From Flipkart To Zepto, Delivery Companies Are Taking The EV Route Towards India’s Sustainability Goals

“We not only want to become the top nation, but we also want to sustain at the top,” prime minister Narendra Modi said at the 4th Global Renewable Energy Investors’ Meet in Gandhinagar, Gujarat, last week.  

The Indian government has been quite vocal in the matters of sustainability, as Modi added that ‘green future’ and ‘net zero carbon’ are not just fancy terms but commitments. India has also been at the forefront, as it became the first G20 nation to fulfill the Paris Agreement nine years ahead of the 2030 deadline for adherence to Sustainable Development Goals (SDGs) where India aims to achieve net zero carbon and become a leading producer of renewable energy.  

Currently, India’s SDG score stands at 71 for 2023-24, significantly higher than the 57 reported in 2018 when the first India SDG Index was launched by the NITI Aayog, which handles the mandate for coordinating the adoption and monitoring of SDGs at both national and sub-national levels. 

The Role of Corporates 

To fulfil this ambitious target, the corporate sector in India plays a major role, as the country gears up to ramp up on green energy initiatives amidst a flurry of activities carried by companies every year that are potential contributors to increased carbon footprint, fuel consumption etc.  

According to a report by Futurespace, companies are gradually incorporating SDGs into their responsible business actions. Of the top 100 companies studied, 80 per cent of the companies have mapped their responsible business actions to SDGs. 

The delivery business sector is one of the most flourishing sectors in India. According to an independent report, in 2019, India’s business-to-consumer (B2C) e-commerce companies delivered approximately four million packages daily, up from three million daily shipments in the previous year. The number is said to have escalated to nearly 12 million shipments per day.  

While the festive season approaches, the number of daily deliveries is expected to surpass even more hence it becomes pertinent for the companies to contribute towards sustainability. Outlook Business talked to the major leaders in the delivery segment to find out how they are contributing towards sustainability and decreasing their overall use of non-renewable resources. 

Delivering Sustainability Electrically 

Nishant Gupta, head of sustainability at Flipkart Group stated that sustainability is a core part of how the company envisions the future of e-commerce. 

“A key part of this strategy is electrifying our logistics network, with a target of achieving 100 per cent EV-based last-mile deliveries by 2030. We have made remarkable progress, achieving a 70 per cent year-on-year growth in our last-mile deliveries through electric vehicles, and over 50 per cent of our grocery deliveries are now made using EVs. We are also actively expanding our charging infrastructure and are committed to sourcing 100 per cent renewable electricity for all our operations by 2030,” Nishant said.

While it is not a new fact that companies produce tonnes of hazardous waste every year from various units, Nishant shared that Flipkart diverted over 3,000 tonnes of non-hazardous waste from landfills and recycled over 67 million liters of wastewater across key facilities. 

As the EV wave grows faster, Zomato’s (which delivers 1.3 million orders a day) chief sustainability officer Anjalli Ravi Kumar previously told Outlook Business that the company has a special focus on sustainability and has also pledged to turn to 100 per cent EV fleet by 2030 and had 33,000+ active EV based delivery partners by November 2023. Moreover, the company’s website states that 20 per cent of deliveries are made on bicycles.  

Amazon India’s vice-president of categories, Saurabh Srivastava stated that the company is gearing up on increasing its EV fleet and has around 7,000 EV vehicles. The company has recently partnered with Gentari to focus on e-mobility solutions and targets to have around 10,000 EVs in its India delivery fleet by 2025. 

Not only delivery companies, but ride hailing companies are also taking the electric route, given the fact that the government has been keen on incentivizing EV buyers. 

Minimalistic Packaging 

According to the Sustainability Annual Trends report, over 2 billion tons of waste end up in landfills worldwide each year, much of it from e-commerce packaging like cardboard boxes, plastic, and Styrofoam 

Social media is flooded with customer woes regarding packaging. While some are concerned with the gala packaging for a small parcel, some are tired of having a clutter of quick commerce delivery bags, because the frequency of orders is more. Plastic packaging is another issue.  

To tackle this issue, companies are now choosing to go bag-less or have minimalistic packaging. A spokesperson at quick commerce unicorn Zepto told Outlook Business that the start-up's ‘No Bag Delivery’ initiative has saved over 90.1 million paper bags with 37 per cent of users independently opting for this eco-friendly choice without any prompts. 

“While we already use recycled packaging, this shift to bag-free deliveries marks a significant step in reducing our carbon footprint. We remain committed to further impact through eco-conscious choices and user participation,” they added.  

While Amazon already uses recycled packaging, it has introduced the concept of ‘Ship in Own Container (SIOC)’, which allows for minimal or no outer packaging on about 50 products. This means that products are shipped in their original manufacturer boxes with just a sticker for identification, reducing unnecessary packaging. 

Meanwhile, Shiprocket, e-commerce logistics and shipping software solutions unicorns which provides delivery services to thousands of SMBs across India, focusses on promoting eco-friendly packaging solutions, as it caters to businesses right from tier 1 to tier 3 and beyond cities.

“We're empowering small businesses to embrace sustainable methods, not just to help protect the environment but also to build stronger connections with today’s eco-conscious consumers who value brands that prioritize sustainability,” MD and CEO, Saahil Goel added.