Europe and U.S. delivery companies are racing to meet the growing demand for zero-emission, electric last-mile deliveries in cities, aiming to beat industry giants to the market. Startups like Liefergrun, Zedify, Packfleet, and DutchX have collectively raised around $1 billion in funding. While industry leaders like FedEx, Deutsche Post DHL Group, Amazon, and United Parcel Service have set targets for zero-emission fleets, these startups hope to gain market share during the lead-up. They face the challenge of scaling up while keeping prices competitive, but their success could make them attractive acquisition targets.
Europe and U.S. delivery companies push EV last-mile deliveries
A clutch of European and U.S. delivery company startups is racing to serve the growing market for offering zero-emission, electric last-mile deliveries in cities to retailers and consumers before giant shippers do the same. These startups, including Liefergrun, Zedify, Packfleet, and DutchX, have collectively raised around $1 billion in funding. While industry leaders such as FedEx, Deutsche Post DHL Group, Amazon, and United Parcel Service have set targets for zero-emission fleets, the startups aim to gain market share during the lead-up. However, they face the challenge of scaling up while keeping prices low in a competitive market.
Startups compete with industry leaders’ emission reduction targets
Delivery startups like Liefergrun, Zedify, Packfleet, and DutchX are tapping into retailers’ need to meet environmental, social, and corporate governance (ESG) targets by offering zero-emission delivery services. While industry leaders like FedEx, Deutsche Post DHL Group, Amazon, and United Parcel Service have set their own targets for zero-emission fleets, the startups aim to grab market share during the lead-up. This presents a challenge for the startups to scale up rapidly while also keeping prices competitive in a crowded market.
Liefergrun: Scaling up sustainable delivery
Berlin-based startup Liefergrun, which delivers in major cities across Germany and Austria, is building package hubs in city centers and contracting out deliveries to third parties. The company provides access to electric van deals from Mercedes-Benz and China’s Maxus. Liefergrun has seen significant growth and expects its revenue to grow sevenfold this year. It has raised 15 million euros so far and plans to raise more funding next year to expand quickly. The startup aims to meet the demand for sustainable delivery while keeping costs affordable for customers.
