations near charging of batteries for delivery drivers to make use of,
partners, and reimagines urban mobility through more
delivery hubs in urban areas has significantly eased the while waiting for new orders.
sustainable deliveries.
burden on drivers commuting for their deliveries, also
facilitating rides in hilly and challenging city areas.
3. Battery swapping Tackling the object of affordability, the separation of the

power pack from the vehicle can significantly lower the
Battery swapping is gaining significant traction, especially
for 2Ws and 3Ws, as these vehicles are ideally suited for this Building battery swapping station network
Battery swapping, or battery exchange, is gaining initial purchase costs of EVs. By selling or renting the vehicle technology: the batteries used weigh less than 10kg, making
momentum as a promising solution to the limitations of without the battery, manufacturers and EV operators can them easily replaceable without the need for automation
electric delivery and address range anxiety. Offered by offer a more budget-friendly option to drivers. support, which helps to keep capital expenditure limited to
an increasing number of operators, often in concomitance batteries and charging stations [31]. Typically, as the daily
with EV rental services, the system is characterised by the Battery cell sourcing is the largest cost travel distance extends, 2Ws using battery swapping tend to
establishment of a strategically placed network of battery item for electric 2Ws and forms 30% to 40% become increasingly cost-effective compared to conventional
exchange stations, distributed across the operational of the vehicles’ bill of materials [30]. point charging or gasoline-powered vehicles [32]. China is
expanse of the delivery service. The stations are equipped at the forefront of the battery swapping industry, having
with fully charged batteries, tailored to be compatible The success of battery swapping hinges on operational already deployed approximately 1 400 swapping stations
with the vehicles in use. efficiency and digital technologies. Vehicles remain and planning to install 26 000 stations by 2025 [33]. Those
connected to the internet, enabling continuous location efforts are driven by automotive standardisation efforts
This approach eliminates the need for protracted charging tracking, thereby mitigating risks associated with rental. and targeted subsidies [26].
periods and empowers drivers to sustain uninterrupted On the other hand, battery inventory and infrastructure
delivery operations. It brings notable enhancements to development demand substantial capital investment. Until a more standardised market for
operational efficiency, reducing charging times, and The lack of standardised battery models further compounds swappable batteries emerges, manual
extending on-road operational hours. Moreover, battery costs and operational complexities. Ongoing maintenance assistance is required at the stations
swapping has the potential to prolong the life of EV and oversight of charging equipment are imperative to
batteries by replacing them before they are fully depleted, to ensure the correct battery type is
ensure secure operations, consequently increasing
reducing wear and tear and extending their useful life [28]. maintenance costs for swap facilities. assigned to each swapper. As the
In addition, battery recycling can benefit from swapping industry progresses toward greater
models as the returned batteries are conveniently managed uniformity, automated stations will
at the swapping station, facilitating more effective recycling become more prevalent, especially for
practices at the end of their lives [29].
4Ws. This will represent a higher initial
investment but offer simplified operations
India Model: Freelance
and reduced running costs, especially
Battery swapping service when deployed at scale.
Mobile and portable charging Swiggy is testing different strategies to promote EV
adoption among its delivery partners. The two-pronged
Mobile and portable charging are alternative solutions
strategy focuses on enabling easier access to EVs for
to traditional static charging infrastructure. To charging
gig workers, as well as helping the development of the
operators, mobile charging offers the possibility to quickly
Taiwan build up infrastructure or test optimal locations, with the
broader charging ecosystem. Initially, the company
partnered with a 2W EV rental operator, offering a
flexibility to relocate without incurring extra expenses.
discount on monthly rentals for its drivers. However, the
They also help fleet owners avoid the installation of static
Gogoro is a Taiwanese company that developed a pilot programme encountered significant challenges as
charging stations as well as give fixed rates that integrate
battery swapping refuelling platform for urban electric it met with resistance from drivers, mainly stemming from
operational and capital expenditures, and energy costs.
2W scooters, mopeds, and motorcycles. Stations for the critical issue of inadequate charging infrastructure.
swaps are available 24/7, station sites can be mapped The evolution of mobile charging technology has paved the
In response to this challenge, the company has
en route, and users have the option to pay cash-free or way for the introduction of mobile-charging-as-a-service
partnered with Sun Mobility, the leading provider of
secure a subscription plan for ease of riding. Gogoro (M-CaaS). M-Caas providers offer on-demand charging for
energy infrastructure and services for EVs in India, to
also has its own line of smart scooters that have EV fleet vehicles, eliminating the need for upfront costs
establish charging stations deploying battery swapping
features tailored to different users’ needs. The vehicles related to on-site charging infrastructure, construction,
technologies. Through this partnership, Swiggy’s e-bike
are encrypted and have face ID for security, and are energy expenses and charging equipment maintenance.
fleet will have access to a wide network of swapping
connected to Gogoro app and iQ system for system
Charging units can be easily deployed at diverse locations, stations in the city of Bangalore.
updates. Gogoro has collaborated with the Taiwanese
providing flexibility and convenience in areas with limited
and Indian government to promote the EV adoption,
infrastructure or grid connectivity. M-Caas providers can
and with delivery platforms such as Swiggy, India’s
offer various charging models, typically recurring charging
leading on-demand convenience delivery platform.
schedules, on-demand charging, or state-of-charge Even though mobile charging is expected to remain a niche
(SOC)8-linked options. The latter requires systems integration application, it is an interesting complement to traditional
to enable the automatic dispatch of charging vehicles when charging stations and can support early-stage markets or EV
the fleet’s battery level reaches a predefined threshold. operators with limited financial resources.
8
T he state of charge (SoC) is a measure of the current battery capacity as a percentage of its rated
capacity. In other words, it’s the level of charge of an electric battery relative to its capacity.
4. EV fuel cards The market’s growth potential for

