11 Reasons Why Electric Vehicles are Beneficial for Logistics Needs in Business

By Kerry Smith
10 Aug, 2023

There are several compelling reasons why businesses should consider working with third-party logistics (3PL) providers that are investing in electric vehicles (EVs).

Here are six ways businesses benefit. And five more points on why consumers like to know the companies they’re buying from are doing their best to care for the environment.

Benefits for businesses

1. Environmental sustainability

Electric vehicles produce zero tailpipe emissions, reducing greenhouse gas emissions and air pollution. With growing concerns about climate change and stricter environmental regulations, investing in electric vehicles can help logistic companies demonstrate their commitment to sustainability and contribute to a greener future.

2. Cost Savings

While the initial cost of investing in electric vehicles may be higher than their conventional counterparts, EVs offer significant cost savings in the long run. They have lower operating costs due to lower fuel costs (typically cheaper than diesel or petrol) and reduced maintenance requirements. EVs have fewer moving parts, no oil changes, and lower maintenance requirements, resulting in reduced downtime and higher vehicle availability.

3. Energy efficiency

Electric vehicles are more energy-efficient compared to internal combustion engine (ICE) vehicles. EVs convert a higher percentage of energy from the electrical grid to power the wheels, while ICE vehicles waste a significant amount of energy as heat. This increased efficiency can result in reduced energy consumption and lower operating costs for logistic companies.

4. Government incentives

Many governments worldwide are offering incentives and subsidies to promote the adoption and investment in electric vehicles. These incentives can include tax credits, grants, and subsidies for purchasing EVs, setting up charging infrastructure, or converting existing fleets. By investing in electric vehicles, logistic companies can take advantage of these incentives, reducing upfront costs and accelerating the return on investment.

5. Improved public image and customer relations

Investing in electric vehicles demonstrates a logistic company’s commitment to sustainable practices and social responsibility. This can enhance their public image and brand reputation, attracting environmentally conscious customers and stakeholders. With increasing consumer awareness and demand for eco-friendly solutions, logistic companies that prioritise electric vehicle adoption can gain a competitive edge in the market.

6. Future-proofing the fleet

As governments and cities worldwide are actively transitioning to cleaner transportation options, there is a growing likelihood of stricter regulations on traditional combustion engine vehicles. By investing in electric vehicles now, logistic companies can future-proof their fleet, ensuring compliance with future emission standards and avoiding potential restrictions or penalties imposed on fossil fuel-powered vehicles.

Overall, investing in electric vehicles aligns with environmental goals, offers cost savings, leverages government incentives, improves public image, and prepares logistic companies for a sustainable future.

A blue truck is plugged into an electric charging point

A consumer’s perspective

There are several reasons for consumers wanting the logistic companies they use to invest in electric vehicles. Here are 5 reasons:

7. Environmental concerns

Consumers are becoming more aware of the environmental impact of their actions, including the transportation of goods. By investing in EVs, logistic companies contribute to a cleaner and healthier environment, addressing consumer concerns about climate change and sustainability.

8. Health and air quality

Electric vehicles help improve air quality by eliminating harmful exhaust emissions, such as particulate matter and nitrogen oxides. This has a direct positive impact on public health, reducing respiratory problems and related illnesses. Consumers value logistic companies that prioritise their well-being and the wellbeing of communities by reducing air pollution.

9. Noise reduction

Electric vehicles operate quietly compared to internal combustion engine vehicles, which can be particularly beneficial in urban areas. The reduced noise pollution from electric delivery trucks and vans contributes to a more peaceful and liveable environment. Consumers appreciate logistics companies that help create quieter neighbourhoods and reduce noise-related disturbances.

10. Sustainable practices

Many consumers are consciously choosing to support companies that demonstrate sustainable practices. By investing in electric vehicles, logistic companies showcase their commitment to reducing carbon footprints and embracing cleaner technologies. Consumers are more likely to choose logistics providers that align with their own values and prioritise sustainable solutions.

11. Influence on supply chain

Consumers recognise their role in driving change through their purchasing power. By demanding electric vehicle adoption from logistic companies, they exert influence throughout the supply chain. This consumer demand can create a ripple effect, encouraging logistic companies to invest in electric vehicles, leading to a broader transition towards sustainable transportation in the industry.