Friday was a big day for Amazon as it announced a placing of an order of more than 1,800 electric vans from German automaker Daimler’s Mercedes-Benz. The move comes for improving its carbon footprint and as its endeavor to become carbon-neutral by 2040.
The order consisted of 1,200 of Mercedes’ larger eSprinter models and 600 of its midsized eVito vans. The price paid for the same was not disclosed.
Amazon said the move was part of its aim to meet the goals of the Paris climate agreement a decade ahead of schedule. US President Trump back in 2017 had infamously pulled the U.S. back from the accord — which is designed to prevent global temperatures from rising over 2 degrees Celsius above pre-industrial levels.
Amazon CEO Jeff Bezos said, “We welcome the bold leadership demonstrated by Mercedes-Benz by signing up to The Climate Pledge and committing to ambitious action to address climate change. We need continued innovation and partnership from auto manufacturers like Mercedes-Benz to decarbonize the transportation sector and tackle the climate crisis.”
Amazon showed its concern for the issue of Global Warming seriously in June when it launched a $ 2 billion VC fund for making a relevant investment into climate change initiatives. For Amazon, this is not the first time for such a bulk of electric vehicles as in the past it had agreed to purchase 100,000 vans from Rivian, a start-up in which it had made huge investments of millions of dollars.
But the company’s logistics model has been a source of worry for the postal services industry. Traditional postage firms have been making investments of their own to challenge Amazon’s dominance and change with the times. UPS, for example, ordered 10,000 electric vans from U.K. start-up Arrival at the start of the year.
The COVID 19 pandemic was an unexpected period of quantum growth for Amazon’s business as the online delivery model boomed due to people been confined to indoors. Bezos saw his wealth top S200 billion earlier in the week as the price of its share hit the roof, up by 84 %, year-to-date.