FedEx (FDX) is testing electric carts to make deliveries on its signature Express routes in New York City and Toronto.
The company hopes electric delivery carts will help address a lack of parking in cities. FedEx is now testing in New York City and Toronto its EP1 electric cart made by General Motors (GM).
Electrifying the global supply chain has been a slow process for the largest global fleet operators, in spite of a flurry of deals between delivery services and electric vehicle makers.
Rival UPS (UPS) has a commitment to purchase up to 10,000 delivery trucks from Arrival, and it uses electric bikes in Europe. Amazon (AMZN) has a commitment to buy 100,000 electric delivery vans from Rivian (RIVN).
FedEx says it is encouraged by the early results from its pilot program. The company said its tests in New York and Toronto show a courier can deliver 15% more packages a day with the electric carts than with a traditional delivery model.
Using the electric carts can reduce the use of trucks on each delivery route by as much 25% per day, the company says.
FedEx acknowledges that its sample size is small with trials taking place only in New York and Toronto so far. The pilot project will be expanded to 10 North American cities later this year.
FedEx is also testing an electric delivery van in California and has a deal in place to buy up to 20,000 electric delivery vans in the coming years as part of its $2 billion U.S. plan to be carbon neutral by 2040.
