The industry has seen a steady stream of EV (electric vehicle) startups introducing themselves over the past several months, many of which are focused on the commercial delivery van market. It has also seen more than a few of those startups gain some significant funding and publicity by being listed on the stock market via a special purpose acquisition company (SPAC). Most of those have featured EV products that carry higher price tags, serving specific commercial applications that require a higher battery range and higher payload capacities.
Focusing on a smaller Class 1 delivery van with a slightly shorter range and hauling capacity, Electric Last Mile Solutions (ELMS) has built its strategy into the company name. Based in the Detroit suburbs, ELMS is one of the latest EV companies to make some waves in the delivery van market. However, unlike many others, ELMS is planting its flag as the first provider of small, fully electric Class 1 vans in a relatively quiet segment of the market, “last-mile” delivery applications.
Leading the way into the market made ELMS appealing to investors of all types. After reviewing several options, the company’s leadership team decided to partner with Forum Merger III Corp., a SPAC company, to infuse significant capital into ELMS, list it on NASDAQ, and elevate its visibility. The SPAC merger also provided ELMS with a new board of directors, which includes executives from UPS, CDK Global, and Raymour & Flannigan Furniture Holdings.
“I look forward to working with such a seasoned and diverse board of directors as ELMS prepares to begin production of its first vehicle,” said ELMS Co-founder and CEO, James Taylor. “The directors’ collective experience in emerging mobility technologies, software and connected data, automotive distribution, and commercial delivery aligns with our future business strategy and will help us to execute our shared vision of transforming the last-mile delivery market with efficient and sustainable solutions.”
The company began its life when it acquired a facility of SF Motors, a Chinese startup that planned to enter the consumer passenger electric-vehicle market, and acquired a former Hummer manufacturing plant in Indiana. The new ELMS organization subsequently acquired that facility, and now operates as an independent company thanks to its SPAC merger.
The last-mile delivery market has seen significant growth over the past few years. Thanks to technology and the integration of e-commerce into everyday life, home-delivery service was already expanding throughout the world even before the COVID-19 pandemic. Over the past year, companies like UPS, FedEx, Amazon, and others have been under tremendous pressure to keep up with consumer demand for an ever-increasing amount of home-delivered goods.
ELMS recently announced it had entered into strategic partnerships with Jing-Jin Electric North America, LLC (JJE), an electric motor producer, and Contemporary Amperex Technology Co. Limited (CATL), a lithium-ion battery company, for the electric powertrain system in the ELMS launch vehicle, the Urban Delivery.
“Pairing ELMS’ vehicle integration engineering expertise with JJE and CATL’s technologies will help us to ensure that our last-mile fleet customers are provided with leading and reliable electric powertrain technologies to power their businesses,” said ELMS Chief Technology Officer, Kev Adjemian.
With a battery range of 150 mi (240 km), 170 ft3 (4800 L) of cargo capacity (35% more than the leading Class 1 vehicle), and a price point of about $25,000, the Urban Delivery stands apart from other commercial EVs in the bottom end of the market today. It also boasts a charging time of as little as 2 h.
About the size of a Ford Transit Connect, and resembling a shrunken-down Ford Econoline van, the Urban Delivery has a curb weight of 3329 lb (1510 kg) and a maximum payload of 2403 lb (1090 kg). It features advanced onboard and over-the-air telematics for easy fleet management. ELMS anticipates the Urban Delivery will also offer its customers a lower total cost of ownership compared to competing ICE vehicles, thanks to that low price point and reduced maintenance costs.
ELMS expects to begin production of the Urban Delivery in the second half of 2021.
