At CES 2021, General Motors announced it was launching a new business called BrightDrop, which 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. Its solutions are designed to help businesses lower costs, maximize productivity, improve employee safety and freight security, and support overall sustainability efforts.
“BrightDrop offers a smarter way to deliver goods and services,” said Mary Barra, GM Chairman and CEO. “We are building on our significant expertise in electrification, mobility applications, telematics, and fleet management, with a new one-stop-shop solution for commercial customers to move goods in a better, more sustainable way.”
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% by 2030, leading to a 36% 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.
BrightDrop was born out of GM’s Global Innovation organization and joins other recently launched startups from the organization such as OnStar Insurance, OnStar Guardian, and GM Defense. From a growth strategy standpoint, this new business will unlock areas of B2B as well as the expansion of the Ultium electric-vehicle platform and software and service opportunities.
“Families manage a few cars at a time, delivery companies manage thousands, even hundreds of thousands of vehicles,” added Barra. “They are on the front lines of efforts to reduce vehicle emissions and congestion as many countries around the world set limits on commercial delivery vehicles.”
To help meet this surge in demand, while reducing the impact on the planet, BrightDrop is developing an integrated set of solutions to help improve almost every aspect of first-to-last-mile delivery. A significant part of the launch were two first-to-last-mile products.
Travis Katz has joined BrightDrop as President and CEO, from venture capital firm Redpoint Ventures, to help further GM’s vision of zero crashes, zero emissions, and zero congestion.
The first product to market, the EP1, will be a propulsion-assisted, electric pallet developed to easily move goods over short distances, such as from a delivery vehicle to a customer’s front door. Available in early 2021, it can help reduce package touchpoints, costs, and physical strain on delivery drivers.
The EP1 features built-in electric hub motors with adjustable speed depending on the operator’s walking pace of up to 3 mph (5 km/h). Maneuverable in tight spaces, it carries and secures about 23 ft³ (650 L) of cargo and has a 200-lb (90-kg) capacity.
Perhaps the more significant of BrightDrop’s vehicle launches is the EV600, BrightDrop’s second product to market. The electric, light commercial vehicle is engineered for the delivery of goods and services over long ranges. It combines zero-emissions driving with a range of advanced safety and convenience features.
It is powered by GM’s new Ultium battery system, with an estimated range of up to 250 mi (402 km) on a full charge based on SAE J1634 measurements. The battery pack’s peak charge rate is up to 170 mi (274 km) of range per hour via 120-kW DC fast charging. The vehicle can carry over 600 ft³ (16,990 L) in its cargo area and is available at a GVWR of less than 10,000 lb (4535 kg). It has a security system with motion sensors to help keep cargo secure. Front sliding pocket doors, wide cabin walkways, a large auto-open cargo bulkhead door, and a 13.4-in full-color infotainment screen help to optimize driver efficiency.
GM is proud of what it says are standard segment-leading safety features, among them being front and rear park assist, automatic emergency braking, forward collision alert, following distance indicator, front pedestrian braking, lane keep assist with lane departure warning, automatic high beams, and an HD rear vision camera. Available safety and driver assistance features include rear cross-traffic braking, blind zone steering assist, reverse automatic braking, HD surround vision, rear pedestrian alert, and enhanced automatic emergency braking.
Supporting the vehicle solutions are software-enabled services. The new business will offer a cloud-based software platform that provides customers visibility and access to their BrightDrop products through both web and mobile interfaces. The built-in connectivity provides businesses with detailed data and insights that can help improve overall operations including route efficiency, asset utilization, and product upgrades. Drivers and couriers can use a connected mobile application for a variety of tasks.
Mobile asset management of the EP1 provides customers real-time features including location monitoring, battery status, remote commands to lock and unlock, and over-the-air updates of connected features. Fleet management of the EV600 gives fleet operators remote access, real-time location, battery and charging management, driver safety coaching and incident recording, remote diagnostics, safety alerts, and predictive maintenance insights, and over-the-air updates.
BrightDrop’s goal is to transform delivery and logistics for an all-electric future, according to Pam Fletcher, Vice President of Global Innovation. But how does this work in operation?
“It starts with a Brightdrop EP1, an electrically propelled palette that helps reduce the time and physical effort required for couriers to get goods from the delivery van to the front door,” said Fletcher. “Goods are consolidated and loaded into the EP1 at the warehouse based on their destination. The BrightDrop mobile asset management platform connects to the EP1s so key information like location, battery status, and more can be viewed remotely.”
EP1’s electric motor makes it easier for couriers to move around. The pallets are designed for optimal loading into delivery vehicles, and could we tethered together for larger drops, helping to reduce errors, secure packages, reduce the strain on drivers, and enable more efficient delivery.
GM says that early customer interest in the EV600 has been strong, with the first vehicles to be delivered by the end of this year and availability for more customers to order starting in early 2022.
FedEx Express has been an early adopter. With an EP1 pilot program under its belt, its couriers were able to effectively and safely handle 25% more packages per day with the EP1s. The partners have another pilot scheduled in one of the biggest urban centers of the U.S. this quarter. FedEx Express is also slated to be the first customer of the EV600, receiving their vehicles later this year.
“Our need for reliable, sustainable transportation has never been more important,” said Richard W. Smith, FedEx Express Regional President of the Americas and Executive Vice President of Global Support. “BrightDrop is a perfect example of the innovations we are adopting to transform our company as time-definite express transportation continues to grow. With this new suite of products, we will help improve the safety, security, and timeliness of FedEx Express deliveries, while reducing our environmental impact and protecting the well-being of our couriers.”
BrightDrop will initially serve customers in the U.S. and Canada with a customer support team to assist in supporting charging and infrastructure installation, advising on upfitting services, and retrofitting current fleet vehicles to integrate with its products. Support services will also assist with maintenance needs including securing parts and scheduling repairs. A BrightDrop dealer network will support vehicle sales and service.
GM promises that the EP1 and EV600 only the beginning. Plans call for BrightDrop to grow its product offerings to include a portfolio of integrated, zero-emissions products to help drive further efficiencies and address emerging customer needs. A number of concepts are being explored, such as a medium-distance solution that transports multiple EP1s, and a rapid load delivery vehicle concept designed to load and unload EP1s on and off the vehicle with ease, freeing up valuable curb space quickly.
“And just like [with] our consumer vehicles, we’re committed to helping make the transition to a smarter, all-electric future, as easy as possible,” added Fletcher. “To support these products and services, we will help customers set up charging infrastructure and provide access to parts, service, and more. BrightDrop is a single destination for delivery companies that want to make the transition to a more sustainable future. Moving goods, more efficiently to help reduce congestion and lower emissions helping electrify.”
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