USPS invests $2.98B for 50,000 delivery vehicles including 10,019 electric units

USPS or the U.S. Postal Service announced on Thursday, March 24, that it would be investing $2.98 billion for its first order for 50,000 units of advanced delivery vehicles. From its initial plan, it will also be doubling the number of its electric vehicle orders from 5,000 to 10,019 units.

According to Reuters, USPS' Postmaster Louis DeJoy said that the orders were made based on the postal agency's ongoing efforts for rehabilitation and aim of improving outlook. With its goals, the executives decided that raising the number for the EV purchase makes good sense from the operational and financial point of view.

Previously, DeJoy pledged to buy at least 10% electric vehicles as part of USPS' multibillion-dollar scheme to withdraw its 30-year-old delivery vehicles. Last year, the USPS said it signed an initial contract for Oshkosh Corporation worth $482 million.

At that time, it said that it may place an order for up to 165,000 vehicles in the span of 10 years. The entire deal has been estimated to reach around $6 billion or more. Afterward, the independent postal service agency turned down a proposal from the White House and the Environmental Protection Agency (US EPA) to reconsider its plans of purchasing mostly gasoline-powered vehicles, and a new hearing was held for this issue.

In any case, USPS shared that it is expecting the new vehicles to arrive soon and start to be deployed for deliveries on the usual routes by the last quarter of 2023. The modern and upgraded rides will replace the older vehicles, especially those that have no air conditioning, airbags, and other safety fixtures.

"We are pleased to be moving forward with this much-needed investment in our fleet. Since I came on board a year and a half ago, we have continuously evaluated and adjusted our vehicle purchase strategy based on our future network initiatives, ongoing review of BEV application to our operational strategy, and our financial outlook as we undertake our ongoing implementation of the Delivering for America plan," Louis Dejoy, USPS chief executive officer and Postmaster General, said in a press release.