new commercial EV models depends
Concurrently, as the trend toward electrification in the sector
continues, OEMs must learn how to integrate their business
should also prepare for a transition toward a subsidy-free
operational and sales model, with a primary focus on
Especially in markets where grid expansion is propelled by clients more extensively into their product offerings and acquiring market insights, establishing a robust market
on achieving a balance between range market strategies. In certain countries, OEMs can leverage presence, and fostering collaborations with key EV adopters.
public investments, fleet operators may find it advantageous
to access, fully or partially, the public charging infrastructure, and price while ensuring that vehicles policy support in the form of incentives. Nonetheless, they
to reduce the need for establishing their own charging deliver high performance. High
stations. In this case, fleet drivers are equipped with fuel performance includes extended range,
cards, available in both physical and virtual forms, enabling low maintenance requirements, extended Custom-built refrigerated trucks
them to connect to standard chargers at home or on longevity, superior comfort and safety
the road. Payments are facilitated via prepaid cards or
across different road conditions.
reimbursement for charging expenses. Cards are typically
programmed to distinguish and exclude private vehicles Even when delivery platforms do not have their own
from charging and can offer preferential pricing. They fleet, they have a major influence on their driver’s vehicle
can also include a fleet management system, providing selection. For this reason, some OEMs have found it useful
comprehensive driver usage tracking through the fleet to strike collaborative ventures with platforms and EV Norway Model: Own Fleet
owner’s account. operators to conduct pilots aimed at identifying drivers’
needs and matching them with their best-suited models.
By negotiating preferential tariffs for on-road charging of an
These initiatives are notably successful in regions with a Norway’s largest online grocery store, Oda, has embarked
owned fleet it is possible to break down some of the barriers
thriving culture of 2Ws, where vehicles serve dual purposes on a collaboration with Ford to introduce a fleet of specially
to public charging network access. By subsidising road or
for both personal and commercial use, and vehicles with adapted fully electric Ford E-Transit refrigerated trucks.
home charging for freelancers, platforms have another tool
improved performance can cater to different technical and These E-Transit vehicles have been customised to meet
to incentivise transition with their freelance drivers.
functional requirements. The fit of the vehicle also hinges on Oda’s insulation and cooling requirements, completed
local infrastructure. Developed markets favour comfortable, with tailor-made storage compartments. Charging
5. Developing EVs fit for efficient vehicles, while regions with poor infrastructure might infrastructure and efficient routes are essential for a smooth
require sturdier options to navigate rough terrain and transition, with the E-Transit offering a battery range that
commercial purposes ensure dependable transport. meets Oda’s requirements. The vehicles have been
integrated into the company’s digital fleet management
OEM play a critical role in driving the electrification of As battery swapping technologies gain traction, particularly tools, providing enhanced productivity and reduced
delivery through the design and production of vehicles within the 2W segment, battery compatibility also becomes operating costs. The new vehicles have been successfully
customised to suit the unique demands of delivery a crucial consideration for OEMs, as it influences seamless tested, but an ongoing learning period is what will prepare
operators. They need to efficiently cater to fit-to-purpose integration and accessibility, ultimately impacting the overall Oda for an all-electric future.
vehicles for the delivery segment, with diverse requirements success and acceptance of their vehicles.
depending on both geography and the type of vehicle,
be it 2Ws, 3Ws or 4Ws.
NASPER PROSUS POWERING PROGRESS 28 29 SCALING ZERO-CARBON DELIVERY IN FOOD, GROCERY AND RETAIL SECTORS
Pioneering electric trucks in South Africa Collaborative approach to electrification E-motorcycles in Brazil
which will be taken into service by takealot.com in

