FedEx unit to test Ford’s electric vans for parcel delivery

FedEx Office will pilot Ford Motor Co’s (F.N) electric vans to pickup and deliver parcels in some regions, the unit of FedEx Corp (FDX.N) said on Tuesday, as part of the delivery giant’s move to cut its fleet’s tailpipe emissions.

FedEx, in collaboration with Ford Pro, will test 10 Ford E-Transit vans across its ‘FedEx SameDay City network’ in nine markets.

FedEx has set a target of 2040, the year by which it intends to transition its entire pickup and delivery fleet to all-electric zero tailpipe emission vehicles.

The company also has a partnership with Ford’s rival General Motors Co’s (GM.N) BrightDrop unit to add electric vans to its fleet.