The initial 10,000 vehicles will be rolled out in the UK, Europe and North America from 2020 to 2024 worth hundreds of millions of euros each year. UPS has the option to purchase a further order of 10,000 vehicles during this period. UPS venture capital arm also announced a minority investment in Arrival of an undisclosed amount.
The vehicles will be built using Arrival’s new method of assembly using low capital, low footprint microfactories located to serve local communities and profitable from thousands of units.
Denis Sverdlov, Founder and CEO at Arrival, said: “Arrival first announced a partnership with UPS to develop electric vehicles in 2016 with today’s vehicle order and investment accelerating the deployment of fit for purpose electric fleets at scale. Arrival’s unique Generation 2 electric vehicles offer UPS compelling commercial and environmental benefits to make a seamless and cost effective transition to a zero emissions fleet.
“UPS has been a strong strategic partner of Arrival, providing valuable insight to how electric delivery vans are used on the road and how they can be optimised for drivers. Together our teams have been creating bespoke electric vehicles, based on our flexible skateboard platforms, that meet the end-to-end needs of UPS from driving, loading/unloading, depot and back office operations. We are pleased that today’s investment and vehicle order creates even closer ties between our two companies.”