FedEx and Walmart Sign Deals with General Motors

Both Walmart and FedEx have signed deals with General Motors for thousands of new BrightDrop electric vans.

The companies plan to add thousands of electric delivery vans produced by GM to their massive vehicle fleets in the coming years.

Walmart has signed a new agreement with GM to reserve 5,000 BrightDrop vans, while FedEx is building on an initial order of 500 vehicles.

For Walmart, the 5,000 BrightDrop’s EV600 and smaller EV410 electric delivery vans is aimed to support the retail giant’s last mile delivery network and goal of operating a zero-emissions logistics fleet by 2040.

FedEx has agreed to a deal for 2,000 more vehicles over the next several years. That order could potentially increase to 20,000 electric vans, according Richard Smith, FedEx regional president of the Americas.

Both Walmart and FedEx plan to add thousands of electric delivery vans produced by General Motors to their massive vehicle fleets in the coming years, the companies announced recently.

“BrightDrop’s real. They’re here now. Their trucks are on the road in California for us delivering packages,” Smith said. “They have a vehicle that works as advertised, and we love it. We want to buy a lot more of them.”

BrightDrop, a GM subsidiary, now has 25,000 confirmed reservations for its vans, BrightDrop CEO Travis Katz told CNBC.

GM expects to complete FedEx’s initial order of 500 vans this year, followed by deliveries for Walmart beginning in 2023, according to the CEO.

“So part of what is exciting about the conversations we’re having with them is we’re both really looking at this market through the lens of technology. How do you use technology to rethink operations and to drive more efficiency?” Katz told CNBC.

GM, Walmart and FedEx declined to disclose any financial details about the deals.

“This is really a momentum story,” Katz said. “What I can tell you is demand for these vehicles is through the roof. We’re seeing tons of customer interest.”
Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.