Skip to content
Search AI Powered

Latest Stories

Survey: nearly half of online shoppers would choose a package delivery firm with electric vehicles

Merchants Fleet says American consumers are increasingly aware of the carbon footprint of their e-commerce shopping habits.

merchants Screen Shot 2022-11-09 at 3.47.08 PM.png

Nearly half of American consumers say they would favor one e-commerce package carrier over another if it used electric vehicles (EVs) instead of gas-burning vans, according to a survey from New Hampshire-based fleet management company Merchants Fleet.

The statistic comes as 55% of U.S. shoppers are planning to buy more goods online this holiday season than last year, despite the challenges of rising inflation and a volatile stock market.


But even as they whip out their credit cards, consumers say they are increasingly aware of the environmental impact of package delivery. According to Merchants Fleet, more than 70% of consumers have considered that environmental impact of package delivery, and nearly 60% said environmental impact was at least somewhat factored into their decision to have packages shipped.

Academic studies have shown that online shopping can be a dirty habit, generating carbon emissions both from the giant vehicles that haul import containers around the globe and from the small vans that whisk orders to residential homes. One of the worst offenders in that process is next-day delivery and other express services, since transporters often carry those boxes in partly empty trucks in order to make tight deadlines, instead of waiting until the trucks are packed full to wring the most efficiency from every gallon of gas they burn.

In search of a solution, more than half (54%) said they would like to see delivery fleets transition from gas-powered vehicles to electric vehicles. And according to the survey, consumers are willing to put their money where their mouths are—48% would choose one package carrier over another if they knew that only one would deliver by electric vehicle, and 56% would consider buying more online if they knew their packages would be delivered by an EV.

Despite the promise of using low-emission EVs, the industry has a long way to go before they start replacing conventional cars and trucks.

"We predict that among the fleets we manage, more than 90,000 packages per day will be delivered in an EV during peak holiday season," John Cail, senior vice president of mobility at Merchants Fleet, said in a release. "While notable, it's still a drop in the bucket compared to the 5 million that will be delivered daily by internal combustion engine (ICE) vehicles. There's still a lot of work to be done to meet consumer demand for green shipping. While many fleets are just beginning their EV journey, this is a clear indication that it's time to start putting an EV adoption plan in place."

Merchants Fleet says it is the fourth largest provider of fleet management services nationally, with over 175,000 managed commercial fleet units across North America. The private equity-backed firm says it is moving toward electrification of commercial fleets, pointing to its existing reservations for 40,000 electric vehicles, representing an investment of $2.5 billion.


 

 

The Latest

More Stories

screenshot of map of shipping risks

Overhaul lands $55 million backing for risk management tools

The supply chain risk management firm Overhaul has landed $55 million in backing, saying the financing will fuel its advancements in artificial intelligence and support its strategic acquisition roadmap.

The equity funding round comes from the private equity firm Springcoast Partners, with follow-on participation from existing investors Edison Partners and Americo. As part of the investment, Springcoast’s Chris Dederick and Holger Staude will join Overhaul’s board of directors.

Keep ReadingShow less

Featured

Report: Five trends in AI and data science for 2025

Report: Five trends in AI and data science for 2025

Artificial intelligence (AI) and data science were hot business topics in 2024 and will remain on the front burner in 2025, according to recent research published in AI in Action, a series of technology-focused columns in the MIT Sloan Management Review.

In Five Trends in AI and Data Science for 2025, researchers Tom Davenport and Randy Bean outline ways in which AI and our data-driven culture will continue to shape the business landscape in the coming year. The information comes from a range of recent AI-focused research projects, including the 2025 AI & Data Leadership Executive Benchmark Survey, an annual survey of data, analytics, and AI executives conducted by Bean’s educational firm, Data & AI Leadership Exchange.

Keep ReadingShow less
aerial photo of port of miami

East and Gulf coast strike averted with 11th-hour agreement

Shippers today are praising an 11th-hour contract agreement that has averted the threat of a strike by dockworkers at East and Gulf coast ports that could have frozen container imports and exports as soon as January 16.

The agreement came late last night between the International Longshoremen’s Association (ILA) representing some 45,000 workers and the United States Maritime Alliance (USMX) that includes the operators of port facilities up and down the coast.

Keep ReadingShow less
Logistics industry growth slowed in December
Logistics Managers' Index

Logistics industry growth slowed in December

Logistics industry growth slowed in December due to a seasonal wind-down of inventory and following one of the busiest holiday shopping seasons on record, according to the latest Logistics Managers’ Index (LMI) report, released this week.

The monthly LMI was 57.3 in December, down more than a percentage point from November’s reading of 58.4. Despite the slowdown, economic activity across the industry continued to expand, as an LMI reading above 50 indicates growth and a reading below 50 indicates contraction.

Keep ReadingShow less
forklifts in warehouse

Demand for warehouse space cooled off slightly in fourth quarter

The overall national industrial real estate vacancy rate edged higher in the fourth quarter, although it still remains well below pre-pandemic levels, according to an analysis by Cushman & Wakefield.

Vacancy rates shrunk during the pandemic to historically low levels as e-commerce sales—and demand for warehouse space—boomed in response to massive numbers of people working and living from home. That frantic pace is now cooling off but real estate demand remains elevated from a long-term perspective.

Keep ReadingShow less