HomeKnowledge HubEnergy & SustainabilityIKEA Australia Drives the Switch to Electric Vehicles for Home Delivery

IKEA Australia Drives the Switch to Electric Vehicles for Home Delivery

Earlier this year, IKEA Australia committed to use only electric vehicles for all operations and services by 2025, with the roll out starting immediately. In partnership with transport service providers, the roll out has seen the uptake of electric vehicles (EV) for home deliveries and assembly services.

The move was part of the business’ goal to work with local partners and customers to be circular and climate Positive. IKEA Australia is currently the only market in the world to have assembly services completed using electric vehicles.

Ingka Group is a member of The Climate Group’s EV100 initiative for accelerating the global shift to electric vehicles, and as part of its global EV strategy, by 2020 one quarter of all customer fulfilment vehicles will be electric, with the transition to electric vehicles complete by 2025. IKEA China has already achieved 100% EV deliveries in Shanghai.

In Australia, there are currently seven IKEA EVs on the road, which are owned and operated by delivery service partners based in Sydney, Melbourne and Perth. Six of the EV fleet are currently responsible for last mile delivery.

Jan Gardberg, IKEA Australia Country Manager said the switch to electric vehicles forms just one part of the many initiatives and ambitions outlined in the retailer’s 2030 People and Planet Positive Strategy.

“At IKEA we want to drive positive change. That’s why we are committed to achieving zero emissions from delivery vehicles and ensuring 100% of our fleet will be electric vehicles. Our end goal is to have a positive impact on people and the planet.”

Jon Dee, Sustainability expert and RE100 Representative said “Australia is really lagging behind other countries when it comes to electric vehicles. With this new strategy to go electric only with delivery vehicles by 2025, IKEA is telling the rest of the corporate sector if we can do it, there’s no reason why you can’t do it as well.”

A trial of the first of these EVs, conducted since April 2018 across IKEA stores in Victoria, saw a total of 3,500 deliveries to IKEA customers made using electric trucks. IKEA Australia aims to reach a 5% EV roll out in conjunction with its partners in FY19, 10% in FY20 and 100% in FY25. Based on the manufacturers’ specifications, one truck is estimated to save 36.3 metric tonnes of CO2 annually.

Since the rollout of electric vehicles for operations and services began in March, nearly 10% of product orders from the IKEA Customer Distribution Centre in Sydney are delivered to customers by electric vehicle. Nationally, 3.5% of all volume deliveries from across the country are made using electric trucks.

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