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UPS ordered 20 thousand electric vehicles from the company of the ex-Deputy Minister of Telecom and Mass Communications of the Russian Federation

Customers: UPS Flight Forward

Logistics and distribution



Project date: 2020/01

At the end of January, 2020 the British producer of the electric Arrival vans of the ex-Deputy Minister of Telecom and Mass Communications of the Russian Federation Denis Sverdlov received from the American logistic company UPS the purchase order to 20 thousand thousands of machines.

The cost of the contract is not specified, but the Financial Times newspaper writes that the speech can go about several hundred millions of dollars. The The Guardian edition estimates contract amount at €400 million, but it can reach €600 million depending on a complete set of cars.

UPS the purchase order up to 20 thousand thousands of machines

The average cost of the Arrival electrotruck will be €40 thousand for UPS. It is more than the nominal value of new Ford Transit with the internal combustion engine (€33 thousand). But taking into account smaller expenses on fuel and maintenance, the actual cost of the electrovan can be lower.

Under the terms of the agreement, UPS during the period from 2020 to 2024 will purchase 10 thousand Arrival electric cars for work in the markets of Britain, Europe and North America. Also the agreement assumes a possibility of optional purchase of 10 thousand more vehicles in 2023 — delivery of this batch will depend on results of use of earlier purchased cars.

Besides, the division of UPS Ventures which is engaged in venture investments invested in Arrival. Financial and other conditions of this transaction do not reveal.

Arrival began to cooperate with UPS as with the strategic investor when developing electric vehicles in 2016. According to Denis Sverdlov, UPS provides to Arrival important information as electric vehicles are used in logistics and as they can be optimized for drivers. After signing of the contract UPS will continue to project together with Arrival several models of electric vehicles with the advanced systems of the help to the driver (ADAS).[1]

Electric vehicles



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