BrightDrop, General Motors' Shiny New Delivery Business

Jason R. Sakurai
by Jason R. Sakurai

General Motors has rolled out BrightDrop, moving them further into the business of first-to-last-mile products, software, and services for delivery and logistics.

“BrightDrop offers a smarter way to deliver goods and services,” said Mary Barra, GM Chairman and CEO.

To lower costs, maximize productivity, improve safety, increase security, and support sustainability, Barra said, “We are building on our electrification expertise, mobility applications, telematics and fleet management, with a new one-stop-shop solution for commercial customers to move goods.”

BrightDrop is another brilliant idea from GM’s Global Innovation unit, along with a gaggle of other recent GM startups, such as OnStar Insurance, OnStar Guardian, and GM Defense. From a growth perspective, this is meant to attract investors who see GM as a tech firm, and less so an automaker, a part of what GM revealed during the Consumer Electronics Show.

By 2025, GM estimates the opportunity for parcel, food delivery, and reverse logistics in the U.S. will be over $850 billion. Citing the World Economic Forum, urban last-mile delivery demand by 2030 is expected to grow by 78 percent, a 36 percent increase in the world’s top 100 cities. This demand is expected to cause delivery-related carbon emissions to rise by nearly one-third.

To meet the demand and reduce the environmental impact, one of BrightDrop’s solutions is the EP1, an electric pallet. Reducing package touchpoints and costs, the EP1 runs at up to 3 mph, maneuvers in tight spaces, has 23 cubic feet of cargo-carrying capability, a 200-pound payload capacity, and lockable doors.

BrightDrop’s second big idea is the EV600, an electric light delivery vehicle that offers zero emissions, and safety and convenience features more commonly found in consumer EVs. The EV600 is powered by an Ultium battery system with a 250-mile range, with a peak charge rate of up to 170 miles of EV range per hour by 120kW DC fast charging. With over 600 cubic feet of cargo area, the EV600 is available with a GVWR of less than 10,000 pounds.

The first EV600s will be delivered by the end of this year, and FedEx Express will be the first recipient. “Our need for reliable, sustainable transportation has never been more important,” said Richard Smith, FedEx Express regional president of the Americas and executive vice president of global support. “BrightDrop is a perfect example of the innovations we are adopting to transform our company as time-definite express transportation continues to grow.” Maybe its early adoption of BrightDrop will cause investors to relax, because it’s FedEx. For a company that lives to deliver, BrightDrop couldn’t ask for a better partner.

[Images: BrightDrop]

Jason R. Sakurai
Jason R. Sakurai

With a father who owned a dealership, I literally grew up in the business. After college, I worked for GM, Nissan and Mazda, writing articles for automotive enthusiast magazines as a side gig. I discovered you could make a living selling ad space at Four Wheeler magazine, before I moved on to selling TV for the National Hot Rod Association. After that, I started Roadhouse, a marketing, advertising and PR firm dedicated to the automotive, outdoor/apparel, and entertainment industries. Through the years, I continued writing, shooting, and editing. It keep things interesting.

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  • Buickman Buickman on Jan 14, 2021

    there is a market for these units and a good opportunity for GM.

  • Conundrum Conundrum on Jan 18, 2021

    Good god. It's back to '50s in the UK when I was a kid. Electric milk floats, electric travelling fruit and veg vans with drop down sides to tour city residential areas on a schedule. Few people had cars, and who wanted to carry spuds a mile from the shopping main street? Most side streets were without bus service. Also, such services meant old people and the infirm only had to struggle out to the street to get groceries, not walk miles, use friends or call a taxi. When we came to Canada in '59 and lived in a rural area, big old Dodge vans were used to provide the same sort of service, house to house. The intervening years saw a actual reduction in food availability, because you HAD to drive to get supplies at a supermarket in town. Other even more remote areas had the mailman used as a grocery hauler, picking up orders for delivery. It all worked well enough. What I'm saying is, all this stuff has been done before, but few living have seen it and think it's all new. Of course local delivery should be by EVs, particularly in heavily populated areas. Gotta get your new shiny cardboard box full of amazon junk somehow.

