Innovation Driven

Alternative-Fuel Vehicles on the Move

We continue to expand our “rolling laboratory,” UPS’s fleet of 10,300 vehicles that test lower-emission fuels and technologies on the road every day. In 2020, 25 percent of vehicles purchased will be alternative fuel or advanced technology vehicles and, by 2025, alternative fuels will supply 40 percent of our total ground fuel needs. All of these initiatives help advance our goal to reduce emissions across global ground operations.

Scaling Our Alternative Fleet

Beyond helping us reduce our own footprint, our rolling lab is helping grow the alternative fuel market worldwide. “Fleet electrification is one of the areas where we seek to act as an industry leader,” says Luke Wake, Director of Automotive Engineering & Advanced Technology Group, UPS International. “UPS has a global network that can integrate ground-breaking vehicle component suppliers and manufacturers, which moves the automotive market forward faster, delivering sustainable, low-emission solutions that work today and can scale up tomorrow.”

Our rolling lab is always growing. Several initiatives announced in 2019 and 2020 are moving us closer toward our goal to have 25 percent of vehicles purchased in 2020 run on alternative fuel or advanced technology.

Globally, we are investing in both more energy-efficient vehicles and cleaner fuel to power them. Between 2020 and 2022, we will purchase more than 6,000 heavy-duty gas trucks, terminal tractors, and medium-duty walk-in vans equipped with compressed natural gas (CNG) fuel systems provided by Agility Fuel Solutions. By 2026, UPS will also purchase 250 million gallon equivalents of renewable natural gas (RNG). Our purchase of 170 million gallon equivalents of RNG from Clean Energy Fuels Corp. marked the largest-ever purchase of RNG by any company in the U.S. UPS’s RNG purchase will yield at least a 70 percent reduction in lifecycle greenhouse gas emissions compared to using diesel or gasoline.

$1 billion+

invested in alternative fuel and advanced technology vehicles, fuels, and infrastructure over the past decade.

Investments in Lower-Emission Deliveries

UPS will deploy

10,000

all-electric delivery vans, custom-built by EV-manufacturer Arrival, in North America and Europe. Equity investment in Arrival gives UPS the option to purchase 10,000 additional EVs.

30+

urban logistics projects are improving last-mile deliveries in cities around the world.

Pre-ordered

125

of Tesla’s new fully-electric Semi tractors.

We will purchase

6,000+

CNG vehicles between 2020 and 2022, almost doubling our CNG fleet.

Fueling the fleet will include

250 million

gallon equivalents of RNG, the largest purchase commitment in U.S. history.

Propane-powered engines have been in our fleet since 1982, and now number more than

2,400

worldwide.

Investments in Lower-Emission Deliveries

UPS will deploy

10,000

electric delivery vans, custom-built by Arrival, in North America and Europe.

We will purchase

6,000+

CNG vehicles between 2020 and 2022, almost doubling our CNG fleet.

30+

urban logistics projects are improving last-mile deliveries in cities around the world

Fueling the fleet will include

250 million

gallon equivalents of RNG, the largest purchase commitment in U.S. history.

Pre-ordered

125

of Tesla’s new fully-electric Semi tractors.

Propane-powered engines have been in our fleet since 1982, and now number more than

2,400

worldwide.

Accelerating Fleet Electrification

Since 2016, UPS and Arrival have worked together to pilot electric vehicle (EV) concepts of different sizes. We announced our intention to co-develop a test fleet of 35 electric delivery vehicles in London and Paris, and Arrival is the first manufacturer to provide purpose-built EVs for UPS’s specifications. In 2020, we made an announcement that will help both UPS and Arrival grow our impact even further. UPS Ventures, our venture capital arm, completed a minority investment in Arrival, which will allow the company to continue its ground-up approach to the design and production of EVs. These vehicles are based on a modular design, which helps reduce maintenance time and costs. We also announced a commitment to purchase 10,000 custom-built EVs, which we expect to deploy in Europe and North America.

Giving Diesel Vehicles a New Lease on Life

In Germany, UPS is converting formerly diesel-powered trucks into EVs. No all-electric vehicles in the 7.5-tonne size class were currently available in the market, so we worked with partners to create our own—and added features that improve upon the conventional vehicle it replaces. Of the 33 new conversions announced in 2019, 15 will run purely on electricity and the remaining 18 will be plug-in hybrids. Several small businesses are providing the technological know-how to make this possible.

Another recent addition to our rolling lab in Germany is a diesel delivery truck that has been converted to electric and incorporates a dual-motor rear axle drive. It is currently being tested on the streets of Cologne. Powerful motors and independent drives on each rear wheel increase the maneuverability of the delivery truck, allowing it to handle heavy payloads and steep inclines. German auto-manufacturer BPW performed this refit, which gives the truck nearly 10 times the torque of an average four-cylinder car engine.

This test vehicle is a perfect encapsulation of the rolling lab philosophy. With breakthroughs like these, UPS is creating a tangible example of the future of sustainable transport.

ORION Gets Dynamic

The most sustainable mile is the one we never drive. UPS’s award-winning On-Road Integrated Optimization and Navigation platform, known as ORION, provides drivers with the most efficient route for deliveries and pickups on more than 66,000 routes in the United States, Canada, and Europe. And it keeps getting better. Most recently, we enhanced ORION with Dynamic Optimization, which recalculates individual package delivery routes throughout the day as traffic conditions, pickup commitments, and delivery orders change. This technology enhancement will accelerate reductions in miles, fuel, and emissions.

UPS Truck

Annual Savings Generated from ORION

100 million

miles

UPS Truck
10 million

gallons of fuel

UPS Truck
100,000

metric tonnes of greenhouse gas emissions

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