Fedex Express to buy electric vehicles from GM business
Fedex Express will be the first customer of a new General Motors business centered around electric vehicles.
GM’S Brightdrop will offer electric products, software and services for commercial delivery companies like Fedex. Fedex will receive 500 of the company’s electric light commercial vehicle, the EV600, later this year.
GM said in a news release BrightDrop’s services “are designed to help businesses lower costs, maximize productivity, improve employee safety and freight security, and support overall sustainability efforts.”
“Our need for reliable, sustainable transportation has never been more important,” said Fedex Express executive Richard Smith in a statement. “BrightDrop is a perfect example of the innovations we are adopting to transform our company as time-definite express transportation continues to grow. With this new suite of products, we will help improve the safety, security and timeliness of Fedex Express deliveries, while reducing our environmental impact and protecting the well-being of our couriers.”
The EV600 vehicle is built for delivery over long ranges, according to GM. It aims to have a range of up to 250 miles on a full charge and will have more than 600 cubic feet of cargo area.
EVS small but growing part of fleet
Fedex has more than 200,000 motorized vehicles in its fleet. As of fiscal year 2019, the company had 2,944 electric vehicles in service, which included delivery trucks, forklifts and airport ground service equipment.
In 2018, Fedex Express announced it would add 1,000 all-electric delivery ve
hicles manufactured in China for operation in California.
“Families manage a few cars at a time,” GM CEO Mary Barra said in the presentation. “Delivery companies manage thousands, even hundreds of thousands of vehicles.”
Fedex said in its 2020 Global Citizenship Report that there are two main barriers in “electrifying” its massive fleet. One is that the types of vehicles it needs, including longhaul trucks, aren’t available in large enough quantities. The other is a lack of charging infrastructure “sufficient to handle the demands of charging hundreds of vehicles simultaneously.”
Fedex said in the report, released in May, that it is working with manufacturers and collaborating with power utilities to address both issues.
Pilot program with electric pallets
Fedex Express has recently been involved in a Brightdrop pilot program with GM, using its EP1 electric pallets to help move packages.
Fedex Express and Brightdrop plan to conduct a pilot program “in one of the biggest urban centers of the U.S. this quarter,” GM said, without specifying the area.
The EV600 vans are designed to carry EP1S, said Pam Fletcher, GM’S vice president of global innovation, during a presentation at CES 2021 on Tuesday morning. She said these pallets are loaded with goods at a warehouse based on destination. A management platform connects with the pallets so key information like battery status and location can be viewed remotely.
The speed of an EP1 pallet adjusts based on a courier’s walking pace, and EP1S can be tethered together if needed to reduce errors and strain on drivers, Fletcher said.
“Don’t be surprised to see couriers leading EP1S down sidewalks in the next few months,” she said.
Fedex Express couriers were able to handle 25% more packages a day in the initial Brightdrop EP1 pilot, Smith said during the CES presentation. The EP1S are easy to maneuver and employee feedback has been “excellent,” he added.
“We believe Brightdrop will allow for improvements and efficiency at scale, lowering operating costs per mile while improving services for our customers and, of course, solve real issues around emissions and congestion,” Smith said.
Detroit Free Press reporter Jamie L. Lareau contributed to this report.