IKEA speeds introduction of electric trucks

Retail giant IKEA is leasing electric trucks to delivery contractors

IN A boost to the uptake of electric delivery trucks in Australian operations, retail giant IKEA is supporting transport companies to expand the use of electric trucks in their fleets.

Since 2019, IKEA has partnered with ANC Delivers, All Purpose Transport, and Kings Transport to implement home deliveries with electric vehicles across Australia.

With most trucks owned by small businesses or subcontractors, a major challenge to operators wanting to add electric trucks to their operations has been the higher up-front costs, said Alexandra Kelly, Zero Emissions Project Leader, IKEA Australia & New Zealand.

“Electric vans and trucks remain significantly more expensive than diesel alternatives, which is a major challenge for drivers who operate with low margins,” Ms Kelly said.

Under a new leasing arrangement, IKEA bought four Volvo FL electric trucks, with a range of up to 450 kilometres and a payload of up to 5,500kg, which will be made available to delivery partners.

"The Volvo electric trucks, designed for longer distances, will be leased to ANC Delivers contractors through CarBon Leasing. ANC Delivers has been a valued partner to IKEA in our transition to zero emissions, and their continued support with this new pilot removes the barrier of upfront vehicle costs for contractors. By offering a leasing package as an attractive alternative to diesel trucks, drivers can access electric vehicles without financial risk.”