October. To keep elevating its approach to
sustainability, the company has worked closely with
Aeversa to strategise and implement optimal
integration methods, ensuring the seamless operation
of the fleet in the Western Cape. The support from Avis
onboarding the fleet is a first-of-its-kind project in the
world of commercial vehicle leasing. One of the key
highlights of this partnership is Aeversa’s innovative
approach to addressing driving range of EVs. By
harnessing the potential of the JAC N75EV’s impressive
200-kilometre range per charge, Aeversa has UAE Model: 3PL
transformed it into a 400-kilometre-plus daily driving
range by implementing strategic charging solutions.
This revolutionary approach not only enhances Talabat is currently undertaking electrification
Brazil Model: Freelance
operational efficiency but substantially minimises initiatives, driven by a commitment to environmental
environmental impact”. sustainability and economic efficiency. The company
South Model: Own fleet is actively addressing a variety of challenges,
iFood, in collaboration with Vammo, has introduced
Africa “This partnership is about so much more than electric an e-motorcycle rental service for its delivery partners.
including technological and regulatory limitations,
trucks and charging stations; we envision this as the Supported by iFood’s investment, this service offers
and behavioural change of riders, through
first step towards a much-needed shift in logistics,” says various advantages, including discount rates and a
engagements with OEMs, distributors, 3PLs, and
October 2023 – South Africa’s leading online retailer, Rick Franz, CEO of Aeversa. “Through this partnership, rental package that covers maintenance, assistance,
government bodies. Ongoing collaborative efforts are
takealot.com, has announced a pioneering step towards we are excited to weave a more sustainable approach and spare bike options, with no additional charges
pivotal in piloting EVs, testing infrastructure viability,
sustainable ecommerce in South Africa with the launch of into the fabric of logistics and transport in South Africa,” for swapping at designated stations.
and seeking regulatory approvals. Talabat has
a new fleet of electric trucks. Through its collaboration adds Franz. The partnership also marks a significant
filtered multiple EVs based on performance and The programme aims to optimise operational efficiency,
with renewable-energy company Aeversa and lease milestone in the realm of charging infrastructure,
safety metrics. Out of 15 EV brands assessed, only offering an intelligent recharging infrastructure with a
vehicle supplier Avis, the online retailer is setting a new with the inauguration of the largest DC fast charging
five 2W EVs had the basic capabilities required. choice of three e-motorcycle models and three rental
standard for environmentally sustainable transportation, station in the Western Cape. The station, boasting
These brands were then piloted for at least two plans tailored to different delivery needs. Efficiency
coupled with retail innovation and sustainability. a remarkable 240-kilowatt capacity earmarked for
weeks with live orders in limited areas, and were is achieved through a data-driven fleet management
2024, ensures rapid charging and reliability, enabling
“As the world of sustainability continues to evolve, we assessed on their safety through rider focus groups, approach, optimising charging station placement
takealot.com to maintain an uninterrupted supply chain
will continue to evolve with it. This exciting collaboration internal testing and performance, compared to their and enhanced fleet control. As a result, this programme
and meet customer demands without disruption.
marks an important step for us as a consciously innovative 2W counterparts and on scaling capabilities based significantly reduces fuel costs for freelancers,
business in South Africa,” says Frederik Zietsman, Aeversa’s commitment to sustainability extends on their battery replacement infrastructure planning. while increasing their net earnings.
CEO of takealot.com. beyond the vehicles themselves. The company Three different EV bikes have already been integrated
leverages its proprietary Ampcontrol software to into the fleet. The process has also encouraged
“Backed by the Forest Stewardship Council, introducing
maximise the use of green energy sources, further competition to strive for better technology and pricing
electric trucks into our business reinforces our commitment
reducing carbon emissions while lowering the TCO models for 3PLs within Talabat’s logistics ecosystem.
to sustainability. We don’t just deliver packages; we are
for takealot.com’s vehicle fleet. The JAC N75EV electric These partnerships continue to facilitate the
delivering on our promise to reduce our carbon footprint
and provide a sustainable shopping solution to our
trucks, powered by Aeversa, are also equipped with development of safe and efficient EVs, enabling 6. P
rivate financing for
customers,” adds Zietsman.
advanced safety features, enhancing driver safety
and operational reliability, ultimately reinforcing
to adapt to different market challenges while
maintaining an efficient and competent delivery fleet delivery partners
Says Adrian Van Tonder, Avis’ General Manager for takealot.com’s dedication to delivering swiftly, through 3PL-owned vehicles. As part of the ongoing One effective incentive for drivers involves offering attractive
Sales – Commercial Fleet: “This journey has been a great safely and sustainably. The collaboration signifies electrification strategy, the company is focused on financing options to facilitate EV adoption. Many delivery
learning opportunity and experience as we navigate our a significant stride forward in South Africa’s improving financial feasibility for all 3PLs companies platforms are partnering with OEMs and EV operators to
way through uncharted waters. We are proud to be reimagined transportation practices, driving the by using different incentives to encourage them to establish financing lines for their delivery partners. These
partnered with the forward thinkers and runners within the online retail sectors towards greater innovation transition to EVs while leveraging governmental financing arrangements are designed to make it more
EV space. The journey towards this milestone has been in the quest for a greener future. support. With this approach, Talabat has started to affordable for gig workers to purchase, rent, or lease EVs.
filled with meticulous modelling of the JAC electric trucks successfully launch over 30 EVs in its fleet. This not only provides economic viability to the workers
but also increases their motivation by offering access
to a high-performing vehicle.
Platforms also have the option to facilitate the collection of subscription or rental fees on behalf of their drivers. These fees
are deducted directly from the drivers and subsequently transferred to the EV operator. This approach aims to minimise EV operators: their EVs for free at designated charging stations, or use
delinquencies and prevent delays in payments, to reduce dropouts in case a driver falls behind on their rental payments. battery swapping stations, reducing operational costs
EVaaS and shared mobility platforms and minimising downtime. The monthly lease fee
Delivery partners can be supported in switching to generally covers comprehensive maintenance and
greener vehicles without incurring the upfront costs repair services, significantly reducing the running costs
Sustainable transport and financial inclusion in East Africa
associated with ownership, by providing incentives to for the drivers.
rent or lease EVs via an EV operator such as EV-as-a-
service (EVaaS) providers or shared mobility platforms. Following a similar approach, shared mobility providers
Those companies, frequently start-ups, offer innovative enable access to shared vehicles for both private and
solutions to support delivery partners in transitioning to commercial use, optimising resource utilisation and
greener vehicles without the burden of significant upfront promoting efficient last-mile delivery. The efficiencies in
costs. Such incentives not only alleviate the financial load this approach are based on the utilisation of off-peak
on drivers but are also meant to ensure efficient and private use times, which coincide with peak hours for
hassle-free operation to the platform. commercial deliveries. This synchronisation benefits both
the share provider and the delivery operators. By
The mismatch between range and identifying and accommodating commercial drivers
affordability is still a critical concern through digital integration, the shared mobility provider
can offer more favourable conditions, such as extended
for gig workers in many countries.
rental times beyond the typical time limit for private
There is a significant gap in knowledge and users. Moreover, strategically located stations optimised
awareness surrounding the financial benefits tied for shared mobility make the process convenient for the
to EVs. Many drivers are unaware of the substantial gig workers.
long-term savings associated with EVs, underscoring
These alternative business models help align the cost
the urgency of facilitating access to information
structure of EVs more closely with that of ICE. By offering
and education on the matter.
the battery pack on rent or lease, rather than purchase,
EVaaS operators acquire EVs and make them available they significantly reduce the initial acquisition cost of the
through a subscription plan. What sets this model apart vehicle. Subsequently, the battery cost is recovered by
is the convenience it offers to drivers: they can charge the operator via a fee charged per kWh or km.
7. Gradual fuel duty 8. P

