Volvo on Demand “trucks as a service” offering scores its first customer

The air and ocean freight forward specialists at R&M Trucking have become the first US customer for the new Volvo on Demand “trucks as a service” offering by deploying a new Volvo VNR Electric semi truck to carry out local and regional freight and logistics deliveries from Chicago’s O’Hare International Airport.

Everything else is a subscription model these days, so why not semi trucks? And if we’re going to subscribe to a big Class 8 hauler, why not make it electric?

Those seem to be the questions being answered by the new Volvo on Demand truck-as-a-service (TAAS?) initiative from Volvo Financial Services (VFS). In practice, the TAAS model is designed to make it easier for fleets to electrify their big trucks by reducing the up front investment and capital outlay required to order these trucks compared to the less expensive diesel offerings. Volvo on Demand does that by reducing the down payment delta between ICE and BEV, offering qualified customers flexible, short term subscription options in 12 month increments.

Fleet buyers aren’t not financing the truck, in other words. They’re leasing renting subscribing to it. That’s good for the fleets since they avoid a big down payment, and good for dealers who would, otherwise, have to carry the much more expensive trucks on their floor plans.

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“Volvo on Demand is designed to remove barriers to adopting battery-electric trucks by offering a flexible, all-inclusive service model,” said Logan Andrew, eMobility territory finance manager East, Volvo Financial Services. “This deployment helps R&M Trucking integrate electric trucks into its fleet in a way that makes business sense—minimizing upfront capital investment while providing predictable operational costs.”

R&M Trucking will 6×4 Volvo VNR Electric trucks with the six-battery configuration, offering a range of up to 275 miles and the ability to charge to to 80% capacity in under 90 minutes. The company is also installing EV chargers at its warehouse to support overnight charging.

Electrek’s Take

Even if you want to electrify 100% of your fleet tomorrow, the up front costs of acquiring a fleet that costs anywhere from 50-300% more than the fleet you have can present a considerable cash flow obstacle. Anything that manufacturers or other stakeholders can do to reduce that up front burden – with rebates, for example – will undoubtedly be welcome.

SOURCE | PHOTOS: Volvo Trucks.