Food delivery giant Swiggy announced the commencement of trials that will increase the deployment of EVs (electric vehicles) in its delivery fleet. This is a concerted effort to operate more sustainably, go pollution-free and contribute towards the creation of a robust EV ecosystem. These trials are aimed towards Swiggy’s commitment to cover deliveries spanning 800,000 kilometers every day through EVs by 2025.
SoftBank-backed Swiggy has signed an agreement with Reliance BP Mobility Ltd (RBML) to build an EV ecosystem and battery-swapping stations for its delivery partners across the country. This partnership between two leading industry players aims to synergize their strengths of scale, reach, and technology in creating a greener and cost-effective solution for delivery fleets through innovative business models. Additionally, Swiggy has also partnered with Hero Lectro, a leading e-cycle manufacturer, and Fast despatch logistics, a leading last-mile delivery player in the UK to enable end-to-end delivery of Swiggy orders through cargo e-cycles. The trails are currently running in Bengaluru, New Delhi, and Hyderabad.
“Swiggy’s fleet delivers millions of orders each month with our partners traveling an average of 80-100 km daily,” said Swiggy CEO, Sriharsha Majety. “As we continue to work towards providing our consumers with greater convenience, we're also mindful of the environmental impact of our operations and are taking necessary steps to make our journey more sustainable.”
Making deliveries through EVs is expected to lower the running cost of vehicles by up to 40 per cent, leading to higher earnings for Swiggy’s delivery partners. The announcement comes on the back of almost two years of pilots, during which Swiggy explored various models to determine what would make EV adoption easier and more profitable for its delivery partners.
“The Indian industry must continue to work towards driving the adoption of EVs as a part of the nation’s overall efforts to transition to sustainable and environment-friendly mobility,” said Amitabh Kant, chief executive officer of Niti Aayog, the government think tank. “Swiggy’s commitment in this direction is a welcomed development. I urge other industry players to factor EVs in their business and operating models for a sustainable future.”
To ensure a robust and sustainable last-mile food delivery infrastructure, Reliance BP Mobility Limited (RBML) will install battery swapping stations every few kilometers. A single pre-charged battery enables a commute of almost 65-80 kilometers. Battery swapping itself will take less than five minutes, ensuring lesser waiting time and more deliveries and earnings for the delivery partners. Swiggy will also train the delivery partners on how to use the EVs, the swapping stations, and apps that monitor battery performance.
“Our collaboration with Swiggy has the potential to bring disruption and increase EV adoption among delivery and transportation companies in the country,” said RBML CEO Harish C. Mehta. “We are confident Swiggy and their Delivery partners will immensely benefit from our widespread network of Battery Swap stations.”
Swiggy is also working with Hero Lectro and Fast Despatch logistics to deploy electric cycles for last-mile deliveries. The pilot, live in Hyderabad, will expand to other metros in the coming months. Hero Lectro Cargo e-bikes are specifically designed for last-mile deliveries. It can travel at a maximum speed of 25 kmph with a range of 70-75 km per charge- making them ideal for short-distance deliveries. In addition to being pollution-free, the advantage of e-cycles is that they do not need immediate swapping or recharging when the battery runs out. They can be charged on regular plug points or continue running on pedal power.
Swiggy’s rival Zomato in June also said it will be converting its entire delivery fleet to electric by 2030, as it joins Climate Group’s global electric mobility initiative. E-commerce giant Amazon India has also partnered with Mahindra Electric to add more electric vehicles (EVs) to its delivery fleet in the country. In 2020, Amazon India had announced that its fleet of delivery vehicles would include 10,000 EVs by 2025.
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