Cutone Transport is the first ground delivery contractor for FedEx in Canada to incorporate Xos, Inc. electric step vans into its fleet

Cutone Transport Inc., an Ontario-based independent package transportation and delivery service provider and subcontractor of FedEx Ground, has added three battery-electric step vans to its last-mile delivery fleet from U.S.-based commercial electric vehicle manufacturer Xos, Inc.

The vans were delivered to Cutone Transport in June and mark the first time Xos has shipped vehicles to a Canadian customer.

“We’re excited to roll out the all-electric vehicles from Xos to help us become a more sustainable enterprise while also saving on fuel and maintenance costs,” stated Peter Cutone, owner of Cutone Transport Inc. in a press statement. The company’s switch from internal combustion engine vehicles to battery-electric will result in “immense cost savings,” Cutone added.

Cutone Transport is one of the thousands of ground delivery contractors, also known as independent service providers (ISPs), in North America for Tennessee-based FedEx Corp,’s subsidiary FedEx Ground.

ISPs are independently contracted by FedEx Ground to provide package pick-up and delivery services on FedEx’s behalf. They are in charge of managing all aspects of running a FedEx route business, including buying and maintaining all vehicles and recruiting, employing, and scheduling drivers.

FedEx’s zero-emission targets

In March of last year, FedEx Corp committed to becoming a fully carbon-neutral delivery network in the next two decades. The company plans to purchase only electric vehicles by 2030 and to have a zero-emission parcel pickup and delivery fleet by 2040.

“We have a responsibility to take bold action in addressing climate challenges,” said Frederick W. Smith, chairman and CEO, of FedEx Corp in a press note. “This goal builds on our longstanding commitment to sustainability throughout our operations, while at the same time investing in long-term, transformational solutions for FedEx and our entire industry.” 

FedEx’s ISPs are not considered FedEx employees and the company is not responsible for converting ISP vehicles to electric as part of its overall climate commitments. However, FedEx has stated that it will collaborate with ISPs to help them transition to carbon-neutral operations as well, through possible incremental subsidies.

Last month, FedEx received its first delivery of 150 Zevo 600 electric vehicles from BrightDrop, a General Motors’ technology startup. The vehicles were delivered to FedEx Express, a subsidiary of FedEx Corp. in southern California. The initial 150 vehicles are part of a larger order FedEx made for 2500 BrightDrop vans.

BrightDrop Zevo 600 vans are currently being built on a low-volume basis in Michigan until its own assembly plant in Ingersoll, Ont., is ready by the end of this year.

Xos moving into Canada

Although this is the first time Xos’s electric step vans are entering the Canadian market, the electric medium- and heavy-duty commercial vehicle manufacturer already has a year-long history of providing FedEx Ground operators with its EVs.

Last August, Xos signed a deal with FedEx to provide 120 zero-emission electric trucks to be deployed across 35 FedEx Ground operators in California, New York, New Jersey, Massachusetts, and Texas.

“We are pleased to support the electrification of FedEx’s medium duty pickup-and-delivery fleet…as FedEx continues to advance sustainability efforts and work toward achieving carbon emissions goals across its global business. We are thrilled with our current FedEx Ground relationships and look forward to expanding them further among the 4,000 FedEx Ground operators who support the FedEx network,” said Dakota Semler, Xos’ co-founder and CEO in a press release detailing the company’s emission targets last year.

The step van deliveries in June to Canada’s Cutone Transport is Xos’ 24th completed vehicle delivery to a FedEx Ground operator.

Electric Autonomy Canada reached out to Cutone Transport, Xos and FedEx Corp. for comments but did not get responses back in time for publication.