Logistics Middle East
CORONAVIRUS AND ITS POTENTIAL IMPACT ON THE SHIPPING INDUSTRY
by Marco De Leo, partner (Dubai), and Enrico Vergani, leader of the Shipping and Transport Focus Team (Genoa) of BonelliErede
MOTO electric motorcycles, riders can swap out their batteries in as little as 30 seconds, giving them more ‘up time’.
From a CapEx perspective the cost of electric motorcycles are higher, yet the OpEx is significantly lower, meaning the vehicles are guaranteed to pay for themselves within 12 months. Hopefully as we work with the RTA and DOT, we’ll be able to negotiate incentives beyond the financial one to the operators, and those with the want to make a difference, will of course benefit from the PR angle ‘would you rather order your food from a sustainably focused business, or one that isn’t?’ Especially if the prices and selection are the same.
However, it doesn’t end there, some of the operators do not pay the riders a salary, instead they pay per delivery, plus the riders pay their own fuel and take five hours from their month to accommodate servicing, maintenance and fuelling. Meaning the riders are working longer hours, under pressure, to achieve the minimum delivery order.
With the operational costs being reduced by >50% - its reported the average cost of delivery in the UAE is AED 30 - this would encourage a safer working environment for riders and helping to avoid fatalities and road accidents from the two-wheeled delivery riders which provide such an important service to customers needs. What sectors of the logistics/ supply chain industries do you think could most benefit from the use of EVs?
Beyond the electric motorcycles, ONE MOTO is supplying other B2B vehicles including ‘Deliva’ the range of electric delivery vans (grocery, flat bed and pick up) allowing us to facilitate the needs of grocery businesses, supermarkets, home delivery, logistics, couriers as well as the food delivery and last-mile sectors. Keeping our overheads low enables us to pass these cost savings to our customers, meaning operators can double their fleet, for half the cost whilst maintaining a sustainability focus. Many industry experts not that the mining of materials for electric vehicle batteries, plus the generation of electricity to power them, using fossil fuels, is just as harmful to the environment as carbon emissions from fuel-powered vehicles - what would you say to this?
We are in a world that isn’t perfect, we are the first generation to be affected by climate change, and the last one to do something about it. We aren’t able to offer clean energy solutions, nor are we able to miraculously overtake technology. Those experts are right, there is harm to Mother Earth for the extraction of Lithium, however, this is far less harmful than the extraction of fossil fuels, the oil service industry and is undoubtedly cleaner than where we are today.
Many car manufacturers are still investing millions into refining the performance of the combustion engine, this should stop. Why fight a losing battle? Invest in the future (which many are) and cut your losses. I firmly believe, this industry and the way we operate in the mobility sector is successful if we collaborate.
Within the next 10 years, we won’t have as many car manufacturers as we have today, there will be an increase in M&A, JVs and with some lesser known entities - as the big manufactures with the ‘100 year heritage’ aren’t as agile as companies like us and it’ll be the collaborators who make a difference and pioneer an even greater, cleaner energy solution in the future. Is the electric vehicle market growing in the Middle East?
Absolutely it is. It’s an incredible time, many are playing catch up to the evolution that’s happening right now. The government entities are playing their part to facilitate demand and build an infrastructure – yet the investment needed is trying for both the government, customer and EOMs. We will get there, but may need to look at things slightly differently – stop demanding infrastructure, looking at capitalising on the industry progression and think ‘how can we collaborate for sustainable growth?’
ONE MOTO is built on five core values; Environment, convenience, affordability, product/quality and lifestyle. EVs are a lifestyle choice, with more considerations than simply driving and fuel. Our products allow you to charge anywhere, swap out batteries, afford the vehicles without concern and build trust in our vehicles. We’ve avoided the complications surrounding infrastructure from the core R&D phases. We may choose to evolve as society does, but for now, we have a solution to all objections and now it’s time for us to establish ourselves as market leaders.
In March we will be announcing mobile EV car charging for all EV owners. We’ve discovered, many reasons why people aren’t adopting the change at such a rapid pace to other pats of the world is due to convenience and price. If you live in a villa, you’ll probably have your own charger, yet if you are in an apartment block, you don’t have this luxury as landlords, FM companies and ownership rights create the confusion – ONE MOTO Delivering Energy. If we work with OEMs to offer this service, then it’ll help drive sales and place more EVs on the road. Efficient urban mobility is a core element of the infrastructure of smart cities. How is One Moto contributing to the development of smart cities in the UAE?
As a team of avid riders and sustainabilists we are aware of the issues surrounding safety of motorcycle riders, so we’ve developed a solution for this too. Delivered through tech and an inter-connected vehicle eco-system. ONE MOTO are developing an app (with multi-operator API integration) to understand riding styles, behaviours, riding times, impact, traffic hotspots where we can advise and guide operators to further train and develop their staff to protect them. The pressure to deliver high volumes of orders each shift will be reduced by eliminating the downtime, but also shifting the CapEx investment to one of OpEx, encouraging the delivery companies to all pay base salaries without reduction of fuel and servicing. Would you prefer to order from a company with sustainable values and who invest in their rider’s safety?
FROM A CAPEX PERSPECTIVE THE COST OF ELECTRIC MOTORCYCLES ARE HIGHER, YET THE OPEX IS SIGNIFICANTLY LOWER, MEANING THE VEHICLES ARE GUARANTEED TO PAY FOR THEMSELVES WITHIN 12 MONTHS.” ADAM RIDGWAY, FOUNDER AND CEO OF ONE MOTO - ELECTRIC VEHICLES.