Energy Efficiency, GHG Emissions, Industrial - January 13, 2021
GM launches BrightDrop business to electrify delivery and services
General Motors announced on Jan. 12 its new business, BrightDrop, which will offer an integrated ecosystem of electric first-to-last-mile products, software, and services to empower delivery and logistics companies to move goods more efficiently. These solutions are designed to help businesses lower costs, maximize productivity, improve employee safety and freight security, and support overall sustainability efforts.
“BrightDrop offers a smarter way to deliver goods and services,” Mary Barra, GM chairman and CEO, said in a statement. “We are building on our significant expertise in electrification, mobility applications, telematics, and fleet management with a new one-stop-shop solution for commercial customers to move goods in a better, more sustainable way.”
BrightDrop was born out of GM’s Global Innovation organization and joins the lineup of other recently launched Global Innovation startups, such as OnStar Insurance, OnStar Guardian and GM Defense. From a growth strategy standpoint, this new business will unlock areas of B2B, expansion of the Ultium platform and software and service opportunities.
GM estimates that by 2025, the combined market opportunity for parcel, food delivery, and reverse logistics in the U.S. will be more than $850 billion. According to the World Economic Forum, demand for urban last-mile delivery, fueled by e-commerce, is expected to grow by 78% by 2030, leading to a 36% increase in delivery vehicles in the world’s top 100 cities. At the same time, this increase in demand is expected to cause delivery-related carbon emissions to rise by nearly one-third.
To help meet this surge in demand, while reducing the impact on the planet, BrightDrop is developing an integrated set of solutions to help improve almost every aspect of first-to-last-mile delivery. BrightDrop will initially serve customers in the U.S. and Canada. FedEx Express will be the first customer of the new, integrated solution.