Why the last mile could be the ideal route to electric vans
Last-mile delivery is the final and often most expensive stage of the supply chain, with rising costs putting increasing pressure on fleet margins.
A DS Smith survey of 550 decision-makers found that 84% of e-commerce businesses across the UK and Europe reported rising last-mile delivery costs in 2024, while 39% experienced double-digit increases.
For fleet operators looking to control costs while meeting net zero commitments, the final leg of the journey is therefore coming under greater scrutiny. According to Simon Ridley, Managing Director at Dawsongroup vans, it is also where electric vans can make particularly strong commercial sense.
“The last mile ticks almost every box you’d want for an electric vehicle. Routes are repeated, mileage is predictable, and the majority vans come home to the same depot every night. That’s a very different proposition to long-haul work, where range and charging logistics are far harder to plan around.”
With predictable routes, frequent stops and regular depot returns, last-mile delivery provides several characteristics that can help overcome some of the traditional concerns surrounding electric van adoption.
Predictable routes make electric van range easier to manage
Unlike long-distance haulage, last-mile delivery typically involves repeat routes, familiar streets and broadly consistent daily mileage. This makes it easier for fleet managers to assess the actual range required rather than relying on worst-case assumptions.
Ridley says this predictability can remove much of the uncertainty associated with electric vans.
“When a route is the same one a driver has done a hundred times before, there’s very little left to guess at. Fleet managers can look at exactly what a route demands, specifying a van that comfortably covers it, with margin to spare.”
The ability to match vehicle specification to actual duty cycles is particularly important as electric van ranges vary according to factors including payload, weather, driving conditions and vehicle configuration.
Stop-start driving can benefit electric vans
Urban last-mile delivery involves frequent junctions, roundabouts, traffic and deliveries, creating a stop-start driving cycle that can be challenging for conventional diesel vans.
For electric vans, however, regenerative braking can recover energy when the vehicle slows down, feeding some of it back into the battery rather than losing it as heat through conventional braking.
“Stop-start city driving is exactly the environment where electric vans come into their own,” says Ridley. “Every time the van slows for a junction or a delivery, some of that energy goes straight back into the battery. It’s the opposite of the fuel economy penalty you’d see with a diesel engine doing the same job.”
The effect is particularly relevant to fleets undertaking high numbers of urban deliveries each day, where repeated acceleration and braking form a significant part of the vehicle’s operating cycle.
Electric vans can simplify clean air zone compliance
Urban access restrictions are another consideration for last-mile fleets. London’s Ultra Low Emission Zone operates 24 hours a day, seven days a week, while several other UK cities operate Clean Air Zones with charges for non-compliant vehicles.
For operators regularly delivering into urban areas, avoiding these charges can form an important part of the total cost of operating an electric van.
“For fleets running into city centres regularly, these charges add up fast,” advises Ridley. “An electric van avoids them completely, and for last-mile operators, that’s often where the numbers really start to work.”
As clean air and emissions restrictions continue to influence urban transport policy, zero-emission vans can also provide greater certainty for fleets planning future city-centre operations.
Government support can reduce the upfront cost
The upfront purchase price of an electric van remains a consideration for fleet operators, although government support can help reduce the initial cost.
The plug-in van grant currently provides discounts of up to £2,500 for small vans and £5,000 for larger vans, with the discount applied automatically at the point of sale.
Electric van registrations also continue to grow. The Society of Motor Manufacturers and Traders (SMMT) reported a 74.1% year-on-year increase in electric van registrations in July, giving battery electric vans a record 14.7% market share.
Despite this growth, the market remains below the Government’s 24% zero-emission vehicle mandate target for vans in 2026.
“The grant takes a real bite out of the price difference,” says Ridley. “And for businesses that would rather avoid the upfront cost altogether, long-term rental removes that barrier completely while still delivering the running cost and access benefits.”
Start with the routes that make the strongest case
Fleet managers do not necessarily need to electrify an entire van operation in one step. Identifying routes that already suit electric vehicles can provide a lower-risk starting point for transition.
Routes with predictable mileage, regular depot returns and reliable access to overnight charging are obvious candidates. Urban delivery work can also strengthen the business case where clean air zone charges would otherwise apply.
“The fleets getting this right aren’t trying to convert everything at once,” Ridley concludes. “They’re starting with the routes where electric vans make obvious sense, building confidence, and expanding from there.”
For last-mile operators facing rising delivery costs and increasing pressure to reduce emissions, the combination of predictable routes, regenerative braking, depot-based charging and urban access advantages means electric vans are becoming increasingly relevant to the commercial case for fleet electrification.
