BrightDrop Expands Delivery Deal with Merchants Fleet | GM Electric

BrightDrop Secures Large Order from Merchants Fleet

General Motors’ BrightDrop has added a second customer for its EV410 electric delivery vans. Merchants Fleet, a fleet management company, announced on Thursday a purchase order for 5,400 of these mid-sized electric vehicles.

Expanding Partnership

This new order supplements Merchants Fleet’s prior commitment to acquire 12,600 of BrightDrop’s larger EV600 vans. Consequently, the combined order now totals 18,000 vehicles, representing BrightDrop’s most substantial client order received to date.

BrightDrop's Origins and Product Line

BrightDrop represents GM’s foray into the first-to-last-mile delivery sector, having been launched in early 2021. The business originated from GM’s Global Innovation group, which also developed OnStar Guardian, OnStar Insurance, and GM Defense.

To date, the division has introduced three distinct products. These include the EV600, the EV410, and an electric pallet known as the EP1.

Van Specifications and Customer Base

The EV600 offers an estimated range of 250 miles and provides 600 cubic feet of cargo capacity. The EV410, revealed in September, features approximately 400 cubic feet of cargo space.

Currently, two customers have committed to these vans. FedEx has secured a deal for the EV600, anticipating initial deliveries during the holiday season. Verizon, a major telecommunications provider, has also placed an order for an unspecified quantity of EV410 vans.

Manufacturing and Technology

Both the EV600 and EV410 will utilize GM’s Ultium battery technology. Production of both models will take place at the CAMI Assembly plant in Ingersoll, Ontario.

GM is investing $1 billion CAD ($788 million) to transform the CAMI facility into Canada’s primary large-scale production site for commercial electric vehicles.

Strategic Importance for GM

The emergence of BrightDrop signals GM’s belief that the delivery market offers a significant opportunity to capitalize on its substantial investments in electrification and connected vehicle technologies. The company projects the parcel and food logistics market will exceed $850 billion by 2025.

Merchants Fleet's EV Strategy

Merchants Fleet currently manages a fleet of over 150,000 vehicles across North America, including a growing number of electric vehicles. A company spokesperson indicated that numerous clients have expressed interest in future vehicle acquisitions.

These include the BrightDrop EV600 and EV410, the Ford F-150 Lightning, and the electric Chevrolet Silverado.