Delivery giant UPS has ordered hundreds of millions of euros worth of bespoke purpose-built electric commercial vehicles from UK startup Arrival, accelerating its transition to a zero-emissions fleet.

The initial order of 10,000 vehicles will be rolled out over 2020-2024 with the option for a further order of 10,000 vehicles

The initial 10,000 vehicles will be rolled out in the UK, Europe and North America over 2020-2024 with the option to purchase a further order of 10,000 vehicles.

The deal comes as UPS’ venture capital arm also announced an investment in Arrival of an undisclosed amount.

The announcement builds on ongoing work between the two firms. Arrival has been working with UPS for several years, having first announced a partnership in 2016.

Arrival’s unique Generation 2.0 electric vehicles offer UPS compelling commercial and environmental benefits to make a seamless and cost effective transition to a zero emissions fleet.

Denis Sverdlov, founder and CEO of Arrival, said: “UPS has been a strong strategic partner of Arrival, providing valuable insight to how electric delivery vans are used on the road and how they can be optimised for drivers. Together our teams have been creating bespoke electric vehicles, based on our flexible skateboard platforms, that meet the end-to-end needs of UPS from driving, loading/unloading, depot and back office operations. We are pleased that today’s investment and vehicle order creates even closer ties between our two companies.”

Juan Perez, chief information and engineering officer at UPS, said: “UPS continues to build an integrated fleet of electric vehicles, combined with innovative, large-scale fleet charging technology. As mega-trends like population growth, urban migration, and e-commerce continue to accelerate, we recognize the need to work with partners around the world to solve both road congestion and pollution challenges for our customers and the communities we serve. Electric vehicles form a cornerstone to our sustainable urban delivery strategies. Taking an active investment role in Arrival enables UPS to collaborate in the design and production of the world’s most advanced electric delivery vehicles.