EV Big Box Battle: GM Launches BrightDrop
By Phil Royle – Jan. 13, 2021
During the January 2021 Consumer Electronics Show, GM introduced BrightDrop, a new arm of General Motors that will “offer an ecosystem of electric first-to-last-mile products, software, and services to empower delivery and logistics companies to move goods more efficiently.” In other words, GM has just thrown its EV hat into the commercial market big box battle.
BrightDrop initially aims to produce two products, the EP1 and the EV600. The EP1 is an electric pallet system designed to shift goods over short distances. But while GM said “first-to-last-mile,” it would be more accurate to say the EP1 electric power-assisted cart is capable of transporting deliveries of up to 200 lbs stored within its 23 cu-ft box to your doorstep – assuming no other steps are present along the way.
BrightDrop’s EP1 is an electrified pallet that can store up to 200 lbs of goodies in its 23 cu-ft box.
Considering its digital tracking integration, the EP1 could be an efficiency game changer for cutting-edge warehouses. The last few feet of the delivery, meanwhile, are the killer, especially for urban locations. But that’s always going to be a struggle.
The EP1, GM says, will launch in early 2021.
The second BrightDrop product announcement was the EV600, an EV delivery vehicle utilizing GM Ultium underpinnings. According to GM, the EV600 will sport a 250-mile range, along with the ability to add 170 miles of range in one hour via a 120 kW DC fast charger. Quick math indicates that charge time roughly translates to 50-85 miles of range added while scarfing down a greasy burger mid-shift, essentially giving the EV600 the capacity to deliver goods spanning a 300-mile route each day should the burger joint be near a DC fast charger.
The EP1 smartly integrates with the EV600’s 600 cu-ft of cargo area, making the EV600-EP1 duo essential for companies going all-in on BrightDrop’s corporate solution. Unfortunately, only a select few are slated to receive the sub-10,000 GVWR EV600 delivery vans by the end of 2021 – likely FedEx Express, based on GM’s press release. Orders will open to the public in early 2022.
The EP1 and EV600 will also both integrate with BrightDrop’s upcoming cloud-based fleet management software.
GM launching BrightDrop makes sense in many ways, and actually sticks to GM’s existing company methodology. To quote GM:
“BrightDrop was born out of GM’s Global Innovation organization and joins the lineup of other recently launched Global Innovation startups, such as OnStar Insurance, OnStar Guardian and GM Defense. From a growth strategy standpoint, this new business will unlock areas of B2B, expansion of the Ultium platform and software and service opportunities.”
“GM estimates that by 2025, the combined market opportunity for parcel, food delivery, and reverse logistics in the U.S. will be over $850 billion. According to the World Economic Forum, demand for urban last-mile delivery, fueled by e-commerce, is expected to grow by 78 percent by 2030, leading to a 36 percent increase in delivery vehicles in the world’s top 100 cities. At the same time, this increase in demand is expected to cause delivery-related carbon emissions to rise by nearly one-third.”
GM, however, is not the only company to spot this opportunity, making EV commercial vehicles an increasingly crowded endeavor. Rivian is actively working to produce delivery vans for Amazon, Ford has announced its forthcoming E-Transit, Canoo is jumping in with its own delivery box on wheels, and Lordstown Motors now claims to have more than 100,000 preorders for its commercial-market targeted Endurance EV pickup.
None of this is to say that BrightDrop won’t succeed.
The EP1 might be a success, but we’ll likely never know considering the fact that it’s largely a warehouse solution. The EV600 is another story.
GM is going all-in on its Ultium platform, and the company is certainly willing to share the technology with not only corporate side-hustles like BrightDrop but also other automotive manufacturers like Honda (and briefly Nikola before that). In fact, this looks to be yet another step toward GM leveraging its Ultium platform to become the coachbuilder destination of choice.
The BrightDrop EV600 delivery van has a storage capacity of 600 cu-ft, with a GVWR of less than 10,000 lbs.
GM likely won’t release a product that isn’t ready for primetime, so if the price is right, customers for the BrightDrop EV600 will come in droves. And if GM can guarantee a production timeline – something EV startups tend to struggle with – the EV delivery van business could soon turn into a two-horse race between GM and Ford.
(Images courtesy GM)
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