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The Impact Of Purpose-Built Cargo E-Bikes On The Socio-Economic Growth Of India

Globally, from Europe to Asian countries, E-bikes have emerged as one of the most preferred options for last-mile delivery owing to several benefits they offer. India too is starting to adopt purpose-built cargo e-bikes attributed to several key factors.

India is set to become a USD 5 trillion economy by 2025 and to achieve this goal we need to grow at 9 percent per annum*. The gig economy has been a key growth driver and we are seeing rapid adoption across e-commerce, e-grocery, food-tech, home services, logistics, etc. According to ASSOCHAM, about 15 million people are registered as freelance or gig workers across India**. The hyper-local delivery segment, in particular, has been at the forefront of hiring gig workers, with two-wheelers becoming their preferred mode of transportation.  However, most two-wheelers that are deployed at the last mile, are not designed or built to address the specific needs, owing to constraints such as storage capacity and rising fuel costs. Although sustainable, electric scooters have similar limitations of capacity and higher maintenance over time, not to mention a very high upfront cost of purchase. The need of the hour is a purpose-built cargo vehicle that benefits businesses and delivery agents by significantly improving cost to performance, which in turn accelerates socio-economic growth in the country.

 Globally, from Europe to Asian countries, E-bikes have emerged as one of the most preferred options for last-mile delivery owing to several benefits they offer. At the current rate of adoption, by 2030, over one million cargo e-bikes will be sold annually in Europe alone according to estimates. India too is starting to adopt purpose-built cargo e-bikes attributed to several key factors.

  1. Increased Productivity

Two factors that are extremely important in goods mobility are time and cost efficiency, without any compromise on quality and ease of operation. Purpose-built cargo e-bikes have a greater volumetric space as compared to a regular two-wheeler and can carry a load of 100 - 150 liters on average. E-bikes with pedal-assist options also ensure zero downtime and eliminate range anxiety(unlike E-scooters) by giving riders the option to switch from motor to assist, to only-pedal as per their need. Hence enabling more deliveries at a time, translating to extra money and increasing take-home of delivery agents.

Last-mile delivery accounts for 53% of the total logistics cost for e-commerce companies***. With more storage space on cargo e-bikes, logistics costs can be cut significantly. Additionally, they also have the least downtime, superior performance and efficiency. The only barrier is the prevailing prejudice against cycles, which will eventually give way to the adoption of cargo e-bikes in tier - 2 and tier - 3 cities in the future, helping the last mile delivery market to grow both rapidly and sustainably.

  1. Employability

The gig economy has played a huge role in driving employment and complementing income in recent years. It has transformed the ways of working by allowing greater flexibility across the ecosystem. Cargo e-bikes can prove to be a means to improve the overall employability rate in the country’s ever-growing last-mile delivery ecosystem that is powered by e-commerce and modern retail. As delivery agents earn based on the number of deliveries in a defined period of time, a purpose-built cargo e-bike could help them optimize their tasks with travel becoming more agile, cheaper and making more high-density trips. This not only helps them increase their earnings but also benefits the businesses they are working with.

  1. Cost efficiency

One of the biggest advantages of e-bikes is that they require minimal maintenance over time, without the burden of high fuel costs. With cargo e-bikes, maintenance costs are reduced anywhere between half to a third of an ICE two-wheeler or even an electric two-wheeler, and businesses save on fuel costs with every kilometer. Cargo e-bikes do not require licensing or any paperwork like motorized vehicles, which eliminates a lot of processes and documentation. Hence, running cargo e-cycles make an immense difference for businesses as it lowers the overall cost, saves time and reduces Scope 3 emissions in the long run.

  1. Sustainability

Studies show that two-thirds of pollution in India is caused by ICE two-wheelers, which is 75% - 80% of the vehicular traffic****.   Tailpipe emission from ICE vehicles is a major cause of accelerated climate change and global warming. While there is a global consensus on reducing vehicular pollution, several Indian organizations are making a conscious choice to switch to EVs to adopt sustainability and set zero-emissions standards. EVs are revolutionizing the green transportation space and cargo e-bikes fleets can significantly reduce overall carbon footprint. Cargo e-bikes can play a decisive role in India’s sustainable development goals.

  1. Safety

Cycles are one of the safest modes of transportation. Given the road infrastructure in India, purpose-built cargo e-bikes are more suitable for goods mobility than repurposing existing vehicles, as it’s convenient and safer for the rider. Cargo e-bikes have designated space for goods, which allows delivery personnel to carry heavier loads with ease. The lightweight frames are manufactured for easier navigation and better control on the roads.

The last-mile delivery ecosystem has seen a massive boom in recent years and in the generation of e-commerce, defined delivery times is the only promise that drives customers and organizations. Cargo e-bikes are emerging as a perfect alternative in an urban setting as a clean, nimble and highly-productive option. These advantages directly translate to higher dividends for every stakeholder of the ecosystem – monetarily, socially and also by improving the work conditions of the last mile personnel. 


Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house


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