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Walmart Inc. will be upgrading its delivery vans and shifting to electric vehicles as part of its goal of achieving net-zero emissions by the year 2040. For this, the retail company has signed a contract with Canoo Inc. for the purchase deal of about 4,500 vehicle units.
According to Reuters, the financial terms of Walmart and Canoo were not divulged to the public. The former already revealed its plans to expand its transportation fleet and will use electric, natural gas-powered, and hydrogen-powered vehicles in June.
At that time, the company also mentioned it will partner with makers of such types of vehicles such as the Daimler Truck's Freightliner and Cummins Inc. Earlier this year, Walmart also made reservations for 5,000 electric delivery vans with General Motors' BrightDrop which makes EVs for commercial use.
Walmart is just one of the major companies that are pushing to have their own fleet of electric vehicles for deliveries and other commercial use. One reason for this is that most governments around the world are demanding firms to cut their CO2 emissions.
In fact, as a response to the calls, Amazon, FedEx, and United Parcel Service Inc. have made big changes in their delivery fleets by securing orders for electric delivery vans. Some of these firms have already deployed the EVs on the field. And now, Walmart is making an announcement about including the Canoo electric delivery vehicles in its business operation.
"We are proud to have been selected by Walmart, one of the most sophisticated buyers in the world, to provide our high-tech, all-electric, American-made Lifestyle Delivery Vehicle to add to their impressive logistics capabilities,” Canoo’s chairman, investor and chief executive officer, Tony Aquila, said in a press release. “Our LDV has the turning radius of a small passenger vehicle on a parking friendly, compact footprint, yet the payload and cargo space of a commercial delivery vehicle.”
He went on to say, “This is the winning algorithm to seriously compete in the last mile delivery race, globally, and Walmart's massive store footprint provides a strategic advantage in today's growing 'Need it now' mindset and an unmatched opportunity for growing EV demand, especially at today's gas prices."