referential treatment
Kenya Model: Freelance reduction of electric deliveries
Another financial incentive strategy aimed at motivating Delivery platforms operating on a gig worker model have
In Kenya, Glovo runs a project aimed at promoting Similarly, in Spain, Glovo has signed agreements with freelancers to transition to EVs involves the implementation the flexibility to implement strategies such as preferential
sustainable transport and financial inclusion in East Africa electric bicycle suppliers to offer freelance couriers of a transition period during which drivers receive the same assignation of deliveries or better payouts as an incentive
through a collaboration with Roam (EV provider) and affordable leasing or procurement options. In Madrid and compensation they were previously earning for each order, to drivers who opt for EVs, encouraging the transition
M-Kopa (financing platform). Couriers are offered a Barcelona, over 800 couriers currently utilise electric which includes payment for the fuel costs associated with and increasing their take-home earnings.
subsidised leasing price to acquire electric motorbikes bicycles provided by the company Zoomo. Especially in ICE vehicles. This means that even if they have adopted EVs,
A similar possibility involves granting EV drivers priority
over a 24-month period, with M-Kopa providing loans to compact cities like Barcelona, these vehicles maintain drivers still receive the fuel cost compensation to maintain
or early access to selecting their preferred work hours,
ensure the viability of the acquisition. This decision is efficiency levels equivalent to motorbikes, ensuring a their income stability.
geographic zones, or the orders they wish to fulfil.
particularly beneficial for couriers in Kenya, given the stable source of income for couriers while reducing Following the agreed-upon transition period, the delivery
high fuel prices in the country, as it enables them to reduce operational costs related to fuel and maintenance. In cities One incentive for drivers involves establishing “green
platforms gradually phase out the fuel cost reimbursement
their daily expenses compared to using an ICE vehicle. where low carbon emission zones have been established zones” in selected cities, where EVs are given priority access
for ICE vehicles. This progressive reduction encourages
Subscribers to this offer are also provided insurance and by the government, electric bicycles enable couriers to and preferential assignments through algorithmic routing.
drivers to embrace EVs while ensuring that they continue to
maintenance services by Roam. At the time of writing this access and deliver within city centres. This incentive not only encourages EV adoption but also
receive their usual payout, which no longer includes fuel
report, three couriers have already acquired electric optimises delivery distances for EVs, maximising their range.
costs, as they complete the transition to EVs
motorbikes, and the project aims to expand to a pool Additionally, it can provide advantages such as offering
of 30 couriers by the end of 2023. vendors, restaurants and retailer partners zero-emission
deliveries, aligning with their sustainability goals and
business benefits.
Development of green zones 9. Expand pool of Empowering South African youth

