Amazon Going Electric

American corporations are continuing to reduce greenhouse gas emissions and make their operations greener around the world. Retail giant, Walmart has committed to achieving zero waste in their global operations by 2025. American retailer, Target has committed to source 100% of its electricity from renewable energy. Technology giants Alphabet, Facebook and Microsoft are rapidly moving toward zero greenhouse gas emissions in all their global operations.

E-Commerce giant, Amazon.com, Inc. has been investing heavily in renewable energy projects around the world. The company has now announced plans to use electric vehicles (EVs) in all its operations in North America. On September 19, 2019, Amazon announced it has ordered 100,000 Rivian electric delivery vans. The EVs will begin service in 2024 and will serve Amazon’s 80 fulfillment centers and 500 Whole Food Markets in North America.

Amazon’s announcement is driven by concerns over climate change and economics. Although the purchase price of an EV is higher than an internal combustion engine vehicle (ICEV), the operating costs for an EV is significantly less than an ICEV. The fuel cost per mile for an ICEV is also significantly higher than the charging cost per mile for an EV. It is almost a certainty that the cost for oil will once again spike at some point in the foreseeable future, driving up the price for fuel for the ICEV.

Amazon.com, Inc., headquartered in Seattle, Washington is a multinational technology company. The company focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. Rivian, headquartered in Plymouth, Michigan develops vehicles, products and services related to sustainable transportation. The company’s expertise is making premium electric sport utility vehicles and pickup trucks.

In my opinion, Amazon’s commitment to Rivian is the beginning of a trend to EVs by vehicle fleet owners in America. Transportation electrification will have a significant impact in reducing greenhouse gas emissions in America.

In 2017, the United States Environmental Protection Agency reported that the sectors that generated over 90% of the greenhouse gases in our country were Transportation (28.9%), Electricity Generation (27.5%), Industry/Manufacturing (22.2%) and Commercial/Residential (11.6%).

The primary sources of greenhouse gases in the transportation sector are cars, trucks and planes. Transportation electrification in American business will accelerate the installation of public charging stations and the move to EVs in the homes across America.

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