MOVIN To Explore EVs For Logistics, Launch Phase 2 Expansion

Mukul Yudhveer Singh
10 May 2023
12:28 PM
2 Min Read

Incepted in May 2022, the JV between UPS and InterGlobe has delivered over 400,000 packages, and its second phase of expansion would focus on exploring alternate fuels.

In Box - JB Singh, Director, MOVIN Express
In Box - JB Singh, Director, MOVIN Express

MOVIN, a joint venture between the United States-based UPS and India's InterGlobe Enterprises, is open to exploring the deployment of electric vehicles in its logistics fleet. 

During a conversation with Mobility Outlook, JB Singh, Director, MOVIN Express, noted that the company has been in active discussions with EV OEMs and EV fleet providers for the same. 

“We want to be as responsible and as sustainable as we can. Hence, not just EVs, MOVIN is also ready to explore more alternate fuel types in India,” he said.

Incepted in May 2022, the JV has so far delivered over 400,000 packages. Only operating in the B2B logistics vertical, the company moves goods in the apparel, FMCG, white goods, electronics, IT peripherals, automotive components, and healthcare equipment sectors.

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Capex Not A Challenge

Singh highlighted that the Capex part is 'not at all' a challenge for the company, as it is taking a calculated approach to expanding its presence in the country. As of now, it only serves 49 cities in India.

“There is a big difference when you move goods and parcels in the B2C segment and when you move the same in the B2B segment,” he highlighted. He added that the responsibility and accountability in the B2B sector is more. 

For instance, while moving components of a vehicle to an OEM, it not only has to ensure the same is delivered on time but also ensure that there is no wear and tear in the components.

“MOVIN has not lost or misplaced a single parcel so far in its almost one-year journey in India,” Singh explained. While this is InterGlobe's first experience in the logistics vertical, UPS has already tried its hands in the country before.

Ufku Akaltan, President, Indian subcontinent, Middle East and Africa, UPS, during the launch of MOVIN last year, said, “With a strategy of customer first, people led, innovation-driven, UPS further expands its global network, including healthcare solutions, through a unique partnership that creates a suite of services to serve B2B customers’ need to grow.”

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Opportunity For Indian EV OEMs, EV Fleet Operators

While the company currently has about 400 vehicles on its payroll at the moment, phase-2 of its expansion plans aims to increase this number by a considerable amount. “We are adding more zip codes in our ecosystem with every passing day,” Singh said.

As per the website of UPS, its global fleet includes over 13,000 alternate fuel and advanced technology vehicles, including more than 1,000 electric and plug-in hybrid electric vehicles on the road. Further, EVs in the UPS ecosystem are just one part of its alternative fuel and advanced technology fleet plans to impact environmental sustainability.

Notably, UPS plans to achieve carbon neutrality by 2050, and by 2025 it aims to use 40% alternative fuel in ground operations. Interestingly, these plans might trickle down in India via MOVIN. However, the EV and alternate fuel ecosystems in the country are not as ready as in European and American countries.

To deploy EVs in India, MOVIN will first test electric two-wheelers and electric three-wheelers for last-mile deliveries, electric three-wheelers, and electric four-wheelers for the hub to first mile and vice-versa. 

Singh concluded, “We are open to interacting with EV fleet operators, EV OEMs, and charge point operators, and are hopeful that within a few months, we will be able to deploy the first fleet of EVs for MOVIN in India.”

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