IKEA Canada going electric for last mile delivery
BURLINGON, Ontario – As past of its ongoing commitment to offer 100% zero-emission deliveries by 2025, IKEA Canada will partner with last mile delivery provider Second Closet to field a fleet of all-electric medium and heavy-duty urban delivery trucks, which are expected to enter service in this country’s three largest cities sometime this fall.
As part of the deal, Second Closet – a Toronto-based last mile delivery service that also boasts mattress e-tailer Endy as a client – has ordered 15 Lion6 heavy duty zero-emission trucks from Lion Electric, a Canadian electric vehicle producer based in Saint-Jérôme, Québec.
IKEA Canada and Second Closet have co-branded five trucks that will service last mile deliveries for its stores in the Montréal suburb of Boucherville, the Toronto suburb of Etobicoke and the Vancouver suburb of Richmond. In a statement, the retailer said the acquisition will help it achieve 20% of its zero emission deliver goals.
They remain committed to reaching its 2030 goal to become a circular and climate positive business by reducing greenhouse gas emissions more than its value chain emits while at the same time growing its business.
The company, the Canadian branch of the world’s largest home furnishings merchant, notes the global pandemic is moving consumer purchases online thereby increasing the demand for home deliveries – as well as the challenges this poses in terms of pollution, congestion and noise levels in Canadian cities.
In 2020, IKEA Canada completed over 500,000 home deliveries, a 30% increase from 2019. E-commerce sales for its last fiscal year accounted for 16.0% of revenue – up from the prior year’s 10.3% – about $370.7 million.
“Electrifying our last mile delivery service is an important step in our journey to become climate positive by 2030, especially with the rapid acceleration of our online business over the past year," IKEA Canada chief executive and sustainability officer Michael Ward said. “We are pleased to work with Second Closet and Lion Electric, two great Canadian innovators, to support us in meeting our customers with people and planet in mind.”
IKEA Canada has been among this country’s greenest employers for more than a decade and produces four times the energy it consumes, thanks to the renewable energy produced by its wind farms in Alberta and store rooftop solar panels. It also provides electric vehicle chargers at all 14 of its stores across Canada.
“A key area of focus for Second Closet is ensuring both the quality and sustainability of our processes. In addition to making this important investment in electric vehicles for our fleet, we have also retrofitted our facilities with highly energy-efficient lighting and have a circular supply chain for our corrugate boxes and other consumable materials,” said Mark Ang, CEO and co-founder of Second Closet.
“Lion is delighted to have been chosen as a key partner in IKEA Canada’s incredibly ambitious goal of decarbonizing home delivery by 2025. We believe this will be the first deployment of all-electric delivery trucks at scale in Canada, serving as an example for what’s possible with electrified fleets today and setting up IKEA Canada and Second Closet for larger deployments in the near future,” added Lion Electric CEO and founder Marc Bedard.
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