Woolworths launches new fleet of electric online delivery vehicles

In a significant move towards a greener future, Woolworths has announced the launch of a new fleet of electric online delivery vehicles. The transition to electric vehicles marks a pivotal moment in the logistics industry's journey towards reducing carbon emissions and embracing sustainability. Ndiya Magadakela, CEO of Everlectric, sat down with CNBC Africa's Zanele Morrison to discuss the implications of Woolworths' decision and the broader implications for the industry. The move highlights a shift towards electric mobility and signals a commitment from logistics players to embrace more environmentally friendly practices. Magadakela emphasized the readiness of the logistics industry to embrace electric vehicles, citing commitments from various players to reduce their carbon footprint and move towards net-zero emissions. Woolworths' swift decision-making and commitment to sustainability were commended by Magadakela, who highlighted the importance of taking action quickly and efficiently. The partnership between Everlectric and Woolworths stemmed from a 24-month pilot program aimed at testing electric mobility solutions in South Africa. Through this partnership, Everlectric has provided Woolworths with 41 electric vehicles for their food delivery business, demonstrating the feasibility and effectiveness of electric vehicles on South African roads. One of the critical aspects of the partnership is the sourcing of electric vehicles from a Chinese supplier, Psych Maxus, who specializes in one-ton panel vans built from the ground up for electric operation. Magadakela discussed the cost-efficiency of electric vehicles, emphasizing that despite initial higher costs, the total cost of ownership for electric vehicles is lower, resulting in long-term savings for clients. Looking ahead, Magadakela outlined a vision for the localization of electric vehicle manufacturing in South Africa, highlighting the potential for assembling vehicles locally and sourcing components within the country. By stimulating market demand through initiatives like Woolworths' electric vehicle fleet, the industry aims to encourage OEMs to cater to the growing interest in electric vehicles in the country. The discussion also touched upon the operational, financial, and technical considerations that underpin the transition to electric vehicles. Magadakela stressed the importance of ensuring electric vehicles make sense for clients not only in terms of sustainability but also operationally and financially. Woolworths' successful implementation of electric vehicles serves as a testament to the viability of green initiatives in the logistics sector. As the industry continues to evolve and embrace electric mobility, the potential for cost savings, operational efficiency, and environmental benefits becomes increasingly evident. Magadakela's insights shed light on the transformative impact of electric vehicles in driving sustainable practices within the logistics industry. In conclusion, the collaboration between Everlectric and Woolworths underscores a shared commitment to sustainability and innovation in the logistics sector. As more companies follow suit and adopt electric vehicles, the transition to a greener economy gains momentum, paving the way for a more sustainable future.