low-barrier vehicles
As societies transition toward electric transportation, the
impact of the shift reaches far beyond the environmental
sphere. While in-house fleet drivers may encounter difficulties
related to the availability of charging infrastructure, it is the South Model: Freelance
2/3W freelancers who contend with the most significant Africa
hurdles, and thus stand to gain the greatest advantages
from the uptake of EVs.
In South Africa, a distinctive approach is being employed
Considering that 2Ws — comprising to support unemployed youth and address the demand for
mopeds, scooters, motorbikes, and skilled riders in the delivery sector. Delivery companies
such as takealot.com partner with driver training
motorcycles — constitute approximately
academies to upskill young individuals from low-income,
30% of global mobility, particularly in urban neighbourhoods, particularly those who are
regions like China, South Asia, and south- unemployed and lack opportunities for higher education.
east Asia [30], the potential social impact These academies offer training in riding e-bicycles. They
of electrification in these areas holds provide an avenue for young South Africans to gain
significant relevance. essential skills and subsequently equip them with a vehicle
Brazil Model: Freelance and other necessary tools to become delivery riders. This
Expanded accessibility of electric 2Ws opens new avenues initiative not only provides a means of income for young
for employment, specifically for companies switching from individuals but also meets the rising demand for 2W
traditional or e-motorcycles to e-bikes in their fleet. This delivery services in South Africa. It’s a win-win solution,
As part of a set of green initiatives, iFood is testing
benefits creates job opportunities and gives platforms the addressing unemployment while supporting the growing
a green delivery zone in São Paulo to promote
opportunity to increase their pool of drivers to meet growing delivery industry. Future plans include expanding the
sustainability and enhance the earning potential
market demand. To fully realise the promise of accessible partnership with driver training academies to assist young
of its drivers.
electric 2Ws, careful attention to inclusivity in design is South Africans in acquiring their motorbike driver’s licences.
The location chosen for the zone is characterised by essential. Features like lowered ground clearance, wide Once qualified, the graduates will then be connected with
bike-friendly terrain, a substantial order volume, and the entry points, and reduced noise levels create a user-friendly companies that rent e-motorcycles, equipping them with
presence of rest stations (support point), ensuring driver experience, regardless of physical capabilities. the necessary tools to become delivery riders.
engagement in the pilot programme. In partnership with
Vammo (refer to box on page 23), iFood is offering
vehicles to freelancers with access to a battery swapping
10. Training and
system. The initial phase of the pilot involved deploying awareness programmes Social impact initiatives
33 electric motorcycles in the designated area. During
Addressing the inclusivity and accessibility aspects of the
this phase, the performance of each EV was meticulously
transition makes the integration of EVs in delivery services
compared to that of traditional motorcycles, based on
even more compelling. To overcome secondary adoption
an analysis of drivers’ earnings, occupancy rates, and
challenges, such as the lack of awareness among riders
weekly operational costs. Encouragingly, the results
about EV benefits, platforms and EV operators need to
clearly demonstrated a strong driver preference for
understand existing perceptions and attitudes toward EVs
EVs, with nearly 50% of all orders being delivered
in each market they operate in. Proactive and strategic UAE Model: 3PL
through this programme. The success of the pilot has
communication initiatives can help bridge the knowledge
paved the way for the programme’s expansion, with
gap. Offering training programmes for delivery drivers to
the ultimate goal of transitioning the entire area into Talabat provides a range of social impact programs to
familiarise them with the operational aspects of EVs is
a 100% green delivery zone. support its drivers. These initiatives encompass summer
instrumental in addressing initial concerns and uncertainties,
and generating behavioural change. These programmes programs, safety summits, and focused safety messages
provide comprehensive guidance on efficient driving aimed at enhancing its drivers’ well-being and road safety.
iFood’s support points are designated spaces for The company also actively participates in water distribution
delivery drivers to rest during their shifts. They are techniques to optimise EV range, the use of digital
applications, safety regulations, maintenance support, and sponsorships, partnering with initiatives like Dubai Can,
found in iFood partner restaurants, hubs, or public a sustainability project aimed at reducing single-use
spaces, often with private sector partnerships. They overall utilisation of EVs. They equip delivery personnel with
the necessary skills and knowledge for a seamless plastic water bottle waste in the city of Dubai. Furthermore,
provide amenities such as microwaves, water filters, Talabat promotes the establishment of vendor waiting
sinks, power outlets, a rest area, and internet access. transition.
areas and has set up multiple cooled rider rest stops
The company’s app indicates their locations, helping across various countries.
drivers plan breaks and support their well-being.
11. C
arbon credits Most common forms of financing
Accessing public subsidies for EV purchase
for drivers Subsidies
Direct payments or grants from governments or
In certain regions, delivery platforms are starting to
organisations to reduce the purchase price or operational
venture into carbon credits for green vehicles, primarily
costs of EVs.
to provide an additional income source for freelancers
who use EVs for their deliveries. Rebates Model:
Romania
These projects need to be carefully Partial refunds of the purchase price or operational Own fleet
costs of EVs.
evaluated and undergo rigorous external
The online Romanian retailer eMAG and Sameday,
audits to ensure strict compliance with Tax credits the majority-owned courier company, have in recent years
third-party environmental standards. Reductions or refunds of taxes related to the purchase or benefitted from a programme granted by the Romanian
use of EVs to reduce a company's tax liability, making the Environmental Fund Administration (an autonomous
While being an innovative initiative, its impact may
transition a more appealing investment. The exact credit institution functioning under the Ministry of Environment)
be limited. Nonetheless, it presents a possible avenue
amount can vary, taking into account factors like the type of to finance operational leasing for about half of their
for improving revenue streams for businesses and
EV, its battery capacity, and local regulations. In some tax EVs to date.
individuals utilising commercial EVs.
systems, businesses are given the opportunity to accelerate
the depreciation of EV costs, allowing them to deduct a The programme, called Rabla Plus, is a well-structured
12. Public finance more substantial portion of the EV's expense from their funding mechanism that actively encourages the
acquisition of EVs. It extends its benefits to a wide array of
taxable income each year. Tax deductions or credits can
Public finance plays an important role in EV adoption, entities involved in economic activities, regardless of their
also be directed to the installation of EV charging
serving as a critical element upon which many stakeholders legal structure, encompassing diverse individuals and
infrastructure at business locations.
depend. There is a consensus on the crucial role that this business entities. The specific funding amount may vary
form of financing can fulfil in reducing the financial burden
Tax exemptions and discounts from year to year, but it consistently provides eco-label
on value chain players and infrastructure providers through subsidies for the acquisition of both new pure EVs and
the provision of financial instruments, making the transition Waivers or reductions of taxes or fees normally applied
to conventional vehicles, such as registration fees, road plug-in vehicles, subject to maximum permissible emissions
to electric fleets a more viable and attractive option. levels. In 2020, the Rabla Plus programme provided one of
taxes, parking fees, or congestion charges.
Public institutions such as infrastructure funds and the highest premiums for electric car purchases in Europe,
development banks can offer a range of subsidies and Bonus payments with 2 888 EVs acquired through it from 2017 to 2019.
incentives to promote the adoption of EVs in the delivery In 2019 alone, 1 538 EVs were financed, representing
Additional payments or rewards for purchasing or using
sector, ranging from subsidies and tax credits to produce 84% of the total EVs registered that year [34].
EVs or related services, such as free charging stations,
and purchase EVs and EV components, to the provision to access to bus lanes, or loyalty programmes.
financial institutions and companies with credit lines and
guarantees, thereby reducing risks and enhancing the Preferential loan conditions
feasibility of various electrification projects. Financing Banks and financial institutions can also offer specialised
instruments can also be used to boost the establishment of financing solutions for commercial fleets looking to adopt
critical infrastructure that typically requires high upfront EVs, and discounted EV loans.
investment and extended construction periods, enhanced
grid capacity, and fast charging technologies, and to
provide incentives for scrapping ICE vehicles.
It is also important to note that many countries differentiate

