Volvo’s On Demand Service Makes Electric Truck Adoption Easier for Fleets

The logistics industry is witnessing a significant shift towards electrification, highlighted by R&M Trucking’s recent deployment of a Volvo VNR Electric semi truck.

As the first customer in the United States to participate in Volvo’s on Demand “trucks as a service” (TaaS) initiative, R&M Trucking is setting a precedent for local and regional freight and logistics operations around Chicago’s O’Hare International Airport.

This innovative TaaS offering from Volvo Financial Services allows companies to lease electric trucks rather than purchase them outright, thereby reducing the steep upfront investment typically associated with acquiring electric vehicles (EVs).

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The flexible subscription model aims to ease the transition to battery-electric trucks by minimizing capital outlay and providing cost predictability. “Volvo on Demand is designed to remove barriers to adopting battery-electric trucks,” said Logan Andrew, eMobility territory finance manager at Volvo Financial Services.

The VNR Electric trucks, equipped with a six-battery configuration, boast a range of up to 275 miles and can achieve 80% charge in under 90 minutes, making them suitable for urban and regional deliveries. To further support its electrification efforts, R&M Trucking is also installing EV chargers at its warehouse to facilitate overnight charging.

Despite the benefits, the transition to electric fleets can be daunting due to significant initial costs—new electric trucks can range from 50% to 300% more expensive than traditional diesel options. The TaaS model thus presents a vital opportunity for organizations looking to modernize their fleets without facing financial strain.

As companies like R&M Trucking embrace this model, it could pave the way for broader adoption of electric vehicles across the logistics sector, transforming the freight industry for years to come.