Smart Transport

UAE Accelerates Green Logistics with Rollout of New FedEx Electric Delivery Vehicles

New Mercedes-Benz eSprinter vans set to transform last-mile logistics and cut transport emissions

TLME News Service

In a landmark move for sustainable logistics, the United Arab Emirates has become the first market in the Middle East where FedEx has introduced Mercedes-Benz eSprinter electric vans into its fleet.

The deployment of these all-electric light commercial vehicles is seen as a defining step toward decarbonising delivery operations across the region’s rapidly expanding logistics networks, bolstering both environmental and business performance. 

As the UAE doubles down on its Net Zero by 2050 strategy and embraces innovation in transport, electric commercial vehicles (ECVs) are swiftly gaining traction.

From last-mile delivery vans and urban freight transport to heavy-duty electric trucks and pilot autonomous cargo fleets, electrification is positioning itself as a cornerstone of the nation’s logistics evolution. 

Greener Deliveries, Stronger Performance

The introduction of eSprinter vans into FedEx’s operations underscores the dual promise of electric commercial vehicles: lower emissions and improved operational efficiency.

FedEx’s electric vehicles are designed with zero-tailpipe emissions and can travel up to around 280 km on a full charge - a range tailored to the high-density urban delivery routes that characterise much of the UAE’s last-mile logistics. 

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For logistics providers operating in cities like Dubai, Abu Dhabi and Sharjah, such vehicles mean reduced dependence on fossil fuels, quieter operations, and lower maintenance costs, all of which translate into tangible business advantages.

Local pilot programmes have already shown that electric vans and trucks often require less frequent servicing and demonstrate lower energy costs than their diesel counterparts, enhancing total cost-of-ownership benefits over time. 

Beyond FedEx, regional players are increasingly piloting similar initiatives. Retailer Mars Gulf has introduced electric delivery trucks for chilled food logistics, signalling broader commercial interest in sustainable fleet solutions. 

Strategic Hub for Sustainable Logistics

The UAE’s strategic geographic position as a logistics and trade nexus - with some of the world’s busiest ports and free-trade zones - has amplified the appeal of electric commercial fleets.

Businesses here are under rising pressure to align with both local sustainability mandates and international environmental expectations. The uptake of ECVs helps companies reduce carbon footprints while maintaining service reliability in a competitive e-commerce and freight environment. 

Local authorities and research initiatives are also contributing to visibility around the commercial viability of electric fleets. Marks such as the Road2.0 action report have assessed the feasibility of broader commercial EV adoption in the UAE, identifying both challenges and enablers - from charging infrastructure readiness to operational incentives. 

Market Momentum and Growth Prospects

While the UAE’s electric commercial vehicle market is still emerging, industry data suggest steady growth through the rest of the decade. Estimates project a gradual rise in ECV fleet adoption, supported by expanding charging networks and regulatory encouragement aimed at reducing transport emissions. 

Globally, the electric commercial vehicle sector is experiencing rapid expansion, with its overall market size projected to grow substantially in the coming years as businesses and governments shift toward lower-emission transport solutions - a trajectory that will inevitably influence regional markets like the UAE’s. 

Challenges and Future Pathways

Despite the advantages and visible momentum, several challenges remain. High upfront costs for electric commercial vehicles and the ongoing need for robust charging infrastructure, particularly outside major urban centres, present barriers to swifter adoption.

Nonetheless, as battery technology improves and total cost-of-ownership narrows relative to diesel vehicles, these obstacles are expected to diminish. 

Moreover, developments in related technologies such as autonomous electric cargo trucks launched in industrial zones like Ras Al Khaimah highlight the UAE’s willingness to experiment with next-generation logistics solutions that combine electrification with automation. 

Greening Logistics in the UAE

Electric commercial vehicles are increasingly reshaping the UAE’s logistics landscape, offering a compelling blend of environmental benefits and improved operational economics.

The introduction of Mercedes-Benz eSprinter vans into one of the country’s leading logistics fleets marks a symbolic and practical milestone, reflecting broader industry trends toward sustainability and innovation.

As government policies continue to support cleaner transport solutions and businesses adapt to evolving cost and emissions pressures, electrification is set to become an integral component of logistics strategy across the UAE.

From enhanced last-mile delivery efficiency to greener freight corridors, electric commercial vehicles are proving they are not just a technological novelty but a transformative force in the future of logistics. 

Read More: Jebel Ali Port Slashes Emissions By Expanding Electric Fleet 10X in 2025