Logistics companies could save over €500M using mixed electric delivery fleets, reveals EIT InnoEnergy’s new study

Globally, logistics providers worldwide are on a quest to decarbonise last-mile deliveries, seeking cost-effective and sustainable solutions. 

A trend gaining momentum in this area is the transition towards mixed electric fleets, specifically incorporating e-cargo bikes. 

“Logistics providers today are dealing with many simultaneous challenges: rising parcel volumes, stricter city regulations, and the need to save costs in a low-margin business,” says Jennifer Dungs, Global Head of Mobility at EIT InnoEnergy. 

These eco-friendly transportation modes not only promise significant economic savings but contribute to substantial emission reductions, offering a win-win for both logistic operators and urban cities.

Switching to a mixed fleet can save significant cost

A recent study conducted by EIT InnoEnergy, an innovation engine in sustainable energy supported by EIT, has found that using a combination of e-cargo bikes and e-vans in urban logistics operations can lead to significant cost savings compared to using a 100% e-van fleet. 

“This study demonstrates that e-cargo bikes are not only a sustainable way to address these challenges, but also cost-competitive and viable for major logistics players – already today, and even more so by 2030,” says Dungs.

Additionally, this approach can contribute to improving the overall quality of life in cities.

The announcement comes at a time when logistics companies are looking to improve margins and reduce CO2 emissions due to e-commerce driving parcel growth in the EU by 8-14 per cent annually

Upcoming regulations like Stockholm’s inner city ban on combustion-engine vehicles are increasing pressure on logistics operators to decarbonise their last-mile delivery operations. 

EIT’s new study compares the cost, operational, and sustainability impacts of adding e-cargo bikes to ICE van fleets, e-van fleets, and mixed fleets, filling the existing knowledge gap.

Emission reduction up to 80%

The study found that for a logistics company delivering 2 billion parcels a year, switching to a mixed fleet of e-vans and e-cargo bikes could result in annual savings of €95-156M. 

In a densely populated city, the total cost per parcel for a 60 per cent e-cargo bike/40% e-van fleet was €1.36, compared to €1.41 for a 100 per cent e-van fleet. 

By 2030, these savings could increase to €390M for the baseline case and €554 million for an optimised scenario with 80 per cent e-cargo bikes.

Dealing with hidden costs and complexities

The study also examined the hidden costs and complexities of implementing mixed fleet models. 

There are additional costs associated with establishing and operating Micro Fulfilment Centres (MFCs) for e-cargo bike delivery, as well as increased personnel costs for parcel sorting and delivery. 

However, these new costs are offset by a 12 per cent cost decrease from vehicle and charging infrastructure savings.

Lower leasing costs and reduced charging infrastructure needs for e-cargo bikes reduce costs by €0.16/parcel, says the report. 

Reduces congestion and pollution

The introduction of e-cargo bikes into delivery fleets has significant benefits for cities. By promoting the use of mixed fleets, cities can reduce CO2 emissions, congestion, and competition for space. 

The study estimates that e-cargo bikes could reduce emissions from last-mile logistics by up to 80% in Europe’s 100 largest cities.

The total number of delivery vans in the 100 largest EU cities can be reduced up to 120,000, saving 98–122M kg of CO2 per year and cutting last-mile emissions by 73–80 per cent.

Reduced charging for e-cargo bikes compared to e-vans could save €24–32 million in electricity costs across the entire European e-delivery fleet, adds the report. 

Compared to 100 per cent e-van fleets, the study shows that mixed fleets reduce pressure on local grids, saving the equivalent of up to 850 households’ annual energy demand per city.

Jennifer Dungs adds, “To harness the potential of mixed fleets, cities, and logistics providers have a vested interest in working together. There’s great potential here for the development of public-private partnerships to optimise infrastructure planning, ensuring that the full sustainability, space, and cost-saving benefits are realised. This study is designed to guide decision-makers in Europe through the challenges of managing growing parcel volumes, maintaining cost efficiency, and making last-mile delivery more flexible and sustainable.”

Proper collaboration is the need of the hour

The shift towards zero-emission vehicles is underway, but optimising the movement of goods using eco-friendly vehicles designed for efficiency and sustainability can offer additional benefits. 

A study shows that incorporating mixed fleets of e-vans and e-cargo bikes can already offset the costs, resulting in savings per parcel. 

However, the results depend on the fleet composition and the type of city. 

Collaborations between logistics companies, cities, vehicle and infrastructure manufacturers, and financial institutions are necessary to transform last-mile logistics into a more sustainable and liveable operation.

EIT InnoEnergy: What you need to know

EIT InnoEnergy is an innovation engine in sustainable energy, providing the technology, business model innovation, and skills needed to accelerate Europe’s decarbonisation, re-industrialisation, and energy security. 

InnoEnergy invests in a range of areas, including energy storage, transport and mobility, renewables, energy efficiency, hard-to-abate industries, smart grids, and sustainable buildings and cities. 

It has a portfolio of over 200 companies estimated to generate €110B in revenue and save 2.1G tonnes of CO2e by 2030. 

InnoEnergy is driving three strategic European initiatives: 

• The European Battery Alliance (EBA)
• The European Green Hydrogen Acceleration Center (EGHAC)
• The European Solar Photovoltaic Industry Alliance (ESIA)

EIT InnoEnergy has a network of 1200+ partners, 35 shareholders, and a 200+ strong team with offices across Europe and in Boston, US.