IKEA Now Completes Delivery in Shanghai With Its Electric Vehicle Fleet

IKEA Now Completes Delivery in Shanghai With Its Electric Vehicle Fleet

August 12th 2019

Every IKEA delivery In Shanghai is now made with its electric vehicle fleet, as Shanghai hit its goal early. The globally recognized store is planning to decarbonize its delivery fleet completely.

Ingka Group, IKEA’s parent firm, in 2018, made a courageous pledge to make use of electric vehicle fleet for every item delivery done globally by 2025. IKEA is amongst the first firms to sign the EV100, a worldwide initiative seeking firms to hasten the shift toward EVs.

The commitment began with a short-range goal of completing the full shift to Electric Vehicles (EVs) within five cities by 2020. The five cities include Amsterdam, Los Angeles, New York, Paris, and Shanghai.

By 2020, IKEA’s delivery fleet in Amsterdam, Los Angeles, New York, Paris, and Shanghai are set to be wholly decarbonized. Also, its entire fleet globally is expected to join this fit by 2025.

But Shanghai is already hitting the goal early, as every IKEA delivery is now completed using its electric vehicle fleet. Since January 23 of 2019, IKEA has already accomplished that feat. The firm declared all home deliveries in Shanghai’s inner city are now completed using EVs.

 The head of sustainable mobility at Ingka Group, Angela Hultberg said: “We needed to task both other firms of its possibility and us, and Shanghai is amongst the major cities on earth.”

Angela Hultberg further added, “A city struggling with air affluence, is the very issue we are trying to solve. [Shanghai] seemed like the perfect city to begin.”

To new ideas, IKEA came through on its plot to create local partnerships deals. The regional partnerships agreements are intended to cover Electric Vehicle sourcing and adequate charging setup. In the case of Shanghai, IKEA new partnership comes with Beiye New Brother Logistics Co., a locally founded distribution and warehousing firm.

Hultberg on Beiye says. “They have been willing to realize this transformation along with IKEA.”

A crucial part of these transformations was IKEA’s partnership with DST. The Shenzhen-based firm is responsible for leasing electric trucks and vans. Currently, DST handles over 15,000 logistics trucks and vehicles, alongside several charging stations in Shanghai and other major cities. The partnership-motivated approach in Shanghai is one of the many deals IKEA tries to imitate globally.

Hultberg in Shanghai, confirms access to the shared fleet offered by DST’s “allows us to get EV’s quicker, taking off months from our timeline.”

IKEA’s new logistics partner in China, New Brother also made a handful purchase of electric delivery trucks. But as IKEA plans to attain a 100% complete decarbonize deliveries, other significant locations like New York are yet to develop a robust EV system.

The global firm is considering other options like working directly to get zero-emission trucks and vehicles from car manufacturers. Delivery cars and trucks are undeniably crucial, but IKEA is also exploring other options for smaller deliveries like electric utility tricycle and cargo bicycle.

Top delivery carriers like FedEx and UPS, are also in line with IKEA on this idea. These top delivery carriers are also tending towards a shift to low-emission options, and UPS has similarly commenced leading deliveries through electric bikes.

All through this development, IKEA is correspondingly seeking to transform its customer performance to encourage the use of its electric fleet. A part of IKEA’s expansion tactic would be to create smaller stores in major cities, instead of having massive stores around the suburbs. This tactic is set to inspire customers to reach them via biking, transit, or walking.

In 2020, IKEA plans to open a new store in Shanghai that would link directly to the city’s Metro system. Instead of the regular 400,000 sq. Ft stores accessible across the United States, the new IKEA store in Shanghai will be somewhat lesser.

These expansions are part of IKEA’s larger sustainability drive to reducing 70% of its total carbon footprint by 2030. The sustainability drive by 2020 will involve the elimination of all plastics from IKEA stores and products. Also, by 2020, IKEA aims to implement for its operations a 100% reusable energy process.

The removal of emissions from its transport process “remains an important step toward attaining those goals,” says Hultberg.

“What we learned, and what applies in all markets, is that been successful requires the right partners, and the nerve to challenge our present working processes,” Hultberg added.