BrightDrop, the EV logistics company owned by General Motors, predicts it will hit $1 billion in revenue in 2023, making it one of the fastest companies in history to reach this milestone.
The announcement came ahead of a GM investor event, where the automaker was to outline its plan to hedge its massive investments in electric vehicle development amid a cooling economy. And it’s been just under two years since GM announced BrightDrop as part of its effort to corner the market for electric delivery vehicles.
Since then, the company has launched a modest slate of products, including the Zevo 600 electric van, an electric pallet for moving parcels and a suite of fleet management software. And it’s adding to that today, announcing a new subscription-based software platform for its customers. BrightDrop has also accumulated a number of notable clients, including FedEx, Hertz, Walmart, and Verizon.
The pandemic has fueled a home delivery boom, with experts predicting the number of delivery vehicles in the world’s 100 largest cities will increase by 36% over the next decade. More trucks equals more tailpipe pollution, at least 36% or 6 million tonnes, according to the World Economic Forum. Eliminating carbon emissions from this segment will go a long way to improving air quality and combating climate change.
But the business has a lot of fierce competition. In addition to BrightDrop, Ford, Rivian and Arrival are all working on their own electric vans for commercial customers. Amazon said it would buy vans from Rivian and Stellantis, while UPS is interested in Arrival. Ford is likely to iterate on its E-Transit minivan for more capability.
BrightDrop says it can see a clean track record on the horizon, confirming that it should generate up to $10 billion in revenue and hit 20% profit margins by the end of the decade.