between incentives for private and commercial use.
Financing vehicles and structural investments 13. Policy measures9

In addition to purchase incentives, governments and
regulators have a crucial role in designing policy measures To drive these initiatives,
to boost the demand for EVs without imposing fiscal
burdens on the state. These measures may include governments derive
creating dedicated lanes and parking spaces for EVs substantial benefits
and designating zero-emission commercial vehicle zones.
To drive these initiatives, governments derive substantial
from intelligence sharing
benefits from intelligence sharing with platforms and with platforms and
EV operators. These collaborations allow them to gain
EV operators.”
valuable insights that can drive efficient and well-informed
infrastructural investments, that not only aid delivery
companies in optimising their operations but also create
a positive social impact by enhancing the safety and
convenience of urban transportation for citizens.
Other policy measures involve the efforts toward

standardising chargers and accessibility of stations,
as well as regulations that promote market openness
to new actors and business models within the charging
infrastructure sector. Furthermore, some government
interventions encompass the implementation of fleet
mandates with progressively increasing EV requirements
over time and the enhancement of fuel economy
standards [26].
Spain Model: 3PL
In Spain, Glovo has committed to transitioning its entire In Croatia, Glovo collaborates with 3PL companies
owned fleet, which consists of over 300 motorbikes, to responsible for managing the delivery fleet. In 2022,
EVs. This fleet is exclusively dedicated to facilitating the company’s primary logistic partner made the strategic
deliveries from Glovo’s 28 micro-fulfilment centres (virtual decision to convert its entire fleet to electric motorbikes.
supermarkets) across 13 cities in the country. Glovo has To facilitate this transition, Glovo worked closely with the
successfully accessed €500 000 in public funding from the 3PL, sharing transparent information and committing to
NextGenerationEU Funds, a programme deployed by the certain volumes of business in the future. This choice
European Union to support the economic recovery from the resulted in a significant increase in the proportion
coronavirus pandemic and build a greener, more digital of orders delivered using EVs, rising from 5% in
and resilient future [35]. This funding covers 20% of the January 2022 to 35% in May 2023. The 3PL also
vehicle costs and up to 40% of the structural investments accessed the NextGenerationEU Funds, to invest
related to EVs, such as charging stations or safety in EVs and charging infrastructure.
measures in the micro-fulfilment centres.
9
T his report focuses on decarbonisation of fleets, therefore will not discuss the role of governments and regulators in supporting the
adoption of sustainable biofuels even though some policy makers are considering interventions in this area, with a focus on enhancing
supply chains, exploring new sources of supply, and advancing innovative production techniques [26].
Green Easybox 14. Investments in new Drone and robot deliveries

