Knocksense EV Series| How EVs in logistics sector are changing the dynamics of B2C
Fuel rates directly impact industries that are highly dependent on it. Since fuel accounts for a significant share of logistics costs, e-mobility acts as a ray of hope for the revival of the logistics sector in India, in an all new avatar.
Various B2C companies such as Swiggy, Zomato, DHL, and Domino's, among others, have begun to adopt EV 2-wheelers for cost-effective service deliveries. Especially in tier 1 cities like Mumbai and Bengaluru, the logistics sector is relying heavily upon e-vehicles and in the coming years, it sure will be a game-changer for the whole industry.
In this EV series capsule, we will uncover how the adoption of EV 2-wheelers has altered the logistics supply chain in India.
Demand for EVs led by unavoidable circumstances
Reportedly, India's e-commerce market was valued at $46.2 billion in the year 2020, and is expected to grow to $111.40 billion by 2025. The unprecedented boom in the e-commerce business has created huge opportunities for startups to swoop in and pick up the pieces, and offer new mobility options.
The COVID-19 pandemic forced us to go online, with a large number of startups and people's buying practices going online, connectivity to consumers became extremely important.
Other than the pandemic and rising fuel prices, operations in the logistic sector have changed due to the growing popularity of e-retailers and hyperlocal delivery in India. These are major contributors to the fact that more businesses are opting for electric mobility.
Players building the Neo-Logistics sector
The commercial use of EVs in India has been welcomed by large logistics companies, e-retailers, e-commerce and food aggregators. The sector is making active efforts to target a green supply chain in the next 5-10 years. More companies are adding EVs to make transportation pollution-free and their businesses cost-effective.
One company that is changing its approach toward EVaaS is Zypp Electric, an EV-as-a-Service (EVaaS) platform. Zypp recently launched its, 'Zypp Chalao, paise aur pollution bachao' campaign.
Acknowledging the need, the company is offering EVs for rent, and partnering with e-commerce delivery platforms, food aggregators and e-retailers. The move has helped Zypp offer environmental friendly end-to-end solutions and also enabled its partners in the grocery segment to cut down delivery costs by 10%.
Addressing the increasing demand for food delivery across the country, various platforms like Swiggy, Zomato, Domino's and others have started adopting EV 2-wheelers as a means of delivery.
Another such player that is making use of EVaaS is Yulu, a mobility platform which enables integrated urban mobility across public and private modes of transport. Swiggy in Mumbai has started using Yulu e-bikes, and Domino's, in several locations like Lucknow, Mumbai and Bengaluru, among others, has been using Revolt e-bikes.
Advantages of using EV-as-a-Service
Although EVs are more expensive to buy, they have significantly lower running and maintenance costs when compared to petrol or diesel equivalents. Here, we will go through some of the underlining benefits of using EV-as-a-Service (EVaaS):
With zero tailpipe emissions, it is estimated that an EV could emit between 15-40% less CO2 over its lifetime than an ICE vehicle.
Using EVaaS can lead to a significant reduction in fuel costs, likely increasing the profit and daily rideability.
As the adoption of EVaaS increases, it will create opportunities for startups to innovate in various technologies surrounding EVs.