You are about to leave Risk Strategies website and view the content of an external website.
You are leaving risk-strategies.com
By accessing this link, you will be leaving Risk Strategies website and entering a website hosted by another party. Please be advised that you will no longer be subject to, or under the protection of, the privacy and security policies of Risk Strategies website. We encourage you to read and evaluate the privacy and security policies of the site you are entering, which may be different than those of Risk Strategies.
The rise of electric vehicles (EVs) is reshaping the transportation industry, presenting opportunities and challenges for last mile delivery businesses. Recent incidents, like the New York e-bike shop fire, raise concerns about lithium-ion battery safety. The push for EV adoption underscores the industry's need to address these concerns and prepare for an electric future.
Major companies are investing heavily in EV options for last mile delivery. Even the United States Postal Service (USPS) is making the shift.
Regulatory changes are on the horizon. California, for example, struck deals with manufacturers to phase out larger trucks, transitioning vehicles away from fossil fuels. The current administration announced the EV Acceleration Challenge to meet the President’s goal of having 50% of all new vehicle sales be electric by 2030. This will have a significant impact on last mile delivery, putting more EVs on the road. This calls for a deeper understanding of the possible risks.
EVs present numerous benefits, including reduced greenhouse gas emissions and lower operating costs. However, they come with several challenges, such as:
When you begin an EV investment, assess risks, implement mitigation strategies, and be adaptable. This way, you can maximize the benefits of EVs while effectively managing their associated risks.
Adapt your practices as the EV market evolves. There are several ways to prepare:
To better understand the future of EVs in last mile delivery, we can look to our international counterparts. European countries have been forward-thinking in adopting EVs. Their systems can serve as inspiration for the United States:
Last mile delivery electrification is a promising evolution that assures economic and environmental benefits. However, it also brings risks that demand attention. As you consider an EV transition, address potential hazards, maintenance challenges, and regulatory changes. This ensures the safety and viability of EVs. Adapting will allow you to thrive in this electric future.
Want to learn more?
Find me on LinkedIn, here.
Connect with the Risk Strategies Transportation team at transportation@risk‐strategies.com.
About the author
Bryan Paulozzi specializes in insurance and risk management for courier, last mile delivery, expediting, freight forwarding, and brokering businesses. He and his team help transportation companies identify and mitigate safety risks for EV fleets, with an eye toward reducing insurance costs.