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Amazon to Invest over 1 Billion Euros to Electrify the European Transportation System

The online retailer announced a £300 million investment in the UK

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Sadaf Hasan
Sadaf Hasan
Aspiring reporter covering trending topics

UNITED KINGDOM: Amazon announced on Monday that it will invest more than 1 billion euros ($974.8 million) in electric vans, lorries, and low-emission package hubs across Europe over the next five years in an effort to hasten its transition to a net-zero carbon footprint.

The store stated that the investment was also intended to promote innovation in the transportation sector and encourage the development of more public charging stations for EVs.

The online retailer announced a £300 million investment in the UK, where it hopes to increase its fleet of electric HGVs to 700 by 2025, from only five at present, and more than triple its fleet of electric vans to 10,000 across Europe.

The firm stated that over 100 million parcels were delivered by its 3,000 zero-emission vans in 2021, but it did not specify what proportion of its current European last-mile delivery fleet is electric.

In the upcoming years, Amazon said it intends to buy more than 1,500 electric heavy goods vehicles, which are used for “middle-mile” transportation to package hubs.

There are currently few zero-emission electric vans and trucks available for purchase, despite the fact that several major logistics companies, including package delivery providers United Parcel Service Inc. (UPS.N) and FedEx Corp. (FDX.N), have committed to buying significant numbers of them.

Startups compete with established automakers such as General Motors Co (GM.N) and Ford Motor Co (F.N) to be the first to market with electric vans or trucks.

At the company’s European distribution centres and warehouses, hundreds of rapid charging stations for electric vehicles will be installed, enabling the new low-carbon fleet to charge in around two hours.

Additionally, the business wants to expand from the more than 20 European towns where it now has “micromobility hubs,” which allow delivery by foot and cargo bike, by doubling that number.

The expansion plan coincides with a surge in online sales and deliveries following the COVID epidemic, which has helped boost profitability for the American retail company founded by billionaire Jeff Bezos.

Moreover, the rising cost of fuel since Russia’s invasion of Ukraine has compelled businesses to think about other modes of transportation.

Amazon expressed the hope that by adopting this action, other retailers would be inspired to invest in electric vehicles and support the expansion of public charging infrastructure.

“Deploying thousands of electric vans, long-haul trucks, and bikes will help us shift further away from traditional fossil fuels,” said Andy Jassy, the CEO of Amazon.

He stated that “a substantial and sustained investment” was necessary to achieve net zero carbon emissions, and the transportation system was “one of the most difficult areas” to decarbonize.

Amazon’s largest-ever purchase will be 100,000 electric vehicles from Rivian Automotive Inc. (RIVN.O) through 2025. By 2040, the organisation hopes to achieve net-zero carbon.

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