UPS orders 10,000 Arrival electric delivery vans for Europe and North America (2020-2024).

UPS, through its UPS Ventures arm, follows Hyundai and Kia's equity investment in the UK-based commercial EV developer Arrival. The company invested an undisclosed amount to become a minority shareholder and get early access to Arrival’s vehicles.

The second part of the deal is an order for 10,000 Arrival's Generation 2 bespoke electric vehicles that are expected to be delivered in 2020-2024 in Europe (starting in the UK) and North America.

The initial order, worth "hundreds of millions of euros each year", is so far the biggest one placed by the UPS (for EVs). The company has an option for a further order of 10,000 vehicles during this period.

The key to the Arrival’s Generation 2 EVs is that they are purpose-built electric delivery vehicles that exactly match UPS’ specifications. The two companies were developing the vehicle since 2016.

"Arrival’s Generation 2 Electric Vehicles are a new category of electric vehicles that surpass traditional vehicles in cost, design and efficiency with 50% operational cost savings for fleet owners"

The other thing that attracts investors/customers is a new method of assembly using: "low capital, low footprint microfactories located to serve local communities and profitable from thousands of units".

"Arrival takes a ground-up approach to the design and production of its electric vehicles, enabling an efficient path toward mass adoption. The company produces its own major core vehicle components – chassis, powertrain, body and electronic controls. Importantly, Arrival vehicles also use a modular design with standardized parts, a method that reduces maintenance and other costs of ownership."

"UPS will collaborate with Arrival to develop a wide range of electric vehicles with Advanced Driver-Assistance Systems (ADAS). The technology is designed to increase safety and operating efficiencies, including the potential for automated movements in UPS depots. UPS will initiate testing ADAS features later in 2020. Future vehicle purchases are contingent on successful tests of initial vehicles. Vehicle purchase prices will not be disclosed."

Gallery: Arrival’s Generation 2 Electric Vehicles in UPS fleet

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UPS Invests In Arrival, Accelerates Fleet Electrification With Order Of 10,000 Electric Delivery Vehicles

US 01/29/20

Atlanta, GA

  • UPS commits to purchasing 10,000 of Arrival’s vehicles - purpose built for UPS
  • Both companies are co-developing electric delivery vehicles for UPS
  • Advanced vehicle controls create new functionality
  • Equity investment gives UPS early access to Arrival’s vehicles
  • Arrival is the first commercial vehicle manufacturer to provide purpose-built electric delivery vehicles to UPS’s specifications and with a production strategy for global scale

UPS (NYSE:UPS) today said its venture capital arm, UPS Ventures, has completed a minority investment in Arrival, which makes electric vehicle (EV) platforms and purpose-built vehicles that offer a highly competitive value proposition when compared with both traditional internal combustion engine vehicles, as well as existing EVs. Along with the investment in Arrival, UPS also announced a commitment to purchase 10,000 electric vehicles to be built for UPS with priority access to purchase additional electric vehicles.

UPS will collaborate with Arrival to develop a wide range of electric vehicles with Advanced Driver-Assistance Systems (ADAS). The technology is designed to increase safety and operating efficiencies, including the potential for automated movements in UPS depots. UPS will initiate testing ADAS features later in 2020. Future vehicle purchases are contingent on successful tests of initial vehicles. Vehicle purchase prices will not be disclosed.

“UPS continues to build an integrated fleet of electric vehicles, combined with innovative, large-scale fleet charging technology,” said Juan Perez, UPS chief information and engineering officer. “As mega-trends like population growth, urban migration, and e-commerce continue to accelerate, we recognize the need to work with partners around the world to solve both road congestion and pollution challenges for our customers and the communities we serve. Electric vehicles form a cornerstone to our sustainable urban delivery strategies. Taking an active investment role in Arrival enables UPS to collaborate on the design and production of the world’s most advanced electric delivery vehicles.”

 Arrival takes a ground-up approach to the design and production of its electric vehicles, enabling an efficient path toward mass adoption. The company produces its own major core vehicle components – chassis, powertrain, body and electronic controls. Importantly, Arrival vehicles also use a modular design with standardized parts, a method that reduces maintenance and other costs of ownership.

“UPS has been a strong strategic partner of Arrival’s, providing valuable insight into how electric delivery vans are used on the road and, importantly, how they can be completely optimized for drivers,” said Denis Sverdlov, Arrival chief executive. “Together, our teams have been working hard to create bespoke electric vehicles, based on our flexible skateboard platforms that meet the end-to-end needs of UPS from driving, loading/unloading and back-office operations. We are pleased that today’s investment and vehicle order creates even closer ties between our two companies.”  

Arrival will build the vehicles in micro-factories, using lightweight, durable materials the company designs and creates in-house. As an investor, UPS has the option to fast-track orders as necessary. UPS expects to deploy the EVs in Europe and North America.

“Our investment and partnership with Arrival is directly aligned with UPS’s transformation strategy, led by the deployment of cutting-edge technologies,” said Carlton Rose, president of UPS Global Fleet Maintenance & Engineering “These vehicles are the world’s most advanced package delivery vehicles, redefining industry standards for electric, connected and intelligent vehicle solutions.”

