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    Exclusive: New-age electric vehicles for rapid grocery delivery

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    With fuel prices at record high rates and expected to rise even further, electric delivery vehicles can prove to be a boon for convenience store owners aiming to offer quick and efficient home delivery services to their customers. 

    Market reports claim that two-thirds of Britons are now forgoing weekly shopping for spontaneous store visits based on their next meal, leading to smaller basket sizes. This coupled with the fact that more and more Britons are now getting used to ordering groceries at home, the coming time is expected to see a further spurt in home delivery orders.

    With zero carbon future commitments in picture along with the recent spike in fuel prices, it is time that retailers look beyond the conventional vehicles to a whole range of new-age delivery methods.

    The makers too are adapting quickly, flooding the market with city-friendly delivery vehicles, most noteworthy among which are electric cargo bikes.

    Ian O’Connor, MD of Eskuta- the UK’s cargo bike brand operating since 2015- believes that last mile delivery is now part and parcel of most grocery retailers’ offering, partly due to changing consumer habits formed by the advent of Covid and the resulting lockdowns. 

    “Many consumers now require delivery and with younger consumers, this is almost a given. So, the challenge for retailers is how they effectively implement their last mile delivery strategy, whereby they can retain their margin and mitigate against other market challenges from the likes of dark grocers,” he said.

    Who’s doing what

    With the UK transport sector accounting for over a quarter of national CO2 emissions, and around 92 percent of this is due to road transport, it is time that retailers consider doing their bit and adapt to more sustainable options.

    Oxfordshire-based company Electric Assisted Vehicles (EAV) has completed a trial of its electric eCargo bike with Asda. Vehicles such as these, says Asda’s vice president of online grocery, Simon Gregg, help the retailer to “look to the future of retail” and consider new and innovative ways to “navigate low emission zones and pedestrianised areas”.

    Tesco has started using battery-powered delivery lorries in what it said was a UK supermarket first in a bid to reduce its carbon footprint. By 2025, the company plans on reaching zero-emissions transport operations. The supermarket has also begun transitioning its more than 2,000 home delivery vans to be fully electric. 

    As of this week, Sainsbury’s has also begun delivering online orders by electric van  ‘Evie’- the zero-emission electric van, across central and east London in a trial that is expected to spread more widely. 

    A second electric van, dubbed ‘Stevie’, will join the fleet in May, ahead of a potential rollout. Sainsbury’s has also been using electric cargo bikes to deliver in South London since April last year.

    Co-op plans to replace its entire home delivery fleet of more than 200 diesel vans with electric vehicles by 2025. Stuart, which delivers on behalf of Co-op at more than 180 of its food stores, has been trialing green delivery vehicles, including e-mopeds and cargo bicycles.

    Exclusive: New-age electric vehicles for rapid grocery delivery
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    Apart from biggies, many independent retailers too are taking the plunge and acquiring electric bikes and cars for home deliveries.

    Retailer Mos Patel, owner of Family Shopper in Ashton and Premier Store in Oldham, owns an electric fleet- cars as well as bikes- which he uses for last mile deliveries on a daily basis.  Between the two shops, he has eight electric cars- two hybrids, and three electric bikes.

    Acquiring his first car in 2019, he was among the first ones in the country to use electric vehicles for last mile deliveries.

    “It was too early. The world was going for fuel cars but I thought to invest in them anyway. They were about £4000 per car at the time,” Patel told Asian Trader.

    On the other hand, Ocado Zoom has launched a trial of electric, electric assisted and pedal-powered vehicles as part of a target to become net zero carbon emissions by 2035.

    Why electric

    While all sorts of delivery businesses can easily make use of electric delivery fleets, this practice is most suited to businesses that perform last-mile deliveries within a fixed and limited radius- such as milk, groceries, or food delivery businesses.

    Among other options, it is electric bikes like Eskuta and e-cargos like EAV which perfectly answers the requirement of a convenience store-owner.

    These bikes can cut traffic in busy city centres as they can be ridden in cycle and bus lanes. Moreover, most of them are almost silent, and can be used late at night in provincial locations, which have restrictions on petrol scooters.

    Exclusive: New-age electric vehicles for rapid grocery delivery
    Image by Eskuta

    Such carbon neutral solutions usually do not require licence or registration and anyone over the age of 16 can legally ride in a commercial environment thus opening a larger staffing pool for a small business owner. Only general safety is required, like wearing helmets, when using such vehicles on the road. 

    However, noteworthy here is that such powered two-wheelers are subjected to a different regulatory framework which depends on their power so it is better to double check the licence and insurance requirement with makers and authorities. 

    Most such electric vehicles are not only quick and efficient but also offer eye-catching easy ways for marketing and promotion as most of the time, makers are ready to customise the vehicles as per demand.

    Retailer Patel vouches for electric vehicles for similar reasons- no licence requirement and completely “professional” look. However, he also advises others to be double sure on insurance requirements.

