The push toward fleet electrification is undeniable, driven by declining battery costs, regulatory mandates, and the promise of lower total cost of ownership (TCO).
As the industry races toward an electric future, not every fleet should make the leap, yet. For fleet managers, directors and other stakeholders, the decision to electrify must be grounded in operational realities, financial considerations, and strategic foresight. Electrification is not a one-size-fits-all solution—it works brilliantly for some but remains impractical for others.
Here's how to evaluate whether it’s right for your fleet.
When electrification works
Electrification can yield significant benefits when certain foundational elements are in place. Fleets with predictable duty cycles, strong preventive maintenance practices, and data-driven optimization strategies are better positioned to succeed with electric vehicles (EVs). These fleets can leverage EVs’ lower operating costs and reduced emissions while avoiding common pitfalls.
- Operational discipline: EVs thrive in structured environments where routes are predictable, vehicles are charged consistently, and drivers adhere to operational best practices.
- The right use case: Strategic approaches that focus on advantages of specific models or technology capabilities provide the best chance for success. For example, last-mile delivery fleets using purpose-built EVs like Rivian vans have seen improved efficiency and driver satisfaction due to vehicle design tailored to their specific needs.
- Strong relationships with stakeholders—such as customers, landlords, and utilities—can unlock opportunities like destination charging at customer facilities or shared infrastructure investments. Fleets that work closely with partners can reduce costs and enhance operational efficiency.
- Long-term planning: Fleets with a forward-looking strategy spanning 5–10 years are better equipped to navigate the complexities of electrification. This includes planning for infrastructure upgrades and aligning procurement decisions with long-term business goals.
When electrification falls short
Despite its promise, electrification isn't suitable for every fleet—at least not yet. Several factors can make the transition challenging or impractical:
- Poor fleet fundamentals: There are things every fleet manager should be doing to get the most out of their operations. These include preventive maintenance, standard operating processes, residual value management, and leveraging telematics data to drive continuous improvement. Without having a good handle on fundamental fleet performance indicators like vehicle availability (or uptime) or TCO (e.g., per mile, lifetime value) among others, the benefits of EVs may be lost as it’ll be tough to know the before and after.
- Poor access to capital: The upfront investment in EVs and charging infrastructure remains a significant barrier. While government incentives are available, they are not guaranteed and may not fully offset the costs. Innovative private financing options (e.g., EV as a service) have emerged to address this, but often don’t work well for very small fleets or those without reliable revenue forecasts.
- Infrastructure limitations: Charging infrastructure development is complicated, time-consuming and costly. More so for fleets without dedicated facilities. Retrofitting existing sites often requires coordination with utilities and landlords—a process that often drives delays.
- Technology constraints: Fleets with heavy-duty vehicles, heavy payloads, or long-distance routes may find current EV technology insufficient due to limited range and payload capacity due to the technology still being relatively young and options not ubiquitous for all applications yet. In such cases, alternative solutions like hybrid systems and other low emission fuels may be more viable to drive down costs and emissions
- Market immaturity: The EV market is still evolving, with many manufacturers focusing on light-duty vehicles while medium- and heavy-duty options remain limited. Additionally, the recent bankruptcy of startups like Nikola or Canoo highlights the risks of relying on less-established OEMs even when they provide the most innovative solutions
Exploring alternatives
For fleets not ready to fully electrify, incremental solutions can still deliver benefits:
- Hybrid models: Combining electric components with existing powertrains allows fleets to reduce costs and emissions while maintaining operational flexibility. Technologies like Range Energy’s battery-powered trailers can improve fuel economy without requiring a full powertrain conversion.
- Infrastructure partnerships: Collaborating with landlords, utilities or other charging solution providers (e.g., charging depots, other fleets) to share infrastructure costs can make charging more accessible and affordable.
The bottom line
Electrification is a transformative opportunity but also a complex undertaking. Fleet managers must weigh the benefits against operational realities and financial constraints. For some managers, getting the fundamentals right or waiting until technology matures for their use cases is the prudent choice; for others, embracing electrification now could unlock immediate gains in efficiency and sustainability.
Electrification isn’t for everyone—yet—but every fleet should start preparing today by assessing its potential and building a roadmap for the future. Whether you’re ready to dive in or taking a cautious approach, success lies in thoughtful planning and informed decision-making.
