Amazon said Monday it plans to spend €1 billion, or $972 million, on electric vehicles for its European fleet.
The investment would increase the company’s fleet to at least 10,000 electric delivery vans by 2025, up from the 3,000 it already operates, and more than 1,500 long-haul electric trucks. It is part of Amazon’s goal to produce net-zero carbon emissions by 2040.
Amazon said it also expects to deliver more packages via e-cargo bikes and on foot using centrally-located delivery stations it is calling “micro-mobility hubs.” The company said it already operates such hubs in 20 major European cities, including London, Munich and Paris.
“In Europe’s traditionally dense cities, the hubs enable Amazon to operate new delivery methods … to bring packages to customers more sustainably,” said the company’s statement. Amazon expects to double the number of those hubs by the end of 2025.
Amazon (AMZN) said the investment will help drive innovation across the industry and encourage more public charging infrastructure, which will enable the broader transportation industry to more quickly reduce emissions.
“Our transportation network is one of the most challenging areas of our business to decarbonize, and to achieve net-zero carbon will require a substantial and sustained investment,” said Amazon CEO Andy Jassy. “Deploying thousands of electric vans, long-haul trucks and bikes will help us shift further away from traditional fossil fuels.”
Numerous automakers are ramping up production plans for electric delivery vehicles. One of them is electric truck upstart Rivian, in which Amazon was a major early investor. Rivian announced last month it had signed a “memorandum of understanding” with Mercedes to work together on production of electric vans in Europe.
Delivery vehicles, which run short routes on regular schedules, are relatively easy to fully recharge nightly at a company’s warehouse or depot.
But electric semitrucks are more of a challenge as they tend to be on long-distance routes that make efficient recharging difficult. Tesla (TSLA), which has planned to introduce an electric semi for years, is set to deliver its first one to Pepsi in December, CEO Elon Musk said last week.
– CNN’s Peter Valdes-Dapena contributed to this report