Arrival is the first commercial vehicle manufacturer to provide purpose-built electric delivery vehicles to UPS’s specifications and with a production strategy for global scale. Since 2016, UPS and Arrival have collaborated to develop concepts of different vehicles sizes. The companies previously announced they would develop a state-of-the-art pilot fleet of 35 electric delivery vehicles to be trialed in London and Paris. Additionally, UPS announced a pioneering new approach to electric charging and storage that has now been deployed in UPS’s central London facility.

UPS Ventures, the company’s venture capital arm, invests in extraordinary companies that are breaking through traditional ways of doing business. Investment decisions are focused on companies that create opportunities and technologies that are closely aligned with UPS growth areas and corporate values.

 

 

 

 

UPS invests in Arrival and orders 10,000 Generation 2 Electric Vehicles

  • UPS orders hundreds of millions of euros worth of bespoke purpose built electric vehicles from Arrival, accelerating UPS’ transition to a zero emissions fleet. Today’s initial order of 10,000 vehicles will be rolled out over 2020-2024 with the option for a further order of 10,000
  • Arrival's technologies create purpose-built electric delivery vehicles that exactly match UPS’s specifications. UPS and Arrival have co-developed the vehicles which include the latest advanced control and safety features
  • Arrival’s Generation 2 Electric Vehicles are a new category of electric vehicles that surpass traditional vehicles in cost, design and efficiency with 50% operational cost savings for fleet owners
  • Arrival has invented a new method of assembly using low capital, low footprint microfactories located to serve local communities and profitable from thousands of units
 
29 January 2020, London, UK and Atlanta, USA. UPS have announced an order of 10,000 purpose built electric vehicles worth hundreds of millions of euros from UK based company Arrival. The initial 10,000 vehicles will be rolled out in the UK, Europe and North America from 2020 to 2024 with the option to purchase a further order of 10,000 vehicles. UPS venture capital arm also announced an investment in Arrival of an undisclosed amount.
 
The vehicles will be built using Arrival’s new method of assembly using low capital, low footprint microfactories located to serve local communities and profitable from thousands of units.
 
Arrival first announced a partnership with UPS to develop electric vehicles in 2016 with today’s vehicle order and investment accelerating the deployment of fit for purpose electric fleets at scale. Arrival’s unique Generation 2.0 electric vehicles offer UPS compelling commercial and environmental benefits to make a seamless and cost effective transition to a zero emissions fleet.
 
Denis Sverdlov, Founder and CEO of Arrival said,
 
 “UPS has been a strong strategic partner of Arrival, providing valuable insight to how electric delivery vans are used on the road and how they can be optimised for drivers. Together our teams have been creating bespoke electric vehicles, based on our flexible skateboard platforms, that meet the end-to-end needs of UPS from driving, loading/unloading, depot and back office operations. We are pleased that today’s investment and vehicle order creates even closer ties between our two companies.”
 
Carlton Rose, President of UPS Global Fleet Maintenance & Engineering said,
 
“Our investment and partnership with Arrival is directly aligned with UPS’s transformation strategy, led by the deployment of cutting-edge technologies.These vehicles will be among the world’s most advanced package delivery vehicles, redefining industry standards for electric, connected and intelligent vehicle solutions.”
 
Arrival has developed components, sustainable materials and software to customise both vehicles and operations of commercial fleet owners. The company’s unique skateboard platforms enable the creation of vehicles in any weight, type, size and shape to match customer requirements, which are then deployed close to areas of demand across the globe in Arrival’s microfactories.
 
Avinash Rugoobur, Chief Strategy Officer at Arrival said,
 
“Arrival has created Generation 2 electric vehicles that are better in price, design and experience than traditional fossil fuel vehicles and existing EVs. This gives fleet managers a highly compelling commercial and environmental reason to switch to electric and will accelerate the adoption of electric technology globally. At Arrival, we believe this is amongst the most impactful areas to start the transition to a fully electric future, and our partnership with UPS will drive us both towards our shared vision of cleaner mobility.”
 
Juan Perez, Chief Information and Engineering Officer, UPS said
 
“UPS continues to build an integrated fleet of electric vehicles, combined with innovative, large-scale fleet charging technology. As mega-trends like population growth, urban migration, and e-commerce continue to accelerate, we recognize the need to work with partners around the world to solve both road congestion and pollution challenges for our customers and the communities we serve. Electric vehicles form a cornerstone to our sustainable urban delivery strategies. Taking an active investment role in Arrival enables UPS to collaborate in the design and production of the world’s most advanced electric delivery vehicles.”
 
With over 300 million vans and trucks on the road fuelled by petrol or diesel, the commercial vehicle segment is a major contributor to transport emissions as well as the fastest growing vehicle segment. The rise of e-commerce has contributed to this increase; over the past decade the number of parcels delivered per day in NYC alone has quadrupled to 1.5 million whilst van mileage in the UK has grown 56% since 2000. The opportunity to significantly impact climate change, coupled with predictable routes and overnight depot charging, make commercial vehicles perfectly suited to seamlessly switch to electric.