DHL cancels StreetScooter pilot expansion amid economic uncertainty

UPDATE: March 2, 2020: DHL will no longer accept new partners for its StreetScooter pilot and will instead focus on its existing e-mobility operations amid current economic uncertainty, according to a company press release. "We have always said that we do not want to be a car manufacturer. A further scaling of the business without the right partner does not fit our long-term strategic goals," Frank Appel, CEO of Deutsche Post said in a statement. The company plans to continue to electrify its fleet and reduce its environmental impact through route optimization and exploring alternative fuels.

Dive Brief:

DHL will bring its zero-emissions StreetScooter electric vehicles to the U.S. market beginning in 2020, according to Reuters. The plans to pilot the vehicles in the U.S. were mentioned in an October press release.
The delivery vehicles will be tested in two cities — one on the west coast and one on the east coast — beginning next year. Full-scale deployment could come in 2022 or 2023, DHL told Reuters.
In September, DHL announced plans to enter the Chinese market, saying the country was primed to be the largest electric vehicle market in the world.

Dive Insight:

DHL's plans to enter the U.S. with StreetScooter follow Amazon's announcement that it placed an order for 100,000 electric delivery vans from manufacturer Rivian.

This is a trend among logistics providers. UPS has more than 10,000 "alternative fuel and advanced technology vehicles" in its fleet and FedEx has 2,554 electric vehicles in service.

In 2017, DHL announced plans to reduce its logistics-related emissions to zero by 2050. It has deployed more than 9,000 StreetScooters in the European market, according to its 2018 corporate responsibility report released this past May.

"We continuously upgrade our conventional vehicles in accordance with the latest emissions standards," DHL said in the report. "By optimizing our pick-up and delivery routes, we also help reduce emissions and improve air quality in urban areas."

DHL purchased StreetScooter in 2014 and the subsidiary remains unprofitable, according to Reuters.

"StreetScooter continues and will continue to be a very important delivery vehicle provider for us," Deutsche Post AG CFO Melanie Kreis said on the most recent earnings call last month.