Faced with a stated goal of achieving 100 per cent zero-emission home deliveries of its products, homewares giant IKEA has taken proactive steps to help its partners to come on board.
This week, IKEA bought four Volvo FL long-range electric trucks and announced a leasing model in partnership with CarBon Leasing designed to make operating the electric trucks as cost effective as the diesel truck alternative.
It’s the latest step in a low carbon push that started in 2019, with IKEA partnering with ANC Delivers, All Purpose Transport, and Kings Transport to implement home deliveries with electric vehicles across Australia.
IKEA Australia and New Zealand’s Zero Emissions Project Leader Alexandra Kelly says the investment in the new trucks would enable owner drivers contracted to ANC Delivers to move into the zero emission space.
“It’s not well known that most (98 per cent) of delivery vehicles are owned by small businesses or subcontractors, not delivery companies or retailers,” Kelly says.
“Electric vans and trucks remain significantly more expensive than diesel alternatives, which is a major challenge for drivers who operate with low margins.
“The Volvo electric trucks, designed for longer distances, will be leased to ANC Delivers contractors through CarBon Leasing.
“ANC Delivers has been a valued partner to IKEA in our transition to zero emissions, and their continued support with this new pilot removes the barrier of upfront vehicle costs for contractors.
“By offering a leasing package as an attractive alternative to diesel trucks, drivers can access electric vehicles without financial risk.”
Kelly says almost 84 per cent of truck orders for IKEA in October were completed in a zero emissions vehicle, nearly all of the orders in metro areas. The next push is to improve regional delivery rates.
“At IKEA, we embrace innovation and experimentation, with sustainability at the core of our decision making,” she says.
“With this new business model, we aim to prove that zero emission delivery is achievable today for retailers, with electric vehicles that can go the diesel distance.”
Under the new model being trialled IKEA owns the vehicles while CarBon Leasing takes care of their management and leasing.
CarBon Leasing Managing Director Scott Gillespie says it shows whats possible when “global ambition meets practical local solutions”.
“Our model removes the upfront cost barrier and supports drivers with everything from vehicle sourcing to charging and CO₂ reporting,” Gillespie says.
“Making zero-emissions delivery financially viable for small operators isn’t just good for business, it’s essential for Australia’s transition to cleaner transport,” he said.
Volvo’s long-range electric trucks are engineered to meet the demands of regional delivery, helping IKEA get closer to its customers while reducing emissions. The new Gen 3 Volvo trucks now have a range of up to 450 kilometres and can carry a payload of up to 5,500kg.
Volvo President and CEO Martin Merrick says its another positive step in the uptake of electric trucks in Australia.
“Our Australian electric truck fleet has now clocked up well over 1 million kilometres proving that electric is indeed a reality for transport operators looking to reduce emissions and noise in urban areas,” Merrick says.
Kelly says while the new trucks are another big step on IKEA’s zero emission journey, achieving the company’s full ambition is going to need more than just vehicles.
“This partnership with Volvo and CarBon is a bold step toward our goal of 100 per cent zero emissions deliveries, demonstrating that with collaboration and innovation, sustainable delivery is not just a future vision, it’s happening now.
“However, to truly scale zero emissions delivery into outer metro and regional areas, we must overcome one of the biggest remaining barriers: charging infrastructure.
“Addressing this challenge will require coordinated investment and action from government, industry, and the broader transport ecosystem.”
On that front, IKEA has contributed $4.5 million towards national charging infrastructure.