The Logtech company Budbee has in less than a year increased the share of fossil-free deliveries in the Swedish market from 10% to 97%. The goal is to be the market leader in large scale fossil-free distribution and become 100% fossil-free during 2021.
Budbee made its first e-commerce delivery in Sweden in 2016 and is today present in four markets, Sweden, the Netherlands, Denmark, and Finland. In Sweden, where 6 out of 10 can get Budbee's home delivery service, the company has also launched the 100% fossil-free delivery service Budbee Box. The Budbee Boxes are smart lockers placed in stores, train stations, and other places where people naturally visit.
At the beginning of 2020, 10% of Budbees home deliveries in Sweden were fossil-free. The company has since worked hard to increase that share. All pickups from e-commerce warehouses and middle-mile (linehaul between terminals) are made 100% fossil-free, and the vast majority of last-mile distribution is performed without fossil fuels. After 11 months, in November 2020, 97% of Budbees Swedish deliveries are fossil-free.
Several factors have made this fast transition possible. One is the new, green, and self-sustainable terminal Budbee completed during the summer of 2020. Another is the transition to start using the fossil-free fuel HVO100. In-house HVO100 fuel stations have been installed at Budbees terminals to let partners fuel up at discounted rates.
We have not increased pricing to achieve this green transition; this is an investment we are willing to do. Our goal is to be the best in the business in regards to large-scale fossil-free distribution. The first step is to become 100% fossil-free in regards to Swedish deliveries. Our chances to reach the goal look very good, and we aim to achieve 100% already by 2021, says Simon Strindberg, CMO at Budbee.
Now when we have an excellent fossil-free delivery option, I hope online merchants help us as much as possible to guide consumers to make climate-smart delivery choices, continues Simon Strindberg.
The challenges to reach the goal is partly related to electric cars and the availability of charging infrastructure. Budbee sees a strong need to improve both the time needed to charge batteries and the charging infrastructure. Another challenge is that some car manufacturer withdraws warranties when using HVO100 as fuel.
Budbee is a technology company that has created a cutting-edge logistics service for e-commerce. We call the combination of technological innovation applied to solve logistical challenges - logtech. Since 2016, we've revolutionized home delivery by enabling our customers to decide how and when they get their deliveries. We provide innovative, flexible delivery services to more than 25 million people in Denmark, Finland, Sweden, and the Netherlands. We're a dynamic, fast-growing business, committed to creating the best online shopping delivery service on the market!