As we stride forward with electric vehicles (EVs) into food delivery, there is an opportunity for companies to not only improve sustainability but also save costs significantly. With the need to adapt to market evolution, food delivery companies can achieve financial redemption and further green initiatives through collaboration with partners in EV adoption.
1. Lower Fuel Costs:
- Petrol/Diesel Vehicles: A typical food delivery vehicle running on petrol or diesel may consume ₹300 to ₹500 worth of fuel per day, covering 100-150 km.
- Electric Vehicles (EVs): In comparison, an electric vehicle covering the same distance may consume just ₹50 to ₹100 worth of electricity.
- Savings: This results in daily savings of ₹200 to ₹400 on fuel costs.
- Annual Savings: With 300 working days, the annual savings in fuel could range between ₹60,000 and ₹120,000.
2. Reduced Maintenance Costs:
- Internal Combustion Engine (ICE) Vehicles: For a petrol or diesel vehicle, the annual maintenance costs (including oil changes, filter replacements, etc.) could range from ₹10,000 to ₹15,000.
- Electric Vehicles (EVs): EVs generally have much lower maintenance needs, with annual costs for tire rotations, brake checks, and other minor repairs amounting to ₹2,000 to ₹5,000.
- Savings: The annual savings on maintenance could be between ₹8,000 and ₹10,000, contributing significantly to cost reduction.
3. Government Incentives:
- FAME II Scheme (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles): Under the FAME II scheme, electric two-wheelers can receive subsidies up to ₹15,000 per kWh of battery capacity. For a 2 kWh battery, the subsidy can be as high as ₹30,000.
- State Government Incentives: In addition to central government support, state governments may offer additional subsidies, typically ranging from ₹5,000 to ₹15,000, depending on the region.
- Tax Benefits: Potential reductions in road tax or registration fees may further save ₹2,000 to ₹5,000.
- Overall Incentive Savings: The total government incentives, including subsidies and tax benefits, could amount to ₹35,000 to ₹50,000 or more, depending on the specific vehicle and location.
Data
Below is one way to approach a quantitative comparison using some hypothetical numbers. In this example, we assume the following for a food delivery partner (for example, Swiggy or Zomato):
- Average Orders per Day: 10,000 orders
- Average Distance per Order: 4 km
- Total Distance per Day: 10,000 orders × 4 km = 40,000 km For fuel-powered delivery bikes (assuming petrol/diesel):
- Fuel Efficiency: 30 km per liter
- Fuel Consumed per Day: 40,000 km ÷ 30 km/l ≈ 1,333 liters
- Fuel Cost: Assume a fuel cost of Rs. 100 per liter
- Daily Fuel Expense: 1,333 liters × Rs. 100 ≈ Rs. 133,300 For electric vehicles (EVs):
- Energy Efficiency: Often given as the distance per kWh. Suppose an EV offers roughly 6.67 km per kWh (which is equivalent to consuming about 0.15 kWh per km)
- EV Energy Consumed per Day: 40,000 km × 0.15 kWh/km = 6,000 kWh
- Electricity Cost: Assume electricity costs Rs. 10 per kWh
- Daily Electricity Expense: 6,000 kWh × Rs. 10 = Rs. 60,000
Comparison (Fuel vs. EV):
- Fuel Bike Expense per Day: ≈ Rs. 133,300
- EV Expense per Day: ≈ Rs. 60,000
- Daily Savings by Switching to EVs: Rs. 133,300 − Rs. 60,000 = Rs. 73,300
Collaborative Strategies with Partners (Estimated Costs & Benefits in INR)
| Strategy | Scenario | Estimated Costs (INR) | Potential Benefits |
| Leasing Options | A food delivery company leases 100 electric two-wheelers. | – Leasing cost per EV:( ₹3,000 – ₹5,000) per month – Total cost for 100 EVs: ₹300,000 – ₹500,000 per month – Cost of purchasing 100 EVs upfront: ₹100,000 per EV = ₹10,000,000 | – Avoids ₹10,000,000 upfront investment – Frees up capital for other business needs – Avoids high maintenance costs |
| Charging Network Development | Partnering with a provider to install 5 fast-charging stations | – Cost per fast-charging station: ₹500,000 – ₹1,500,000 – Total cost for 5 stations: ₹2,500,000 – ₹7,500,000 – Estimated monthly electricity cost per station: ₹10,000 – Total electricity cost for 5 stations: ₹50,000 per month | – Reduced downtime for drivers – Faster turnaround times – Increased driver retention |
| Advanced Route Optimization Software | Subscribing to route optimization software for 100 drivers | – Subscription fee per driver: ₹500 – ₹1,500 per month – Total monthly cost for 100 drivers: ₹50,000 – ₹150,000 – Potential daily savings per driver: ₹50 – ₹100 – Total fuel savings per month (assuming 100 drivers, 25 | – Reduced fuel/electricity costs (₹125,000 – ₹250,000 per month) – Increased delivery efficiency (1-2 extra deliveries per driver per day) |
Case Study of Success
Swiggy:
In March 2025, Swiggy announced its intent to shift its delivery fleet to 100% electric vehicles by the year 2030. The company, which collaborates with around 540,000 delivery partners across India, has already started making this change by introducing the Swiggy XL EV fleet in October 2024. The fleet of 20 custom-built electric vehicles deals with bulk orders, making delivery more efficient and lowering the impact on the environment.
Domino’s Pizza:
Domino’s added 800 Chevrolet Bolt EVs to its fleet in 2023 and created the U.S.’ largest electric pizza delivery fleet. It is an initiative to enhance the efficiency of delivery and minimize harm to the environment.
Zomato:
Zomato went public with ambitions to make its deliveries 100% EV-based by 2033, looking to achieve net-zero emissions along its food ordering and delivery value chain.
Zepto:
In June 2024, Zepto collaborated with Battery Smart to tap into more than 1,000 battery-swapping stations in 30 cities. This partnership enables the swift deployment of 10,000 new EVs in Zepto’s delivery fleet for the 2024-25 financial year, improving operational efficiency and minimizing downtime.
