The week of September 9 marked World EV Day, prompting discussions about the expansion of electric vehicles (EVs) in Prosus’ e-commerce operations across Latin America, Europe, and India.
A recent visit to Delhi highlighted the impact of EV adoption. A taxi driver shared that his operating costs had dropped from 15 rupees per kilometre for fuel to just 1 rupee per kilometre for electricity. He drives about 250 kilometres daily, well within his car’s 350-kilometer range. The driver said charging is straightforward, typically done overnight or at fast-charging stations found through an app. Subsidies from the Delhi government and affordable loans made owning an EV possible for him, with reduced fuel costs covering loan repayments so that he will own the vehicle outright in three years.
According to Gerald Naber, Global Sustainability Principal at Prosus Group: “What stood out the most to me, was the pride in his voice as he described his car—viewing it not just as a vehicle, but as an investment in his future. It was a reminder of how EVs are not only transforming transportation but also enabling individuals to take meaningful strides toward a better, more sustainable tomorrow.”
This example demonstrates how EV technology is affecting mobility and last-mile delivery sectors by offering gig workers opportunities for higher earnings and greater sustainability. Drivers can build livelihoods while reducing their environmental footprint.
Electric vehicles provide several advantages:
– Over its lifetime, a 2024 electric SUV emits 71% less than its fuel-powered equivalent in the US.
– In Indonesia, electric scooters have up to 35% lower lifecycle emissions.
– Electrifying all last-mile deliveries in India could cut Delhi’s air pollution by 25%. In major US cities, widespread adoption could prevent thousands of premature deaths and yield billions in health benefits.
– In India and Ghana, operating costs for EVs are significantly lower than traditional vehicles.
– Delivery drivers switching to EVs in India could see yearly earnings rise by up to 18%.
The economic and environmental benefits are notable given projected growth in e-commerce and last-mile delivery markets worldwide. For example:
Africa’s last-mile delivery market is expected to increase from $5.1 billion in 2024 to $8.9 billion by 2031; Indian e-commerce may nearly triple from $125 billion this year to $345 billion by 2030; Latin America’s market could more than triple between now and 2033.
However, economic transitions bring risks for businesses. Some companies have faced insolvency during this shift: Ola Electric encountered financial trouble due to unpaid dues; Hero Electric entered insolvency proceedings; BluSmart filed for insolvency along with its leasing partner Gensol. European firms like Swedish battery startup Northvolt have also struggled amid rising capital costs and supply chain disruptions.
Despite these setbacks, global momentum continues: over one-fifth of new cars sold worldwide this year were electric—raising global stock above 60 million units. In India alone, two-wheelers reached a five percent share of annual sales while three-wheelers achieved over half market penetration.
Government support is increasing with incentives aimed at accelerating adoption. India recently announced a two-year scheme allocating $1.3 billion toward millions of new electric vehicles across categories including buses and three-wheelers; South Africa offers tax deductions on investments related to EV production; Brazil’s MOVER program has driven automaker investments exceeding $26 billion.
Scaling these technologies requires substantial financing—India needs nearly $300 billion by decade’s end just for renewable energy expansion—and banks remain hesitant due to perceived risks associated with unproven business models or technology reliability. To address this challenge, Prosus facilitated a roundtable where stakeholders agreed on forming a consortium aimed at redistributing risk among manufacturers (OEMs), fleet operators, demand platforms, and financiers.
Operational adaptation remains crucial as well since logistics infrastructure must evolve alongside battery technology improvements such as faster charging times or expanded networks of charging stations. Companies like Takealot in South Africa have deployed large commercial fleets powered primarily off-grid using solar panels—a move that cut operational costs by one-quarter after optimizing routes and investing heavily in training and infrastructure upgrades.
In Brazil, iFood has integrated various zero-emission vehicles into its delivery network while developing algorithms that reduce distances traveled per order—a change credited with lowering emissions per order by twelve percent so far.
First-mile logistics face unique challenges due to longer distances but initiatives like ‘green corridors’ equipped with charging infrastructure show promise for industry-wide electrification efforts.
Gerald Naber concluded: “No, it is not just a matter of time, it is a matter of coming together and making it the new normal.”
