UPS Has High Hopes for a New Way to Deliver Packages

The Rise of eVTOLs

United Parcel Service (UPS) is buying 10 electric vertical takeoff and landing aircraft from Beta Technologies. UPS eventually wants to service its small and medium-sized markets with the devices.

The delivery company plans to test Beta Technologies’ eVTOLs in its Express Air Delivery network. The aircraft will operate under UPS’ Flight Forward unit—a group which is also exploring the use of drones for delivery.

As part of the deal, Beta Technologies will provide UPS with rechargeable batteries and landing pads. UPS has the option to buy 150 additional eVTOLs. Terms of the deal were not disclosed.

Cargo Containers in the Sky

Beta Technologies’ eVTOLS can fly at speeds of 170 mph and travel 250 miles on a single charge. The aircraft can hold 1,400 pounds of cargo. The vehicles are best suited for time-sensitive deliveries which typically rely on small fixed-wing aircraft. UPS said the aircraft will take off and land on UPS facilities, reducing the time spent in transit. This will also cut down on emissions and operating costs.

Once the aircraft are delivered, UPS said it can use them for multiple short routes or one large route on one battery charge. “You can see a future where it’s carrying, let’s say 1,000 pounds, 1,500 pounds to rural hospitals,” said Bala Ganesh, Vice President of the UPS Advanced Technology Group.

UPS Bets on Advanced Delivery Tech

UPS’ purchase of the electric aircraft marks a further push to use advanced technology to deliver packages. Beta and UPS worked closely on the initiative. “By utilizing vertical takeoffs and landings, we can turn relatively small spaces at existing UPS facilities into a micro air feeder network without the noise or operating emissions of traditional aircraft,” said Kyle Clark, Founder of Beta Technologies.

This isn’t UPS’ first purchase of electric delivery devices. In January of 2020 it agreed to buy as many as 10,000 electric vehicles from Arrival Group (ARVL).

The recent ecommerce boom has led many companies to look for innovative, sustainable delivery solutions. UPS has been an important player in the delivery market over the past year and wants to make sure to maintain its position.

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS21040802