Hot on the heels of its deal with Hyundai, electric LCV start-up Arrival has won another major contract, this time for 10,000 vans for UPS.
The British start-up will deliver 10,000 bespoke electric vans between 2020 and 2024 for use by the parcel delivery company in Europe and the US. UPS has the option to purchase a further 10,000 vehicles during this period.
UPS’s venture capital arm also announced an investment in Arrival of an undisclosed amount.
Arrival started developing electric vehicles in partnership with UPS in 2016. This order is the next step in that partnership.
The vehicles will be built in microfactories to serve local communities. Arrival says these factories are profitable from just thousands of units.
Arrival's vans use its own scalable ‘skateboard’ platform and its in-house software, materials, components and other technologies.
Denis Sverdlov, founder and CEO of Arrival, 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 optimised 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. We are pleased that today’s investment and vehicle order create even closer ties between our two companies.”
Carlton Rose, president of UPS global fleet maintenance & engineering, commented: “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.”