UPS will buy 950 electric vans from Workhorse Group, according to the electric vehicle start-up.
The model UPS has purchased is the Class 5 N-Gen, of which it had previously ordered 50 as part of a test phase. Each vehicle can carry up to 5000 pounds of cargo, in a 1000 cubic foot bay, and can travel for up to 100 miles before its battery needs to be recharged.
The vehicles will cost around $6 per 100 miles to run, which is cheaper than vehicles that rely on fuel.
“This is a significant deal because it will be the largest order of electric vehicles in that class in the United States,” said Duane Hughes, president of Workhorse, to trucks.com.
UPS has not yet made its own announcement but has confirmed the deal. It is due to receive the new vans in September, adding to its existing count of over 300 electric vehicles worldwide—and its new smart grid at its depot in London.