Australia Post

Electric Delivery Bikes

Author

Han Xue

Han Xue

School

Monash University

Monash University

Professor

Gitanjali Bedi

Gitanjali Bedi

Global Goals

3. Good Health and Well-Being 9. Industry, Innovation and Infrastructure 13. Climate Action

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Summary

Australia Post introduced new electric delivery bikes to increase employee safety and lower carbon emissions. This would help to solve SDG 3: Good Health and Well-Being, SDG 9: Industry, Innovation and Infrastructure, and SDG 13: Climate Action.

Innovation

Australia Post has the largest number of delivery motorcycles in the country. These vehicles and the delivery drivers are an essential part of the company’s operations. Therefore, introducing the new range of electric delivery bikes can benefit all stakeholders involved in Australia Post. According to Australia Post Group's Chief Operating Officer, Bob Black: “The new electric delivery vehicles are safer than the traditional motorcycle. They are easier to see on the road, more stable, have increased rider protection and lower on-road speeds.” They can ensure greater personal safety for the delivery employees and help to achieve UN Sustainable Development Goal (SDG) 3, Good Health and Well-Being. The new improvements also increase the safety and well-being of other riders and pedestrians. Being more environmentally friendly is another key advantage for this innovation. The new delivery bikes are completely electric powered, with a range of up to nine hours per full charge, and they can travel up to 45 km/h. This would help to reduce carbon emissions, and target SDG 9, Industry, Innovation, and Infrastructure, as well as SDG 13, Climate Action.

Electric Delivery Bikes

Inspiration

The safety of bike delivery employees is a top priority for Australia Post due to the higher risk of traveling on motorcycles. In 2018, 213 people lost their lives on Victoria's roads; of these, 38 were riders and passengers of motorcycles, representing 18% of the 2018 lives lost. Therefore, the main inspiration behind the new delivery bikes involves safety concerns. According to Li Yuan, there has been an increase in the volume of parcel delivery in recent years, largely due to the growth of global e-commerce. The increased number of parcels would lead to more carrying space required for delivery bikes. She believes the increased capacity of the new bikes is an important inspiration. Li Yuan also believes rising petrol prices are another crucial factor. “It’s important for Australia Post to switch to renewable energy in the near future in order to cut down operating costs and increase profit.” The pressure of being more environmentally friendly could be another inspiration. Major corporations in Australia are starting to focus more on sustainability and the UN SDGs. Thus, it is important for Australia Post to create new innovations to address the SDGs.

Overall impact

The impacts of this innovation would gradually increase as Australia Post plans to steadily roll out more electric bikes in the future. The company currently has 2,000 electric motorbikes in the Australia Post EV fleet, which they intend to increase to 4,000 over the next 3 years. The electric bikes would make a huge impact in the industry long term. Other competitors would likely make the switch from petrol-powered vehicles to compete with Australia Post. The innovation is also sending a strong and powerful message to major companies in other industries to use more renewable energy.

Business benefit

Employee well-being is perhaps the most important benefit for Australia Post. It’s no surprise that employees are happier when working in a safe environment. The new bikes can help to increase their workplace satisfaction and could lead to higher levels of retention. The reduced level of mental stress regarding safety could also lead to increases in productivity. Greater loading capacity from the new bikes could also increase delivery efficiency. Li Yuan believes this is another key business benefit: she said delivery employees can make farther runs without constantly travelling back to parcel centers. The time saved on the road could also potentially shorten delivery time for customers. The switch to pure electric-powered vehicles would combat the rising petrol prices in Australia. There is no doubt that electric bikes would be cheaper to operate in the long run. Therefore, it is important for Australia Post to make the switch ahead of its competitors to maintain its dominance in the market. The company is also investigating the use of electric vans as well. All these benefits can lead to increases in revenue both short term and long term for Australia Post.

Social and environmental benefit

The main environmental benefit from the switch to electric vehicles is lower carbon emissions. Becoming more environmentally friendly has become a top priority for Australia Post. According to the company’s environmental action plan for 2018-2020, the rollout of the fleet will help to meet key environmental targets that are based around a 25% reduction of greenhouse gas emissions by 2020. The switch would also send a positive message regarding electric vehicles: it would likely influence other major organizations to make the switch as well. The innovation would target three UN SDGs: Good Health and Well-Being; Industry, Innovation, and Infrastructure; and Climate Action. The new electric bikes would also be quieter than the current outdated petrol-powered bikes. They would cause less noise disturbance in neighborhoods and increase harmony within the community. Increased visibility would also provide a safer environment for other drivers, bikers, and pedestrians.

Interview

Li Yuan, Franchisee

Business information

Australia Post

Australia Post

Melbourne, Victoria, AU
Business Website: https://auspost.com.au/
Year Founded: 1809
Number of Employees: 10000+

Over Australia Post's long history, its social purpose and commitment to the community has remained the same: to create connections and opportunities that matter to every Australian.