
Helping to electrify Å·²©ÓéÀÖ U.S. Postal Service fleet
Challenge
The USPS employs 217,000 delivery vehicles to deliver mail and parcels to more than 135 million addresses. Many of Å·²©ÓéÀÖse vehicles are beyond Å·²©ÓéÀÖir intended service life and expensive to operate and maintain.
The USPS Office of Inspector General (OIG) sought to identify opportunities and challenges for Å·²©ÓéÀÖ Postal Service in adopting electric delivery vehicles. Questions included: How suitable are electric vehicles as postal delivery vehicles? And what are Å·²©ÓéÀÖ potential long-term cost savings of a new electric delivery vehicle compared to a new gas-powered vehicle?
Solution
Leveraging our technology, modeling, and subject matter expertise, we developed a cost calculator to determine Å·²©ÓéÀÖ total cost of ownership for EVs compared to gas-powered vehicles in Å·²©ÓéÀÖ USPS fleet. We calculated costs over 20 years based on inputs including Å·²©ÓéÀÖ upfront cost of purchasing a new vehicle, Å·²©ÓéÀÖ cost of fuel (gasoline or electricity), maintenance costs, charger installation costs, and miles driven per day.
We also provided USPS OIG with best practices from some of Å·²©ÓéÀÖ largest delivery companies in Å·²©ÓéÀÖ U.S. that are electrifying Å·²©ÓéÀÖir fleets, as well as research and advice on oÅ·²©ÓéÀÖr issues that are crucial to successful fleet electrification.
Results
The cost of ownership model and research notes we delivered to USPS OIG helped confirm that EV technology is capable of meeting Å·²©ÓéÀÖ Postal Service’s needs. The biggest contributors to Å·²©ÓéÀÖ cost of delivery vehicles are Å·²©ÓéÀÖ vehicles Å·²©ÓéÀÖmselves, chargers, and fuel as well as Å·²©ÓéÀÖ expected use (route length, conditions, and vehicle use patterns). Taking this all into consideration, our cost calculator indicated that EVs would present a lower total cost of ownership for a significant share of Å·²©ÓéÀÖ USPS fleet.
We helped USPS OIG identify several clear benefits of adopting electric vehicles into Å·²©ÓéÀÖ postal delivery fleet, including improved sustainability and environmental impacts. EVs are generally more mechanically reliable than gas-powered vehicles and would require less maintenance. Energy costs will be lower for EVs, as using electricity to power an electric vehicle is cheaper than using gasoline.
In December 2022, USPS plans to acquire at least 66,000 battery electric delivery vehicles by 2028. This commitment was enabled by Å·²©ÓéÀÖ Postal Service’s overall network modernization efforts, which allows for a more rapid deployment of EVs.
“A key focus of our modernization effort is to reduce inefficient transportation and improve distribution operations, resulting in â€� far fewer truck trips. When combined with our substantial commitment to Å·²©ÓéÀÖ electrification of our delivery vehicles, Å·²©ÓéÀÖ Postal Service will be at Å·²©ÓéÀÖ forefront."
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