Category Include
- Vehicle range limitations- limited range in comparison to ICE vehicles can impact range and efficiency of delivery operations.
- Battery size vis à vis capacity- this is especially important in 2 & 3 wheelers where space is limited and delivery space vies with battery size alongside range expansion requirements.
- Availability of sufficient EV models suitable for various types of cargo delivery operations including heavy loads and specialized requirements.
- Route optimization- Efficient routing and navigation.
- Use in rough terrain, water logged areas etc.
- Availability of Charging infrastructure- availability and accessibility of a reliable and widespread charging infrastructure.
- Design of Charging infrastructure- design and siting of delivery hubs which ensure seamless operations and minimize downtime and parking for a large number of vehicles.
- Availability of battery swapping stations, models, and fast charging- charging times are higher for EVs compared to fueling for ICE vehicles- greater availability of battery swappable models and also availability of swapping stations are critical along with availability of fast charging and models which support the same.
Example
- A delivery company collaborates with an AI start-up to optimize routes for their electric fleet based on real-time traffic data, battery charge levels, and delivery points. This not only maximizes the deliveries they can make on a single charge but also helps in effectively managing the charging cycles, thereby extending the battery life and reducing operational costs.
- A delivery company teams up with a tech startup to implement IoT (Internet of Things) sensors in their electric vehicle fleet. These sensors monitor various metrics like battery health, temperature, wear and tear of parts, and more. This real-time data is then analyzed using machine learning algorithms to predict when maintenance is due or if there’s an imminent battery failure.
- A delivery company collaborates with a hardware startup that has developed an advanced modular battery system for electric delivery vehicles. These batteries are lightweight, quick to swap out, and come with integrated cooling systems to prevent overheating. Delivery personnel, instead of waiting for their vehicles to charge, can simply swap a drained battery for a fully charged one at designated swap stations scattered across the city.
- The delivery bags/packages are redesigned with Thermo-Electric Generators. These generators convert the heat difference (between the hot food inside the bag and the cooler outside environment) into electricity.
Category Include
- Inability to prioritize EV transition costs over other immediate day to day costs by delivery workers.
- Lack of knowledge- many delivery workers are unaware Electric Vehicle (EV) technology, charging infrastructure and maintenance requirements.
- Delivery driver perception and acceptance- concerns about the reliability, sustainability and suitability of EVs for their specific tasks can affect adoption and acceptance.
- Avoiding coercion- drivers should be able to voluntarily adopt EVs rather than be pressured to accept EVs because of government regulations and company policies and adequate engagement and socialization are key to this.
Example
Innovations or strategies in this category relate to regulatory, policy-driven, or administrative measures that can foster a more favorable environment for electric last-mile deliveries.It could involve governance structures, policies, regulations, and standards to facilitate and regulate the transition. This category is essential for ensuring a smooth and coordinated effort among different stakeholders, including government bodies, industry players, and the public.
Category Include
- Existing policies might lack targeted incentives, access to subsidies and/or tax benefits for the last mile sector companies and drivers.
- White-board number plates on 2-wheelers and lack of access of special incentives for these delivery drivers based on vehicle registration status.
- Lack of clear transition targets at state government or city levels.
- Lack of effective stakeholder engagement and inter departmental coordination.
- Addressing gaps such as financial incentives, streamlining of regulatory procedures and developing supportive frameworks can encourage EV adoption in the last mile sector.
Example
- A delivery company collaborates with city planners to set up dedicated fast-charging EV stations in strategic urban locations, exclusively for delivery vehicles. They secure permissions for these stations in exchange for providing data on EV operations, which the city uses to refine its EV policies.
- Recognizing the reach of India Post, which penetrates even the most remote villages, a leading e-commerce delivery company initiates a collaborative pilot project supported by the government. In this initiative, the e-commerce company provides India Post with a fleet of electric vehicles for its postal delivery operations. During non-peak postal delivery hours, these electric vehicles double up for e-commerce deliveries, especially in remote areas that are traditionally challenging for e-commerce logistics due to cost constraints. To facilitate this, Smart Lockers are set up at India Post locations. E-commerce packages bound for remote areas are first delivered to these lockers. India Post personnel then make the final delivery using the provided electric vehicles during their regular rounds or during dedicated e-commerce delivery windows. The government, seeing the potential for job creation, reduction in emissions, and enhanced postal service efficiency, offers subsidies and policy support to make EVs more affordable and to streamline the operational process.
Category Include
- High upfront costs of EVs.
- Lack of affordable financing options from financial institutions.
- Lack of access to finance due to low credit scores of delivery drivers.
- Lack of innovative financing models such as low interest loans, leasing options or pay as you go models.
- Resale value of EVs and depreciation.
- Limited availability and financing for used EVs.
Example
- A delivery company partners with a green finance institution to create an innovative leasing model for electric delivery vehicles. Delivery personnel can lease the EVs at a reduced cost, with a portion of their earnings going towards the lease, and they have the option to own the vehicle after a certain period.
- Delivery partners are given a significant bonus over the market price when they sell their old, traditional combustion-engine vehicles back to the company.
- Tax breaks by the state government exclusively for delivery partners.
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