Drive for efficiency could prompt food delivery companies to consider electric vehicles

Electric vehicles could be a cheaper option in the long-term for firms

Adam Ridgway, CEO of electric vehicle company One Moto. Reem Mohammed/The National

The Covid-19 pandemic could result in an increase in electric vehicles (EVs) on roads as delivery firms look to cut costs, according to experts.

EVs have long been seen as better for the environment than their petrol counterparts, but many companies have been put off investing because they were seen as a more expensive option.

However, firms are now starting to look at the longer-term costs of refuelling and servicing which could see EVs taking a substantial foothold in the UAE delivery market.

The founder of an EV company in Dubai said there could be a substantial change to the make-up of the UAE’s fleet of delivery bikes within the next 18 months.

“By the end of 2021 EVs will have a 10 per cent share of the delivery market here,” said Adam Ridgway, chief executive of One Moto.

“I’ve had several conversations with delivery companies over the last 60-90 days who are interested in EVs because they want to cut costs.”

"By the end of 2021 EVs will have a 10 per cent share of the delivery market here"

Mr Ridgway said his company had already reached an agreement with one of the leading delivery companies in the emirate to supply them with 130 bikes.

Last year Dubai’s Roads and Transport authority (RTA) announced that 90 per cent of private taxis must be hybrid or electric by 2026, while the country’s first electric bus also took to the roads of Abu Dhabi in 2019.

“While many companies don’t have a mandate for sustainability, 100 per cent have a mandate to save money,” he said.

‘The average cost of charging a battery is Dh7 while it’s an average of Dh30 to refuel a petrol bike.”

The average cost of buying a petrol delivery bike is Dh9,000, while electric alternatives are more than Dh14,000.

However, Mr Ridgway said it costs more than Dh450 to refuel a petrol bike each month, before maintenance costs are taken into consideration.

The majority of the bikes being used by Dubai’s delivery fleet are leased though, with Mr Ridgway estimating the monthly cost at Dh600.

Even at that, he said firms would still be saving money as the average petrol bike being used by the delivery company only lasts for two years, compared to their electric counterparts which are said to last for five.

Workers secure chassis fittings on a Volkswagen electric automobile at a factory in Zwickau, Germany. Global electric car sales were predicted to take up a record share of the car market of more than 3 per cent in 2020. Bloomberg

He also said the cost of fuel and maintenance would mean each petrol bike costs companies closer to Dh1,000 a month to lease.

The environmental advantages of switching from petrol to electric vehicles have been well documented.

A move towards the use of electric bikes could also provide a significant boost to local sustainability.

Mr Ridgway said motorbikes can emit more than 3,000 per cent more nitrogen oxides, 416 per cent more hydro carbons and carbon monoxide levels that are more than 8,000 per cent than cars.

A senior figure from one of the country’s leading food delivery companies said he was fully committed to adopting sustainable transport in the UAE.

“Sustainable fleets are the way of the future,” said Talabat chief operating officer Toon Gyssels.

“We take corporate responsibility with the utmost care and respect, and are currently exploring new avenues of moving towards a more sustainable fleet.

“We firmly believe that electric powered fleets will undoubtedly be the way of the future.”

One of the UAE’s leading environmental experts said it would be affordability, not sustainability, that would drive the electric vehicle revolution.

“The pandemic has shown companies they need to be more efficient with less resources,” said Ivano Iannelli, chief executive of Dubai Carbon, which was set up to promote a green environment.

“Electric vehicles are far more efficient than those with combustible engines.

“The batteries are easier to charge as well so there is less time spent off the road refuelling.”

The outlook is expected to brighten up for electric vehicle makers as costs to manufacture electric vehicles reduce. Bloomberg

Mr Iannelli said the pandemic had made companies more alert to the need to be more astute when it came to managing expenditure.

“Electric vehicles use one third of the power to create the same energy as other vehicles using combustible engines,” he said.

“Companies need to save money more than ever and realise it is cheaper to take the shortest route.”

One obstacle to the adoption of electric vehicles has been the fear they could only travel short distances without needing to recharge.

“This is called range anxiety, which means people are worried there is a finite amount they can travel on a trip,” he said.

“But it’s so easy to change batteries now that it is less of an issue than it was before.”

He also predicted a revolution was coming on the roads and people would learn to embrace electric vehicles.

“It’s something new and they will get used to it, it’s like learning to use an iPhone,” he said.

“I’m expecting to see it become mainstream.”