UPS Invests In Arrival, Orders 10,000 Electric Delivery Vehicles

Arrival and UPS have been working together since 2016 and that relationship is bearing fruit as the delivery giant has announced it is ordering 10,000 electric vehicles from the British startup.

The order is worth more than $440 (£338 / €400) million and will help UPS to transition to a zero emissions fleet.

Little is known about the vans at this point, but Arrival said they’re Generation 2 vehicles which ride on a skateboard platform. The models will be built to UPS’ specifications and the company noted the architecture allows them to create bespoke vehicles of any type, size or shape to meet customer requirements. These vehicles can also be built at microfactories which can be “rapidly deployed close to areas of demand across the globe.”

Also Read: UPS Unveils New Electric Delivery Trucks With 150+ Mile Range

While a lot of questions remain, the 10,000 delivery vans will be rolled out in Europe, the United States and the United Kingdom by the end of 2024. That’s just an initial order too as UPS has the option to buy additional vehicles in the future.

Besides the sizable order, UPS’ venture capital arm also made an investment into Arrival. The companies didn’t disclose the amount, but the news comes shortly after Hyundai and Kia invested $110 (£85 / €100) million into Arrival.

In a statement, Arrival founder and CEO Denis Sverdlov said “UPS has been a strong strategic partner of Arrival, providing valuable insight to how electric delivery vans are used on the road and how they can be optimized for drivers. Together our teams have been creating bespoke electric vehicles, based on our flexible skateboard platforms, that meet the end-to-end needs of UPS from driving, loading/unloading, depot and back office operations.” Sverdlov went on to say he’s pleased with today’s investment and noted the order will forge even stronger ties between the two companies.

His sentiments were echoed by Carlton Rose, UPS’ president of global fleet maintenance and engineering, who said “Our investment and partnership with Arrival is directly aligned with UPS’s transformation strategy, led by the deployment of cutting-edge technologies. These vehicles will be among the world’s most advanced package delivery vehicles, redefining industry standards for electric, connected and intelligent vehicle solutions.”