Electrification Is Not for Every Fleet

However, as the industry races toward an electric future, not every fleet should make the leap just yet. For fleet managers, directors, and other stakeholders, electrifying 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 the 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.
• Stakeholder Relationships: Strong relationships with stakeholders — 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, which 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:

1. 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), the benefits of EVs may be lost, as it’ll be tough to know the before and after.
2. 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.
3. 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, which often drives delays.
4. 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. Since the technology is still relatively young, options are 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
5. 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 complete powertrain conversion.
• Infrastructure Partnerships: Collaborating with landlords, utilities, or other charging solution providers (e.g., charging depots and 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 the technology matures for their use cases is prudent. 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 take a cautious approach, success lies in thoughtful planning and informed decision-making.

About the Author: Laolu Adeola is the owner of Leke Services. He is a management consultant and venture investor with 15 years of experience in mobility technology across automotive, energy storage, charging infrastructure, aerospace, batteries, manufacturing, and more. He helps fleet managers navigate the mobility energy transition. 

This article was authored and edited according to Automotive Fleet’s editorial standards and style. Opinions expressed may not reflect that of Automotive Fleet.