General Motors has established a new division focused on providing commercial clients – beginning with FedEx – a comprehensive system of electric and connected solutions, representing the latest step in the company’s significant $27 billion investment to become a prominent electric vehicle manufacturer.

This new venture, known as BrightDrop, officially debuted on Tuesday during the virtual 2021 CES, and will initially feature two primary offerings: an electric van, the EV600, projected to have a range of 250 miles, and an electric, container-like carrier called the EP1. BrightDrop is also developing additional products and exploring several concepts, including a vehicle designed for medium-range transport of multiple EP1 pallets, as well as a concept for a fast-loading delivery vehicle, which was previewed on Tuesday.

However, this initiative extends beyond just vehicles. GM has also created a range of software applications to deliver a complete EV ecosystem for the commercial sector. The company is also building a dealer network to provide sales and service support, and intends to assist commercial customers in establishing charging infrastructure.

The cloud-based software platform, accessible via web or mobile app, will provide users with data to optimize operations, such as identifying the most efficient delivery routes and offering other fleet management capabilities, as stated by GM. Both the electric van and pallet will incorporate a variety of connected features intended to give customers enhanced methods for monitoring and controlling the vehicles, including vehicle location tracking, battery condition reporting, and remote locking/unlocking functions. 

BrightDrop represents the newest “startup” to emerge from the automaker’s Global Innovation group, an internal organization responsible for launching OnStar Insurance, OnStar Guardian, and GM Defense. Travis Katz, formerly an entrepreneur-in-residence at Redpoint Ventures, has been appointed as CEO and president of BrightDrop. 

The concept for BrightDrop originated within the Global Innovation team while they were analyzing the expansion of e-commerce and the increasing consumer demand for online delivery, a trend accelerated by the COVID-19 pandemic.

“As we investigated the demand and the difficulties associated with delivery and logistics, from the initial stage to the final few feet, we recognized the potential to utilize GM’s expertise in areas like electrification, mobility applications, telematics, and fleet management to help businesses transport goods and services more intelligently and sustainably,” explained Pam Fletcher, vice president of Global Innovation at General Motors, during a media conference prior to the announcement.

This opportunity is substantial, according to GM’s projections. The automaker estimates that the combined market value for parcel delivery, food delivery, and reverse logistics in the U.S. will exceed $850 billion by 2025. The demand for last-mile urban delivery is anticipated to increase by 78% by 2030, resulting in a 36% rise in delivery vehicles in the world’s 100 largest cities, as reported by the World Economic Forum. Simultaneously, this growth in demand is expected to lead to a nearly 33% increase in carbon emissions related to deliveries.

The EP1

The initial offering from this business division is the EP1, an electrically powered pallet designed with integrated propulsion to facilitate the movement of merchandise across limited areas. As an example, it could be utilized to transport items from a storage facility to a transport vehicle. This innovative pod is slated for release in early 2021.

The EP1 incorporates an integrated electric motor within its wheel hub, enabling travel at speeds reaching 3 miles per hour. The pod’s operational speed will synchronize with the operator’s walking speed.

GM states that the EP1 is engineered for operation in confined areas and features a cargo capacity of approximately 23 cubic feet, with the ability to carry a load of up to 200 pounds. The interior of the pod includes configurable shelving and secure, lockable compartments for controlled remote access to transported items.

A trial program evaluating the EP1 was recently concluded by FedEx. According to GM, FedEx Express delivery personnel experienced a 25% increase in the number of packages handled daily while utilizing the EP1s.

BrightDrop and FedEx Express are planning a further trial program to be conducted in a significant U.S. city during the current quarter.

The EV600

This electric delivery van is engineered and constructed utilizing GM’s Ultium platform – a core component of the company’s electric vehicle plan. Initial deliveries of these vans are scheduled for FedEx before the year’s end. BrightDrop anticipates opening orders for the EV600 to a wider range of customers starting in early 2022.

The vehicle is projected to achieve a range of approximately 250 miles on a full charge. GM states that its maximum charging speed will provide up to 170 miles of range per hour when using 120kW DC fast charging.

The interior offers substantial space, boasting 600 cubic feet for cargo, and includes a security system for protecting valuable goods. It features a 13.4-inch diagonal, full-color infotainment display, front sliding doors for easy access, spacious cabin aisles, and a sizable automatically-opening cargo area partition.

 This electric van is equipped as standard with sophisticated driver assistance technologies, similar to those found in GM’s retail vehicles, including front and rear parking assistance, automatic emergency braking, and lane keeping alerts. It also incorporates a forward collision warning system, following distance display, pedestrian braking for the front of the vehicle, automatic high beam control, and a high-definition rear vision camera.

Customers have the option to enhance the vehicle’s safety capabilities with additional features such as rear cross-traffic braking, blind-spot steering assistance, automatic braking when reversing, a comprehensive surround vision system, pedestrian detection for the rear, and improved automatic emergency braking functionality.