Package delivery company and supply chain management solutions provider UPS plans to convert its existing vehicles into electric vehicles, instead of buying new ones.
UPS currently has more than 770 electric or hybrid electric vehicles around the globe. The company will partner with Unique Electric Solutions LLC (UES) to implement the conversion.
The New York State Energy Research and Development Authority will provide US$500,000 in funding, the Hong Kong Economic Journal reports.
The conversion will involve replacing the fleet’s conventional setup with a 225kW-electric motor. The UES website shows the new system will boost the energy efficiency of the new system by up to 20 percent.
The project is expected to convert up to three of diesel trucks daily, while the company plans to transform about 1,500 vehicles, equivalent to two-thirds of UPS’ New York City fleet, by 2022.
The company has recently said that one in every four vehicles bought by 2020 will use alternative fuels or some other “advanced technology”.
It also bought 200 hybrid trucks in October, and is the first customer for Daimler’s new all-electric Fuso delivery trucks.
In addition to electric trucks, UPS is developing a drone delivery service to raise the efficiency of the business. According to the company, the cost of delivering goods to remote areas is very high.
With the drone service, each driver will run one mile less every day, saving the company US$50 million a year.
Mark Wallace, UPS senior vice president for global engineering and sustainability, said drone delivery can help the company respond to the growing business brought about by e-commerce.
The drone delivery service is still being tested. The company may need approval from the US Federal Aviation Administration.
This article appeared in the Hong Kong Economic Journal on Nov. 14
Translation by Jonathan Chong
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