UPS orders 10,000 electric delivery trucks

UPS has ordered 10,000 electric delivery trucks from electric vehicle maker Arrival, in what it calls a move to accelerate fleet electrification.

It's the Sandy Springs, Ga.-based shipping giant's largest-ever single order of electric vehicles.

The two companies are working together to develop electric vehicles with advanced driver-assistance systems, including the potential for automated movement in UPS depots - technology that it will test starting later this year.

UPS also announced it is partnering with Waymo to test autonomous vehicle package pickups in the Phoenix area. UPS said Waymo's Chrysler Pacific minivans will shuttle packages from UPS Stores to a UPS sorting facility, with a driver on board to monitor operations.

The technology allows the company to test later pickups at UPS stores.

The move comes after Waymo, the self-driving unit of Google parent Alphabet Inc., in 2018 launched a pilot program in Atlanta to use a self-driving truck for deliveries to Google's data center, with drivers in the cabs to monitor systems and take control if needed.

UPS has been testing self-driving tractor-trailers since last year through a partnership with autonomous driving company TuSimple.

The 10,000 Arrival electric delivery trucks will be delivered to UPS starting in the second half of this year through 2025.

UPS also is making a minority investment in Arrival through its venture capital arm UPS Ventures.

The Arrival vehicles will be purpose-built for UPS with advanced vehicle controls, and are expected to be deployed in North America and Europe.

UPS said it also will get priority access to buy more electric vehicles, contingent on successful tests of initial vehicles. Its investment in Arrival allows it to fast-track orders.

The shipping company has partnered with other companies for electric vehicles, including Workhorse Group, and placed orders for other electric trucks, including Tesla Semi trucks.

Out of more than 100,000 UPS vehicles globally, the company has about 10,000 alternative fuel vehicles in what it has called its 'rolling laboratory” fleet.

UPS did not disclose the price it is paying for the Arrival order.