The vehicles will be integrated into Amazon Relay, the company's network for logistics between warehouses, sorting centers, and delivery stations. The 75 manually driven electric trucks are estimated to cover nearly 500,000 Swedish miles, or three million English miles, annually.
In addition to the vehicles and charging infrastructure, Einride's software, Saga AI, will be used for route optimization and vehicle charging planning.
The exact financial terms of the deal have not been made public. According to Einride's Head of Communications, Christina Zander, a deployment of this scale typically generates annual recurring revenue in the tens of millions of dollars, equivalent to hundreds of millions of Swedish kronor.
Working with Amazon is a further strong confirmation of Einride’s technology and strategic vision. By implementing our intelligent platform in one of the world’s most sophisticated logistics networks, we are accelerating growth while continuing to build industry-leading operational expertise, comments Einride CEO Roozbeh Charli.
Amazon also confirms the agreement and highlights the difficulties of transitioning logistics for heavy transport specifically.
This rollout is an important step forward in addressing one of the toughest challenges we face when it comes to phasing out carbon emissions from our transportation network – electrifying heavy-duty trucks. We look forward to continuing to work with Einride and learning from this operation as the trucks roll out on the roads, says an Amazon spokesperson.
Aiming for an IPO
The company is currently in a process to be listed on the New York Stock Exchange during the first half of the year. In the spring, Einride raised $113 million, approximately 1.1 billion kronor, at a revised valuation of 12.2 billion kronor as part of the IPO preparations.
The collaboration with Amazon adds to the company's existing customer list in the US, where they already work with players such as Pepsico and GE Appliances. The company was also recently granted permission from the US National Highway Traffic Safety Administration (NHTSA) to operate driverless electric trucks on public roads in states including Texas, although the agreement with Amazon currently only covers manually driven vehicles.
In the Swedish market, Ehandel.se recently reported that Einride has initiated a collaboration with Coop regarding electrified food deliveries in the Mälardalen and Uppland regions. This follows the online pharmacy Apotea at the end of last year choosing to reduce its collaboration with the company in favor of Postnord.