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UPS Orders 10,000 Electric Vans From British manufacturer Arrival

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Delivery giant UPS has committed to buying 10,000 electric delivery vans from British company Arrival. They will be purpose built for UPS in various micro factories. The deal is thought to be worth around £339 million but this could increase with further orders.

The new follows hot on the heels of last week’s announcement that South Korean car giants Hyundai and Kia had made a €100m investment in the British company giving it a value of £3 billion.

As part of the deal UPS has also made a small investment in Arrival that will allow them to fast track order as needed. The two companies will now work together to develop further technologies including driver assistance to improve both safety and efficiency.

Arrival’s vehicles are modular in design using a whole range of standardised parts – they produce their own chassis, powertrain, body and electronic controls – that help bring down maintenance costs for customers.

The vehicles will be manufactured at micro factories close to where the will be deployed in order to reduce the carbon footprint as much as possible. These factories can be up and running in several months wherever needed. It is expected UPS will deploy them both in Europe and North America.

As companies look to reduce their carbon footprint deploying more technologically advanced electric vehicles will be key and this is a step in the right direction by one of the world’s biggest.

Arrival’s chief executive Denis Sverdlov had this to say about the deal: “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. 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.”

Founded in 2015 and based in London, Arrival employs more than 800 people globally with offices in several countries. In recent years Arrival has bucked the trend that has seen limited investment amid Brexit uncertainty.

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