  • Bd2 Lexus is just a higher trim package Toyota. ^^
  • Tassos ONLY consider CIvics or Corollas, in their segment. NO DAMNED Hyundais, Kias, Nissans or esp Mitsus. Not even a Pretend-BMW Mazda. They may look cute but they SUCK.I always recommend Corollas to friends of mine who are not auto enthusiasts, even tho I never owed one, and owned a Civic Hatch 5 speed 1992 for 25 years. MANY follow my advice and are VERY happy. ALmost all are women.friends who believe they are auto enthusiasts would not listen to me anyway, and would never buy a Toyota. They are damned fools, on both counts.
  • Tassos since Oct 2016 I drive a 2007 E320 Bluetec and since April 2017 also a 2008 E320 Bluetec.Now I am in my summer palace deep in the Eurozone until end October and drive the 2008.Changing the considerable oils (10 quarts synthetic) twice cost me 80 and 70 euros. Same changes in the US on the 2007 cost me $219 at the dealers and $120 at Firestone.Changing the air filter cost 30 Euros, with labor, and there are two such filters (engine and cabin), and changing the fuel filter only 50 euros, while in the US they asked for... $400. You can safely bet I declined and told them what to do with their gold-plated filter. And when I changed it in Europe, I looked at the old one and it was clean as a whistle.A set of Continentals tires, installed etc, 300 EurosI can't remember anything else for the 2008. For the 2007, a brand new set of manual rec'd tires at Discount Tire with free rotations for life used up the $500 allowance the dealer gave me when I bought it (tires only had 5000 miles left on them then)So, as you can see, I spent less than even if I owned a Lexus instead, and probably less than all these poor devils here that brag about their alleged low cost Datsun-Mitsus and Hyundai-Kias.And that's THETRUTHABOUTCARS. My Cars,
  • NJRide These are the Q1 Luxury division salesAudi 44,226Acura 30,373BMW 84,475Genesis 14,777Mercedes 66,000Lexus 78,471Infiniti 13,904Volvo 30,000*Tesla (maybe not luxury but relevant): 125,000?Lincoln 24,894Cadillac 35,451So Cadillac is now stuck as a second-tier player with names like Volvo. Even German 3rd wheel Audi is outselling them. Where to gain sales?Surprisingly a decline of Tesla could boost Cadillac EVs. Tesla sort of is now in the old Buick-Mercury upper middle of the market. If lets say the market stays the same, but another 15-20% leave Tesla I could see some going for a Caddy EV or hybrid, but is the division ready to meet them?In terms of the mainstream luxury brands, Lexus is probably a better benchmark than BMW. Lexus is basically doing a modern interpretation of what Cadillac/upscale Olds/Buick used to completely dominate. But Lexus' only downfall is the lack of emotion, something Cadillac at least used to be good at. The Escalade still has far more styling and brand ID than most of Lexus. So match Lexus' quality but out-do them on comfort and styling. Yes a lot of Lexus buyers may be Toyota or import loyal but there are a lot who are former GM buyers who would "come home" for a better product.In fact, that by and large is the Big 3's problem. In the 80s and 90s they would try to win back "import intenders" and this at least slowed the market share erosion. I feel like around 2000 they gave this up and resorted to a ton of gimmicks before the bankruptcies. So they have dropped from 66% to 37% of the market in a quarter century. Sure they have scaled down their presence and for the last 14 years preserved profit. But in the largest, most prosperous market in the world they are not leading. I mean who would think the Koreans could take almost 10% of the market? But they did because they built and structured products people wanted. (I also think the excess reliance on overseas assembly by the Big 3 hurts them vs more import brands building in US). But the domestics should really be at 60% of their home market and the fact that they are not speaks volumes. Cadillac should not be losing 2-1 to Lexus and BMW.
  • Tassos Not my favorite Eldorados. Too much cowbell (fins), the gauges look poor for such an expensive car, the interior has too many shiny bits but does not scream "flagship luxury", and the white on red leather or whatever is rather loud for this car, while it might work in a Corvette. But do not despair, a couple more years and the exterior designs (at least) will sober up, the cowbells will be more discreet and the long, low and wide 60s designs are not far away. If only the interiors would be fit for the price point, and especially a few acres of real wood that also looked real.
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