Electric Vehicles Drive the Future of Fleet Management

Sustainability is at the forefront of most businesses' agendas, making transitioning to EVs more common in the fleet management industry. This, coupled with the plummeting cost of EV ownership and the pace at which technology develops, sweetens the deal. 

The Evolution of Electric Vehicles 

In a post-pandemic age, we observed the effects of a dramatic decrease in mobility on sustainability. As consumers worldwide were mandated to stay home, the environment appeared to be taking a massive sigh of relief. 

Amidst the destruction, the pandemic breathed life into more conscious consumerism and a greener outlook for many. In addition, the volatility of fuel prices, the plummeting costs of EV ownership, and the growing penalties enacted on those who own conventional or ICE (internal combustion engine) vehicles have also contributed to EVs picking up steam among the mainstream. 

The First Electric Vehicles 

Despite the surge in EV adoption, electric vehicles have existed longer than one might expect. In fact, electric vehicles trace their roots back to the 1800s, with Robert Anderson developing the first functioning electric car in the 1830s. Anderson's vehicle was powered by a disposable battery that used crude oil. The early iterations of EVs resembled carriages but were hampered by non-rechargeable batteries, which rendered them impractical. 

However, electric cars did not become more practical until the 1890s, thanks to a series of technological breakthroughs in battery development. William Morrison, a chemist from Des Moines, Iowa, led the charge. Morrison's electric carriage resembled a traditional 19th-century horse-drawn carriage that had been converted to accommodate a battery. It could transport 12 people at a maximum speed of 32 miles per hour (km/h). 

New York Taxi drivers were some of the first commercial users of electric cars, and taxi drivers in Berlin and London quickly followed suit. Similarly, large hotel groups used fleets of electric vehicles to transport their guests. It is estimated that one-third of cars were electric in 1900. 

The Rise of the Motorized Vehicle 

As the 20th century began, many people made the shift from traditional horse-drawn carriages to motorized vehicles. This resulted in a rise in steam, gasoline, and electric automobiles. At this time, the market was dominated by steam-powered vehicles, with electric cars coming in a close second. 

In the 1870s, steam vehicles lost their steam. This was because they took too long to start up and needed to be regularly refilled with water to function, rendering them impractical. 

At the time, gasoline or fuel-powered vehicles required drivers to change gears and crank to get started. They were also noisy and emitted harmful pollutants. As more people gained access to electricity, electric cars became a more popular option. They were quiet and easier to maneuver, making them popular among the upper class. 

As electric cars became more popular, big names entered the fray. Porsche's founder, Ferdinand Porche, developed the first hybrid car in the 1900s. Around this time, Thomas Edison and Henry Ford teamed up to attempt building an affordable EV. However, this project fell by the wayside. 

Transitioning to the Internal Combustion Engine 

As gasoline became more accessible, internal combustion engines (ICE) became more affordable and thus more mainstream. Where electricity was only available in cities, gas was cheap and readily available. This resulted in a stagnation in electric cars for most of the 1900s, which were almost obsolete by the mid-1930s. 

The technology surrounding ICE vehicles also matured. Automatic starters were introduced, so the driver no longer had to tediously turn the crank to start the vehicle. 

The Electric Vehicle Comeback 

In the 1970s, as oil prices soared and gasoline shortages occurred, interest in electric cars increased. People sought a solution to oil dependence, so engineers and automakers explored alternative fuel options. 

General Motors' EV-1 was introduced in 1996, pioneering modern electric cars. This vehicle was powered by lead-acid batteries, which could travel up to 160 km per charge, while the nickel metal hydride battery models traveled a maximum of 225km. Unfortunately, these vehicles were too expensive to produce, so production was halted. 

Hot on their heels was the Toyota Prius, released in 1997. When speaking of EVs, this would be one of the first most people would remember as it was the first mass-produced hybrid electric vehicle. Due to its environmentally friendly nature and the rising gas prices at the time, the Prius has been a major success since its worldwide release in 2000. 

In 2003, we saw a major turning point in modern EVs when Martin Eberhard and Mark Tarpenning formed Tesla Motors. In 2008, Tesla launched its lithium-ion-powered Roadster, which could travel an unprecedented 320km on a single charge. 

The EVolution 

Tesla's lithium-powered vehicles birthed a new era of EVs as we know them today, and most of the electric cars being manufactured today are powered by the same technology. 

As new battery technology was developed, EVs became more affordable as the cost of manufacturing them lowered. This led to many automotive manufacturers entering the electric game. 

The use of electric vehicles has skyrocketed to around 40 million EV drivers in 2024, making the industry worth over $250 billion. This is far from the 3 million recorded EV drivers in 2017. 

With the growing emphasis on global warming, carbon emissions, and greener operations, we are seeing more consumers make the switch to electric vehicles (EVs). Whether they are bikes, cars, or trucks, the evolution of EVs is not slowing down. 

How Fleets are Driving Electrification 

Fleets operate on a large scale, whether it's trucks, buses, taxis, or rideshare vehicles, and consequently produce higher emissions. Although the trucking industry represents a small segment of vehicles on the road, it accounts for 40% of all road transport emissions. This, combined with the associated maintenance costs, makes fleets an ideal candidate for EVs. 

Proper asset utilization is imperative to a successful fleet. EVs, which emit zero emissions and are cheaper to maintain, can help fleet operators cut costs and reduce their carbon footprint. Climate Group's EV100 program strives to make electric transport the new normal by 2030.  

Moreover, Climate Group reported that over 400,000 corporate EVs are on the road globally, a 93% increase from 2022’s figures. Companies like Amazon, DHL, IKEA, and Waste Management are electrifying their fleets. 

This influx of corporations shifting to EVs can be due to: 

• Increased Availability: As battery technology has evolved, more companies manufacture electric vehicles. Climate Group reported that 300 different battery electric vehicle models are available today. 
• Conscious Consumerism: As mentioned, conscious consumerism has increased, and sustainability has become a greater priority for many. For this reason, your brand will be more positively received by consumers if it is environmentally friendly. 
• Volatile Fuel Prices: As gas prices reach an all-time high, fleet operators can save much money by switching to EVs. 
• Governmental Initiatives: Governments are seeing the benefits of going electric for our climate and economy. As a result, they are implementing timelines for EV transitions and enacting policies to support them. 

The Benefits of EVs in Your Fleet 

We've established that EVs are a great fit for fleets because they're more sustainable and will reduce reliance on gasoline, a costly expense. However, EVs are an excellent solution for your fleet for multiple other reasons, such as: 

Enhanced Performance 

EVs can reach maximum torque and produce greater acceleration from a full stop. This is particularly useful when carrying a heavy load, such as passengers or freight. Additionally, EVs are quieter than ICE vehicles. 

Reduced Maintenance 

Electric fleet vehicles don't utilize oil, transmission fluid, or spark plugs, which contributes to the higher cost of ownership with ICE vehicles. As EVs are free of this, they don't require maintenance as frequently. 

Improved Charging Infrastructure 

Taking the time to fuel your vehicle adds up and can lead to a loss in productivity, especially when your drivers are traveling long distances and need to visit the gas station more regularly. When operating an EV, drivers can charge their vehicles overnight or during their downtime, maximizing efficiency.