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Amazon Budgets €1 Billion for Zero Emission Vehicles

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By Augustine Mbam - - 5 Mins Read

Amazon Inc has decided to accelerate its goal of net zero emissions by investing €1 billion in electric vehicles. 

Speculations are that the e-commerce giants will exclude Tesla from the list of EV manufacturers. 

The retailers claimed that they plan on joining and encouraging the use of electric vehicles to combat climate change. Their goal is to achieve net zero emissions by 2040. 

The major move by Amazon was also aimed at spurring innovation within the transport industry through the use of electric vehicles (EVs). 

By 2025, Amazon hopes to increase the number of electric vehicles they have from 3,000 vehicles to 10,000 vehicles. 

Currently, many Amazon delivery fleets are not electric, and the company has not stated the percentage of electric vehicles. 

Amazon will add about 1,500 heavy-duty electric vehicles used for "middle mile" shipments as part of its plans. For this particular heavy-duty vehicle, the company has not revealed the date on which it will start its purchase.

EV Companies Racing to Produce More Vehicles 

Because of the latest development, many electric vehicle manufacturing companies have already started working on bringing more electric vehicles to the market. 

Amazon has already struck an agreement with an electric car company called Rivian Automotive Inc. As part of the deal, the EV car company is set to deliver about 100,000 vans to Amazon from now to 2025.

The company also says it will help build charging facilities throughout Europe to help with charging issues. The amount of charging facilities Amazon is set to build will run into thousands. 

Apart from the charging facilities, the e-commerce giant will also invest in a network of "micro-mobility" hubs around Europe.

With these micro-mobility hubs, Amazon hopes that they would be able to bring in new delivery methods that will reduce the number of emissions. 

From what Amazon is planning, it looks like Tesla is out of its plans. However, Tesla is set to be busy after they struck a deal with Pepsi. 

The leading electric vehicle manufacturer is set to start the production of semi trucks for the soda company from December 1st. 

Elon Musk, the CEO of Tesla, said on Twitter, "Excited to announce the start of production of the Tesla Semi Truck with deliveries to @Pepsi on Dec 1st!"

Other Logistics Firms are Embracing EV 

Amazon is not the only company trying to adopt electric vehicles as their primary land vehicle. 

Major logistics firms such as FedEx Corp and United Service Inc are trying to secure as many electric vehicles as possible. Many big companies have said that the lack of many EV vehicles in the market is holding them back. 

In response, EV manufacturers' startups are in the race to pole positions, assuming a big company needs their services.