In a statement General Motors Co said, its electric commercial vehicle business, BrightDrop, has signed a deal to supply EVs with Walmart Inc and has expanded its supply agreement with FedEx Corp.
It did not announce the financial terms of the deals.
Both deals assume significance since it will lead to reduce CO2 emission. Government around the world have pledged to slash carbon emissions and companies including Amazon.com Inc, FedEx, and United Parcel have pledged to shift their large delivery fleets to EVs.
With automakers racing to win deals to electrify such fleets, the winners and losers in the EV will be determined by those automakers who manage to corner deals to electrify fleets of package delivery systems.
Amazon has said, it will collaborate with Stellantis to develop cars and trucks which will feature Amazon software in the dashboards, and deploy electric vans made by Stellantis in Amazon’s delivery network.
According to GM’s estimate, the size of the EV van business in the United States will climb to more than $850 billion by 2025.
As part of the deal with GM, Walmart will reserve 5,000 of BrightDrop’s EV600 and smaller EV410 delivery vans as part of its goal to operate a zero-emission logistics fleet by 2040, said both companies.
Walmart plans to use the GM vans as part of its InHome delivery service, which it said on Wednesday it was rapidly expanding.
The first BrightDrop vans will be delivered in early 2023.
FedEx, which has already begun taking delivery of 500 EVs from GM from 2021, has reserved another 2,000 over the next few years; it is also negotiating to take an additional 20,000 after that.
FedEx is targeting a carbon-neutral footprint for its global operations by 2040.
During a conference call, FedEx Express Regional President of the Americas Richard Smith said, the company expects to add more than 200,000 electric medium-sized delivery vehicles by 2040.
By 2030, Fedex expects to electrify all of its new delivery vehicles.
“BrightDrop’s real, they’re here now, their trucks are on the road for us in California delivering packages,” said Smith. “That’s another reason we’re leaning in to them.”