Amazon.com to invest over 1 billion euros in European electric van, truck fleet

LONDON, October 10 (Reuters) – Amazon.com Inc (AMZN.O) said on Monday it would invest more than one billion euros ($974.8 million) over the next five years in low-emission electric vans, trucks and hubs across Europe, accelerating its desire to achieve net zero carbon.

The retailer said the investment also aims to spur innovation in the transportation industry and encourage more public charging infrastructure for electric vehicles (EVs).

The US online retailer said the investment will help its fleet of electric vans in Europe more than triple from 3,000 vehicles to more than 10,000 by 2025.

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The company didn’t say what percentage of its European last-mile delivery fleet is electric today, but said those 3,000 zero-emission vans delivered more than 100 million packages in 2021.

Amazon said it also hopes to buy more than 1,500 electric heavy-duty trucks – used for “intermediate” shipments to packing centers – in the coming years.

Although a number of large logistics companies – including package delivery companies United Parcel Service Inc. (UPS.N) and FedEx Corp. (FDX.N) – have pledged to buy a large number of zero-emission electric vans and trucks, there are still not many available for purchase.

The Amazon logo is seen outside its JFK8 fulfillment center in Staten Island, New York, U.S., November 25, 2020. REUTERS/Brendan McDermid

A number of startups are rushing to bring electric vans or trucks to market and are facing increasing competition from traditional manufacturers such as General Motors Co. (GM.N) and Ford Motor Co. (FN).

Amazon’s largest electric van order is for 100,000 vehicles from Rivian Automotive Inc (RIVN.O) until 2025.

The company said that alongside electric vehicles, it would invest in thousands of chargers in installations across Europe.

The retailer said it would also invest in doubling its European network of “micro-mobility” hubs from more than 20 cities today.

Amazon has used these centrally located hubs to run new delivery methods, including electric cargo bikes or walking deliveries to reduce emissions.

The company plans to achieve net zero carbon by 2040.

($1 = 1.0259 euros)

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Reporting by Nick Carey in London Editing by Matthew Lewis

Our standards: The Thomson Reuters Trust Principles.

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