Amazon India struck a remarkable achievement in December 2024 by incorporating 10,000 electric vehicles into its delivery fleet a full year ahead of schedule.
The achievement stood as a strategic response towards the Delhi government’s groundbreaking Delhi Motor Vehicle Aggregator and Delivery Service Provider Scheme introduced in 2023. The Delhi government’s scheme requires delivery companies operating in the capital to transition to electric vehicle fleets which establishes Delhi as India’s first state to implement these measures.
Amazon isn’t alone in this race. Zomato & Blinkit introduced an all-electric delivery fleet for large orders that captured public attention through its silent and sleek operation. Flipkart has committed to transitioning its entire delivery network to electric vehicles by the year 2030.
Businesses must adapt to survive in the fast-changing regulatory environment where sustainability practices have become essential.
Why Electric? The Consumer-Friendly Edge

Electric vehicles come with undeniable perks. The quiet operation of these vehicles goes hand-in-hand with their interactive dashboards while charging remains more affordable than traditional fueling methods. But beyond these consumer-friendly features lies a deeper mission: Electric vehicles provide consumer-oriented advantages but also serve a more profound mission to confront India’s air pollution emergency. Last-mile delivery fleets make frequent trips through Delhi’s notoriously smog-filled air and their high visibility positions them as ideal candidates to lead environmental change efforts.
The Delhi Aggregator Policy directly confronts this urgent problem. The government aims to generate momentum for broader sectoral change by initially regulating last-mile delivery fleets. Demonstrating that delivery giants can transition to green practices proves that other sectors need to follow this example.
The Roadblocks – Challenges on the Path to Electrification
The goal demonstrates remarkable ambition but faces much more complex real-world conditions. Critics believe the Delhi government has set unrealistic targets which overlook practical challenges on the ground. The policy mandates fleet aggregators to gradually increase their EV holdings to represent a designated portion of their new fleet acquisitions.
Sounds simple enough, right? Not so fast.
Ola, Uber and Zomato depend extensively on partnerships with volunteer drivers. The process of persuading drivers to adopt EVs remains difficult due to their high initial purchase price. The market has an insufficient number of EVs available to achieve these objectives despite driver readiness.
Financing is another major hurdle. Independent delivery partners fund their vehicle purchases through personal investments and loans from organizations such as Revfin. The loans feature interest rates that reach 30% annually with a reducing rate option or 17% flat which results in costs that exceed those of standard housing or educational loans.
Fleet owners who hire drivers have somewhat better options but continue to face significant difficulties. Insufficient data on EV residuals leads to Indian banking institutions facing difficulties when making lending decisions.
The World Economic Forum (WEF) collaborated with NITI Aayog to publish a 2022 report which reveals traditional underwriting methods are inadequate for gig workers and new-age fleet operators with no formal credit histories. The report proposes tripartite lending arrangements between lenders, original equipment manufacturers (OEMs), and fleet owners as a viable solution. Original equipment manufacturers (OEMs) have the option to provide buy-back programs or expanded warranties to demonstrate lasting value for their electric vehicles to buyers.
Charging Ahead – The Infrastructure Gap
Even if financing issues are resolved, another massive challenge remains: charging infrastructure. Delhi has more than 4,000 public charging stations yet cannot match the demands of its expanding two- and three-wheeled EV fleet. The expansion of charging and battery-swapping stations is essential according to experts to maintain the progress of this transition.
A policy focused on widespread installation of charging stations has the potential to transform the current state of affairs. Investors will look for stable cash flows together with patient capital when evaluating opportunities in this sector. Electrification plans with good intentions remain vulnerable to delays when they lack strong infrastructure support.
What’s Next? The Bigger Picture
India faces a crucial juncture where the stakes have reached their utmost level. Last-mile delivery fleets offer an immediate opportunity to accelerate the electrification movement. Achieving success requires synchronizing policies with real-world conditions while promoting financial innovation and strengthening infrastructure. Time runs out while stress levels increase.
Will India’s fleet aggregators successfully meet this critical challenge? The world is watching. One thing is certain: Today’s decisions will determine the future state of both mobility and environmental conditions for the coming generations.
Why You Should Care
The story extends beyond companies transitioning from petrol to electricity. This narrative centers on how one country faces one of the most significant environmental challenges humanity encounters today. The positive effects of electrification reach beyond company offices and include cleaner air and reduced noise levels. But the journey won’t be easy. India’s advancement may teach valuable lessons that will guide global efforts toward sustainable development.