technologies, alternative
power sources and
digital systems
Promising new technologies are exploring enhancements
UAE Model: 3PL
in battery capacity, the utilisation of alternative power
sources, electric retrofit, and the scaling of digital systems
At the end of 2022 Talabat launched its first drones
as a way to empower the proliferation of new business
in partnership with UVL Robotics in Muscat Bay.
models and drive operational efficiency. To amplify the
The first-of-its-kind drone delivery in the region was
impact of those innovations and drive greater cost-
successfully piloted and launched and is still operating
effectiveness, it is crucial to secure investments from
today. A less dense area with fewer high-rise buildings
both the private and public sectors.
has allowed such technologies to come to fruition.
To advance along the learning curve, With its success, Talabat is looking to expand the
delivery area and add more drones to its fleet.
reduce costs, and realise significant
societal benefits, governments, especially, In February 2023, the Roads Transport Authority (RTA)
Model:
Romania must play a primary role by providing in partnership with Dubai Integrated Economic Zones
Own fleet targeted incentives and support. Authority (DIEZ) and Talabat UAE, announced the pilot
launch of autonomous food-delivery robots, also known
Battery technology needs to improve, specifically in terms as “Talabots”. The pilot phase saw the introduction of
Sameday is rolling out a network of energy-independent of capacity and efficiency, to achieve longer ranges, reduce three “Talabots” to serve residents in a closed gated
lockers called Green Easybox. These lockers are fully the need for frequent charging, and therefore address range community. The robots travelled within a 3km radius
powered by solar energy, they are interconnected, anxiety. Furthermore, companies are investing in alternative from the launch point, ensuring a speedy 15-minute
monitored and managed remotely, using Sameday’s power sources, such as hydrogen fuel cells, which hold delivery time. The launch of autonomous delivery robots
proprietary technology. They also have a high-capacity significant promise in applications where extended range was part of ambitions to support riders in the next
internal battery, optimised by the company’s specialists. and heavy payloads are required. Electric retrofit aims to generation of sustainable delivery by having them cover
This guarantees the operation of the device, regardless offer a solution to convert ICE LCVs to electric drivetrain short-distance deliveries to increase efficiency, fleet
of the weather conditions. while ensuring that vehicle quality and specifications are optimisation and reduce carbon emissions. This required
maintained. Retrofitting is gaining interest as a solution for extensive mapping of the location and was limited to
The first parcel locker fully powered by solar energy was
actors looking to transition to zero emissions and cut down the vendors and customers of the community. However,
inaugurated as the 2 000th Easybox. Currently, 36 lockers
their TCO, all while retaining their existing vehicles. Despite the pilot success has built interest in expanding the
have been installed in Romania, strategically positioned
promising partnerships to develop proofs of concepts and coverage of the “Talabots”.
near residential centres, office spaces and shopping
pilot programmes, widespread adoption still necessitates
areas. By allowing for order consolidation, this solution
a substantial investment and research boost.
helps to reduce up to 50% of the CO2 emissions associated
with the delivery and collection of packages. The green Technology enables the development of innovative business technical and servicing support. Additionally, it can
Easybox service is part of Sameday’s effort to develop models and corresponding financing systems tailored to encompass the installation of charging infrastructure and
environmentally friendly out-of-home delivery solutions, EV adoption. We have seen how models like EVaaS are other services, simplifying the transition to electric mobility
and their development is complemented by the use of developing, helping to address the high upfront purchase
electric cars for delivery. costs of EVs. The EVaaS approach not only makes EVs more
for businesses and improving the overall feasibility of EV Despite promising
adoption. However, companies in the industry are relying
accessible but also reduces business risks through dedicated on private investments, as governmental support for what is partnerships to develop
considered high-risk investments is still very limited. Where proofs of concepts
a suitable infrastructure subsists, private investments should
focus on the development of digital systems, such as routing
and pilot programmes,
software, to analyse current mileages, payloads and widespread adoption
distance between drops. This way, data and technology
have become crucial in the EV transition. Notably, DHL
still necessitates a
a logistics company, has invested in a start-up that created substantial investment
an innovative algorithm that factors in various variables, and research boost.”
including vehicle type and EV range restrictions, to optimise
delivery routes for reduced carbon emissions [36].
Other companies are deploying, for example, electric
drones for delivery.
06
THE PATH FORWARD
Electrification represents Key enablers

a unique opportunity
to simultaneously
address a multitude of
objectives, encompassing Policy
framework
environmental
responsibility, social
impact, and enhanced
Stakeholders’
business performance. Infrastructure collaboration
Establishing an extensive A final essential consideration is that achieving scale must

To ensure a swift and successful transition, be done thoughtfully, with a keen awareness of the potential
charging infrastructure risks associated with a rapid transition in an ecosystem that
it is imperative to approach electrification
as a holistic system, underpinned by critical The development of a robust charging network is needed to may not yet be fully prepared. Images of obsolete EVs
and interconnected components. Consider, Access to meet the fleet’s operational requirements. This effort requires accumulating in urban areas [37] bring to light a significant
finance Technology
for example, the need for delivery companies substantial financial and institutional support to prevent aspect of the main environmental challenges in the EV
to have access to an adequate charging potential obstacles from becoming bottlenecks in the landscape: resource extraction, waste management of
infrastructure before embarking on the electrification process. Innovative business models are EV and batteries (LIBs), and health impacts of the
transition, while infrastructure builders instrumental in expanding charging stations and their disposal of LIBs.
seek high adoption before committing to accessibility.
Robust policy framework to create a favourable The carbon footprint associated with the production of
investments. Balancing this intricate system
of relationships, containing trade-offs and environment for the growth of electric deliveries Technology aligned with vehicles and batteries poses a significant challenge in
achieving the carbon reduction goals that EVs are meant to
complex interactions, is essential to To drive the transition effectively, policy needs to support changes with operational needs
achieve. To avoid dirty electrification, it is essential for the
achieve significant market uptake. legislation, regulatory support and appropriate subsidies. This demands Technology serves as an enabler of electrification by industry to pursue clean energy procurement, through power
governments are not only financially and institutionally capable, but able continually advancing the efficiency, accessibility, and purchase agreements (PPAs) or other instruments. Moreover,
to provide accessible financial incentives while pursuing ambitious practicality of EVs. Through innovations in battery collecting, disposing, and recycling LIBs remains an
innovation policies. Creating trust and confidence in entrepreneurs and technology, charging infrastructure, and fleet management underdeveloped process. Despite the existence of recycling
companies is a crucial aspect of the overall policy environment. software, technology enhances the viability of EVs. It programmes, their reach is limited, and the recovery rates
enables longer ranges, shorter charging times, and efficient are still suboptimal. This, in turn, drives a loss of materials,
Development of viable financial support charging management, addressing concerns like range the emergence of illegal activities, and a concerning lack of
EV adoption may entail substantial capital costs, despite vehicle prices anxiety and infrastructure constraints. Moreover, technology- accessible recyclable materials for the industry. It is evident
being reduced over time. The establishment of charging infrastructure driven business models, such as EVaaS, alleviate upfront that while the electric transition presents a promising path
also introduces significant expenses, often including space acquisition, costs and facilitate EV adoption. toward sustainability, it must be executed with prudence and
installation or leasing for charging stations. Accessible financial support under an integrated approach. Addressing this type of
can not only facilitate early-stage investments but, together with a Close collaboration with public challenge is imperative to fully realise the benefits that
favourable policy environment, is pivotal to fostering the development and private stakeholders EVs are intended to bring.
and scale of innovative solutions.
Achieving a successful transition demands close
coordination, and financial and policy alignment between
government bodies and private entities, as they collectively
shape the ecosystem. Drawing from lessons learned from
early adopters and in local pilots is also essential to define
a roadmap for the transition and improve efficiency and
resource utilisation.
07
CONCLUSION
We believe EVs are set However, this transition requires a comprehensive and collaborative
approach from stakeholders within the ecosystem. As delivery platforms
Companies mentioned in this report
to shape the future of increasingly commit to electrification, key elements such as operational
models, infrastructure, regulations, and financing must adapt to this new
Company Headquarters Classification
food, grocery and retail reality. Emerging markets for electrification must be able to rely on
delivery, offering a proper regulatory support and financing mechanisms, as policy and eMAG Romania Food, grocery and ecommerce
finance are critical enablers of the transition. Vehicle manufacturers,
compelling combination delivery platforms, and EV operators must reimagine their strategies and Glovo Spain Food and grocery delivery
of economic, social, and embrace innovation to stay competitive. OEMs should not only transform
Gogoro Taiwan EV operator, battery swapping
their vehicles but also rethink their commercial approaches.
environmental benefits.
Platforms need to explore diverse collaboration models to ensure Flink Germany Grocery company
efficient resource utilisation, and support and reward their drivers in
leading the transition. Drivers, too, must be informed and empowered iFood Brazil Food and grocery delivery
to make the switch.
ODA Norway Grocery delivery
For the vision of an electrified delivery to become a reality, all
ecosystem players should come together to develop a holistic solution Sameday Romania Delivery company
that enables overcoming the multifaceted challenges posed by the
electrification process. Swiggy India Food and grocery delivery
Abbreviations and acronyms takealot.com South Africa Food, grocery and ecommerce
2/3/4W: Two, three and four-wheeler vehicles Talabat United Arab Emirates Food and grocery delivery
BEV: Battery electric vehicle Vammo Brazil EV operator, battery swapping

