E-commerce enabler, Payo, is now using electric vehicle (EV) cargo tricycles for deliveries as part of greening the local logistics sector.
Payo provides e-commerce solutions to domestic and international brands and makes use of sister company, Agila Logistics and Delivery Express' (Agila) fleet to reduce carbon emissions.
“We initially deployed three electric vehicle tricycles for our pilot run. Our goal is to transform at least 50 percent of Agila’s fleet to electric vehicles by the end of 2024, and 90 percent soon after,” Payo Managing Director June Cloma announced Wednesday, July 12.
Before, Agila's fleet was composed of traditional motorcycles and vans running on fossil fuels. However, in 2022, Payo started sustainable measures to promote environmentally-friendly logistics solutions.
These include the integration of bike deliveries and switching to biodegradable delivery pouches.
Now, Payo is procuring electric vehicles to replace Agila’s fossil fuel-powered fleet.
"We are taking an active part in the revolution of being greener,” said Cloma.
“Shifting to electric vehicles will make our deliveries cleaner as it reduces carbon emissions. While it may cost more to introduce and maintain sustainable policies and requirements, this as an investment in our future as a company and as a community,” he elaborated.
Significantly, the Philippines has a large potential to become greener along with the rest of the region, according to Southeast Asia’s Green Economy 2023 Report by Bain & Company, Temasek, GenZero, and Amazon Web Services.
However, key challenges hinder the country's growth.
These include inadequate charging infrastructure for electric vehicles, lack of a national sector roadmap as well as carbon emissions-centric policies and regulations.
While there is still a lot of work to be done, Payo is doing its part and hopes to build a more sustainable logistics landscape by replacing its last mile delivery vehicles for the long term, Cloma stressed.
Being sustainable is a long-term investment that benefits both companies and the environment, Payo’s Founder and CEO Liron Gross underscored.
“Our vision for sustainability is not for our company alone, but for the rest of the community,” she reiterated.
“Being sustainable goes beyond having a zero-plastic office and separating your trash. It’s about innovation, finding better ways to do the same things. Hopefully, our collective micro efforts will have a macro impact on the logistics sector and more, Liro said.