As with any business – cash is king – and cash-flow, or the amount of money transferring in and out of your business at any one time, is one of the most important metrics for businesses looking to grow.  As a courier service our business is no different, and cost control is top priority to keep out businesses healthy and out of the red.

Right behind operational expenses including rental, insurance, and labor costs, fuel represent one of the biggest out-flows of cash, and one that until recently, was seen as a standard variable cost, and one directly related to the amount of miles driven.

This equation is now changing thanks electric vehicles (EVs).

The good news is: with EV manufacturers moving quickly into last-mile trucking, short-distance courier-based business like yours are uniquely positioned to benefit from this technology.

The question now is should you go on the electric car bandwagon and convert? Will that do good for your local courier business?

Today, let’s help you figure that out.

Electric Cars As Couriers: Is It Possible?

Although it may seem like technologyElectric cars aren’t brand new. In fact, They have been around and now we’ve seen many own them. However, one of the challenges of owning and operating an electric car is how to power it up. You see, unlike gas stations that seem to exist in every corner, there aren’t as many charging stations. However, there is a growing number of charging stations, especially in urbanized areas.

Courier services could possibly lead to the use of such vehicles. This is because they have a network of vehicles designated for different locations. They have the data to calculate how much their vehicles need to cover for the deliveries. In that way, it is less risky for them to have the electric car stalled on the road due to lack of electricity.

Furthermore, courier services may also have the capacity to invest in their own charging points or at least have some in their facilities. They could also create routes that pass through the various charging points within the locality.

Should Courier Services Convert To Electric Vehicles?

Of course it is possible for courier services to use electric vehicles to provide their service, the question of whether they should or should not still remain. There are factors to consider but the partnership between electric cars and courier services is looking quite well. Here are a few reasons why you should think of converting into electric vehicles.

Maintenance Costs

While the jury is still out on the overall maintenance costs savings with an EV fleet for last-mile transportation and courier services, initially these costs should be lower.  Since there’s no engine or transmission to service, you won’t need to change your truck’s transmission or engine oil, and you’ll never have to replace a timing belt or a head gasket either.  Moreover, not including the engine or transmission, EVs are also known to have fewer moving parts than their combustion engine counterparts in general, further reducing the cost of maintenance and repair due to less wear and tear.

With less moving parts, unexpected failures should be reduced, however we don’t recommend ripping up the number for your preferred roadside assistance or towing service, as the most common roadside needs are related to unexpected accidents or flat tire service.

Unfortunately, EVs aren’t perfect, and one of the biggest drawbacks relates to batteries.  Over the long term the batteries in EVs will need to be replaced with costs ranging from $4,000 – $7,000, or more depending on the size and model.  Most manufactures have warranties that cover battery replacement should a premature failure occur, but you may have to cover the cost yourself if the battery fails after the warranty expires.  This additional cost may lessen the resale value of your vehicles, especially for older models.

Environmental Reasons

The first and most common reason to convert from combustion engines to electrical-powered ones is due to the impact on the environment. They are a far better option when you want to reduce your carbon footprint. Even Amazon is turning into electric vehicles to lower down their carbon footprint.

Additionally the U.S. Government is now allowing businesses to claim “carbon credits” if a business can prove that they are actively reducing their carbon footprint.  Qualifying business can then claim their credits offset tax obligation or sell them on a global market.  Click here to find out more…

Government Funding

The government is pushing the use of electric vehicles in order to lessen the carbon footprint. You should take advantage of this and check what the local government has to offer. There are incentives and they can also help you so that the cost of converting wouldn’t seem to be too high.

Boost Your Brand

How many local courier services do you know that use electric vehicles? There aren’t many yet so why not use it to boost your brand. Electric vehicles aren’t just unique, they could also positively impact your brand by letting the public know about your concerns about the environment. By using such vehicles, you are helping in lessening the carbon footprint. It is one way to make your business greener. Many people are also concerned with the environmental effects of cars. By using electric cars, you might convince more people to hire you for your services.