Capex: Capital expenditure
ENO: Electric network operator
EV: Electric vehicle
EVaaS: EV-as-a-service
EVCIPA: Chinese Electric Vehicle Charging
Infrastructure Promotion Alliance
GHG: Greenhouse gas emissions
ICE: Internal combustion engine
LCV: Light commercial vehicle
LIB: Lithium-ion battery
M-CaaS: Mobile-charging-as-a-service
NDC: Nationally determined contributions
OEM: Original Equipment Manufacturer
Opex: Operating expenditure
PPA: Power purchase agreement
SOC: State-of-charge
TCO: Total Cost of Ownership
UACA: UAE Alliance for Climate Action
08
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ELECTRIFYING PROGRESS

Scaling zero-emissions delivery of

grappling with a dilemma: how to reconcile 02 INTRODUCTION 8

ELECTRIFICATION Battery swapping

OF DELIVERY IS A Developing EVs fit for commercial purposes

Private financing for delivery partners

PROFOUND ANSWER Gradual fuel duty reduction 33

Expand pool of low-barrier vehicles 34

06 THE PATH FORWARD 42

09 ABOUT THE AUTHORS 49

01 SCALING ZERO-CARBON DELIVERY IN FOOD, GROCERY AND RETAIL SECTORS

We are excited to share this report with you, an unmistakable

At Naspers/Prosus, our investment thesis has helped us

Electrification of It promotes environmentally friendly urban practices, mitigates localised

Mazzucato contends that governments can shape

The on-demand delivery industry has experienced a

1 Delivery platforms: significant surge in recent times, driven by the increasing

State of electrification across selected regions

* Privately owned vehicles only.

This report acknowledges last-mile as the stage

By 2025, EVs are expected to have

Challenges related to investment and financing are also

Business model Contribution Capital Time Size of

2. Development of changing infrastructure +

‘Battery swapping service’ – Gogoro,

‘Custom-built refrigerated trucks’ – Oda,

7. Gradual fuel duty reduction

8. Preferential treatment of electric deliveries + ‘Development of green zones’ – iFood

9. Expand pool of low-barrier vehicles +

‘Empowering South African youth’ – takealot.com,

11. Carbon credits for drivers

‘Accessing public subsidies for EV purchase’ – eMAG,

13. Policy measures +

Own fleet Freelancers Price Practice Public acceptance

Delivery companies can opt for in-house fleet

Smart timesharing of e-bikes Testing electric cars in Romania 2. D

While limited battery range can potentially

Alternatively, proactive measures by other stakeholders are

3. Battery swapping Tackling the object of affordability, the separation of the

4. EV fuel cards The market’s growth potential for

which will be taken into service by takealot.com in

7. Gradual fuel duty 8. P

Development of green zones 9. Expand pool of Empowering South African youth

It is also important to note that many countries differentiate

Financing vehicles and structural investments 13. Policy measures9

Other policy measures involve the efforts toward

Spain Model: 3PL

Green Easybox 14. Investments in new Drone and robot deliveries

Electrification represents Key enablers

Establishing an extensive A final essential consideration is that achieving scale must

BEV: Battery electric vehicle Vammo Brazil EV operator, battery swapping

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2. Development of changing infrastructure +

7. Gradual fuel duty 8. P

Development of green zones 9. Expand pool of Empowering South African youth

Green Easybox 14. Investments in new Drone and robot deliveries