    Patel’s vehicles are neon pink in color with eye-catching branding and easy to spot on roads- something due to which they double up as advertising vehicles too.

    Among the fleet, Patel owns two Eskuta bikes, one he acquired himself and another he got through Bookers. All his vehicles are branded as per his needs and requirements.

    “We charge them overnight and it lasts about 15 miles so that’s more than enough anyway. They usually last basically two to three days as we use them for local deliveries only,” said Patel.

    Eskuta’s O’Connor reveals how they do everything in-house, and provide the retailer with a visual mock-up of what their branding will look like on the bike or on the rear storage box. 

    “We can pretty much create anything and in some cases, we can change the colour of the bike should this be something the retailer requires,” O’Connor told Asian Trader.

    Exclusive: New-age electric vehicles for rapid grocery delivery
    Image by Eskuta

    The efficiency of electric delivery vehicles can also be ascertained by the fact that parcel delivery companies too are increasingly embracing emissions-reducing technology and adapting their approach to last-mile deliveries. DPD, for example, recruited 3,500 new drivers and expanded its fleet of electric vans from 130 at the start of 2020 to more than 700 by year-end.

    Royal Mail is also trialing two new kinds of micro electric vehicles for small parcel and letter deliveries.

    Other local companies like UPS, and Gnewt too are successfully working with electric vans and cargo bikes. The first outcomes show a decrease in pollution, safer traffic, and less disturbance by using smaller vehicles. 

    Also, apart from the initial purchase price, e-bikes are incredibly cheaper to run. 

    Charging an electric bike battery can only cost a few pence per day and servicing costs are substantially cheaper when compared with a conventional vehicle. Also, there’s no road tax or MOT test checks to worry about. 

    Top options

    Eskuta is one of the UK’s market-leading e-cargo vehicle manufacturers and suppliers. The company, which manufactures electrically assisted pedal cycles (EAPCs), and e-scooters, has secured delivery contracts with several companies such as Domino’s and Just Eat and is working with a few symbol groups around the country.

    Eskuta, which has recently expanded into a second unit at Warwickshire County Council’s Bermuda Park Innovation Centre, designs and manufactures electric bikes and scooters which have proved to be a hit with fast-food delivery firms.

    The makers claim to have more e-cargo bikes working in the last mile delivery than any other manufacturer in the UK. They also enjoy massive retail partnerships with Selfridges & Co, Evens Cycles, Harrods and Very Catalogue.

    Eskuta SX-250 has the architecture of a motorcycle with all the cost savings of a cycle, making it a cost effective last mile delivery solution. It offers approximately 50-mile range on a single 7–8-hour charge.

    Exclusive: New-age electric vehicles for rapid grocery delivery
    Image by Eskuta

    “The great thing about the Eskuta SX-250 is that it comes as standard with a charging adaptor that fits any 13-amp standard electricity supply. The battery can be removed, so charged in-sore, or swapped if the customer has bought an additional battery, or the charger can be connected directly to a charging port on the bike,” O’Connor said.

    EAV is another popular name in this segment. Its vehicle weighs 150 kg and is made entirely from sustainable and recyclable materials, including carbon composites. It’s bio-mechanical electric hybrid vehicle, like the EAV 2Cubed has a fixed rear box that can carry 20 percent of the capacity of a mid-sized diesel-engine van.

    Another option available is TRIPL vehicles. They are small and maneuverable meaning that they can more easily access confined areas that are tricky to reach with a standard, larger delivery vehicle.

    Moreover, TRIPL scooter features a spacious cargo hold that can accommodate big packages. The flexible cargo module can be customised and configured to exact specifications. It can be setup with a heating, cooling or freezer module for food delivery purposes while the shell of the scooter can be customised for advertising purposes. With an 8.0 kWh lithium-ion battery, TRIPL can drive up to 100 km.

    Specialised Turbo Vado 4.0 is another recognised name. Its high capacity battery means there’s plenty of power to tap into, and results in an extremely impressive range of up to 90 miles with pedal assistance.

    Wrap

    Road to zero emission has its own set of challenges such as initial cost and lack of charging points. 

    Electric vehicles cost about three times more than conventional ones. At the same time, authorities need to come up with more charging stations, potentially faster ones to ensure that sufficient time is provided to charge vehicles between routes, thereby combating potential waiting times.

    However, the lack of charging infrastructure should be of less concern for  convenience store owners as the range of delivery is usually shorter and delivery vehicles can return to their bases (depots) in a short time.

    As convenience takes the centre stage, so does the demand for fast, efficient, and consistent last-mile delivery. The pressure ultimately comes on retail businesses to innovate not only to meet the demands and desires of consumers but do so with respect to the environment and move to net zero carbon emissions. 

    No wonder, electric bikes and other such vehicles are increasingly emerging as a perfect solution for small local deliveries.

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