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Are Electric Vans Now A Viable Option For Couriers?

As one of the UK’s leading providers of courier and van courier insurance, we keep a close eye on what’s happening in the industry.  In recent years, the pace of change has been faster than a Tesco Whoosh delivery, especially when it comes to electric vans.  

Battery electric vehicles (BEVs) have been growing in popularity since the VW Dieselgate scandal of 2015.  This opened the eyes of the public to the environmental impact of diesels, creating a backlash against purchasing them and forcing some delivery firms to consider alternative fuels to protect their brand’s reputations.  The move to BEV cars has been remarkably swift.  In 2016, EVs accounted for just 0.4% of new car registrations, while in 2024 that figure had reached 19.6% according to the Society of Motor Manufacturers and Traders (SMMT).  Much of this growth has come from private motorists, but company fleet owners have also played a significant part, attracted by the promise of cost savings and increased reliability.

Electric Vans: A Slow Start

Couriers have been slower to make the switch.  Of the estimated 4.4 million vans in the UK, at the end of 2024, only 55,000 electric vans were on our roads, just 1.7% of the total fleet.  While some big delivery firms have started the transition to BEV, the Royal Mail has a fleet of over 5,000 vans and plans to have 7,000 by the end of the year, while DPD has 1,000, most couriers have stuck with diesels.  The reasons for this are complex and include cost, range, and payload.  But with every courier needing to cut costs, retain customers, the easy availability of electric van insurance, and a ban on selling new diesel vans coming into force in 2035, all van couriers need to start thinking about making the switch.

So, what’s stopping courier drivers and courier firms from making the move to BEV?  In this article, we’ll look at the advantages and disadvantages of electric vans for couriers and ask if the likes of the new Flynt electric van could make mass adoption happen.

We hope this article will prove useful, but if you’d like some courier insurance help or a courier insurance quote, then please get in touch.  You can call us on 01782 308 372 or contact us here, and one of the team will come back to you as soon as possible. 

What are the advantages of electric vans for couriers?

For couriers, the advantages of BEV vans are threefold: reduced costs, increased reliability, and improved brand reputation.  Let’s look at these in turn:

  • Reduced fuel costs – early advocates of BEV pointed out how much cheaper they would be to run compared to diesels.  This has turned out to be true.  The cost per mile of an electric van is around 8.5 pence per mile, while diesel vans cost 19.29 per mile, a 77% saving on fuel costs according to Gov.co.uk.  Using public charging points is more expensive, but the cost of installing business charging points has fallen significantly and can now be as little as £1,000 ex VAT and can ensure vans are ready to go in the morning thanks to cheaper overnight charging

  • Reduced maintenance costs – BEV drivetrains are mechanically much simpler, reducing service needs and the likelihood of them breaking down.  A Fleet News report of 2024 showed that maintenance and repair costs are typically 40% lower than for diesels.  Spending less time off the road also means savings in terms of business capacity and disruption

  • Reduced congestion charge costs – BEVs are (currently) exempt from things like London’s Congestion Charge, a saving of between £15 and £27.50 per day, depending on whether they enter the Ultra Low Emission Zone or not

  • Government incentives – electric vans in the UK benefit from generous incentives, and buyers can claim £2,500 on small vans of up to 2,500kg and £5,000 on larger vans of up to 4,250kg

  • Urban route suitability – BEV vans are perfect for stop-start city driving.  Regenerative braking recovers energy in heavy traffic, and instant electric torque is ideal for parcel carrying.  Most courier routes are short, well under 100 miles, matching the range of modern electric vans. Courier trials suggest BEVs can handle typical inner-city runs easily, which is why firms like Royal Mail and DPD have gone for vans like the Nissan e-NV200 with its range of around 180 miles

  • Environmental and branding benefits – BEV vans produce no emissions, improving urban air quality.  This matters as a Stuart report revealed that 27% of shoppers say they would pay extra for eco-friendly deliveries.  Environmentally friendliness is a key issue for brands, and being able to demonstrate this through their delivery service is something more and more businesses are looking to demonstrate.  So, go green, and you could win more business. Cleaner van fleets can also avoid future penalties or scrappage costs as emission rules tighten

What are the disadvantages of electric vans for couriers?

There’s no such thing as a free lunch, and while electric vans for couriers can bring significant advantages, there are some major disadvantages:

  • Range – many of the current crop of electric vans have shorter real-world ranges than diesels.  Van fleet operators have reported that some electric models could not complete a full shift’s mileage without recharging, and even fast charging points add precious minutes to an already hectic day.  A Ford Transit will do around 300 miles on a tank of diesel, whereas a Transit E-Custom will struggle to do 180 miles.  With heavier loads, the situation can get even worse.  One courier business manager was reported as saying they only use BEV for drivers “who work within 50 miles” adding that longer routes “would be hard to roll out” without greater range

  • Lack of charging points – while there are now far more electric charging points than filling stations in the UK, 75,000 versus 8,500 (ZapMap), distribution is skewed.  44% are in the South-East/London, while only 15% are in rural areas.  Public charging points are also relatively expensive at up to 89p per kWh (home chargers are between 32p-48p).  As many couriers don’t operate from a single depot and must rely on en route charging, this is a costly hassle

  • Higher van costs – whether couriers are buying or leasing their vans, BEV vans cost significantly more.  A diesel Ford Transit Custom starts at around £32,350, whereas the electric equivalent is £43,000.  This is a significant jump, and while the lifetime value savings may make it worthwhile, it’s a barrier for small firms, and there are also anxieties around depreciation and battery life

  • Limited model range – compared to diesel vans, the selection of electric vans on offer is still small.  Many couriers find no EV option meets their exact size, load or towing needs (e.g. very large bodies or heavy payloads), and while manufacturers are introducing more models, availability and delivery lead times often lag far behind demand

  • Operational constraints – charging adds logistical complexity.  Vehicles may need mid-day charges if routes are long/payloads heavy, public chargers can be busy, causing delays, and cold weather can reduce EV ranges by as much as 30%

Are electric vans now a viable option for couriers?

Our feeling on this is yes and no.  If you have deep pockets and green credentials are important to your delivery business, then yes.  Firms like Royal Mail can transition to BEV while relying on their diesel fleet.  Small firms don’t have this luxury, and making the move is much harder.   It is a transition that all firms will have to make, however.  Diesel bans, congestion charging, increased duty and tax on diesels, and growing demand from the public for cleaner couriers makes the switch inevitable.  
 
What will ease this transition for all is the number of new models that are coming to the UK.  Flynt is launching a new 3.5-tonne electric van in Europe next year, which they claim has a range of 310 miles from its 100kWh battery, and it its payload capacity of 8.7 – 16.5 cubic metres and a maximum payload of 1,630 kilos is more than enough for most couriers.  Not only are vans like these going to make it easier for couriers to move to BEV, but they also show how the market is moving and how switching will come for all. 

Like some courier insurance help?

If you’d like some courier insurance help or a courier insurance quote, then please get in touch.  You can call us on 01782 308 372 or contact us here, and one of the team will come back to you as soon as possible.

About The Author

Stephen Ashmore is the Managing Director of JMG Sandbach and a courier insurance specialist with over 25 years of industry experience.