General Motors is launching a new business later this month called BrightDrop.
BrightDrop will make electric delivery vehicles and offer other technology and services to delivery companies such as FedEx and UPS.
It also gives GM an added revenue stream.
The start-up will initially offer two products: The EP1, an electrically powered pallet to move packages, easing the burden on delivery company workers’ bodies. Also, the EV600, a commercial electric truck resembling the familiar big brown UPS trucks.
GM said a pilot program between FedEx and BrightDrop showed it helped improve FedEx’s efficiency, safely and sustainably. BrightDrop will deliver 500 of the EV600 trucks to FedEx, its first customer, later this year.
“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,” said GM CEO Mary Barra in a statement.
More than commercial cars
GM is not the first carmaker to enter this space. In 2019, Amazon said it would purchase 100,000 electric vans from electric truck maker Rivian. Amazon said it expects to deploy 10,000 of them by 2022.
The difference is BrightDrop will offer software and services as well.
It will help fund GM’s transformation to an all-electric automaker too. GM has pledged to invest $27 billion in