Earlier this month Canoo announced a new definitive agreement with Go2 Delivery, a medical courier company based in Virginia, to buy five LDV 130s with an option to increase that up to ninety vehicles total.
Not being based in the Chesapeake Bay area, we had never heard of Go2 Delivery before so in order to get a better understanding we reached out to the CEO and Founder, Eric Brown.
Not surprisingly he is under a non-disclosure agreement(NDA) however we were delighted that he still graciously gave us what answers he could and we wanted to share his responses.
CANOOERS - Could you please provide some background on the company to give people a better understanding of Go 2 Delivery?
Eric: We were originally called Mobile One Courier for the past 27 years, but about 9 months ago, we rebranded as GO2 Delivery. About 3 years ago, I started asking myself, "Why am I here, and what's my purpose on this planet?"
As a kid, I always wanted to be a Marine Biologist, but when I was about to graduate high school, my parents went bankrupt, and we lost everything. That changed my outlook. At the time, Marine Biologists made about $22k a year, so I switched my major to business to make more money.
As I thought about my passions for innovation, marine science, and the transportation industry, I began to consider the impact of climate change. I wanted to make a larger impact on the planet, especially for my kids and future generations. It became clear that addressing global warming was my purpose.
I realized that excess CO2 was a major issue and that the transportation industry contributes a lot to it. It made sense to aim for carbon neutrality, but I wanted to go beyond net zero. I thought about how to not only reduce the CO2 we create but also improve the ways the earth naturally sequesters CO2. Marine ecosystems are incredibly effective at this, especially marsh areas and estuaries.
This led me to focus on restoring and rebuilding ecosystems with sea grasses and oysters, which help foster and protect these areas. It felt like a perfect match with my passion for marine science.
Today, we focus on bringing innovation and efficiency not only to the delivery business but also starting to work on rebuilding marine ecosystems. A delivery service and marine ecosystem redevelopment might seem very different, but they are interconnected. We're all responsible for the planet.
We actually offer carbon-neutral deliveries now, and we're committed to going beyond that to make a real difference.
CANOOERS - I'm sure you can't give away what pricing you negotiated with Canoo but perhaps there is a ballpark figure you can provide or maybe you can disclose to what degree their number was competitive in comparison to other vehicles you looked at?
Eric: I can't share the exact pricing we negotiated with Canoo, but I can tell you a bit about how they stack up against the competition. Canoo offers Class I and II electric delivery vans, while most other companies focus on Class III and IV vans. Those bigger vans cost a lot more and don't have as much range. Canoo's Class I and II vehicles are a better fit for us, offering great value and better range for our needs.
CANOOERS - You've ordered 5, with an option to go up to 90 - are these first five vehicles being viewed or treated by you as a pilot or testing phase, and if so, how long would you suspect before you might be open to going beyond just the first 5 if they meet your expectations?
Eric: These initial vehicles will serve as a pilot or testing phase for us to validate their performance. Once we’re satisfied with the performance of the first five vehicles, we’ll consider increasing our order to go beyond the initial batch.
"I wanted to go beyond net zero...we're all responsible for the planet." - Eric Brown
CANOOERS - Are the initial LDVs coming as base units or will Canoo be providing upfitting?
Eric: We will be doing minor uplifting to keep the most flexibility for package sizes and types. For us the LDV 130’s are all for small parcel delivery for local routes less than 200 miles per day.
CANOOERS - Is there any additional Software or fleet management services that Go 2 Delivery will be utilizing from Canoo?
Eric: Not at this time, but open to it. We will evaluate that on the first few initial orders to find the best solutions.
CANOOERS - Canoo hasn't mentioned an east coast roll out and having a presence there: How do you expect that service and maintenance will impact you?
Eric: Canoo plans to roll out their production based on geography. If there are a lot of orders in a specific state, they might prioritize production for that area to set up a service center - that’s my guess. They haven’t made any commitments to me on any timeline.
CANOOERS - Why did you choose the 130s over the 190s - is this choice related to pricing or availability or perhaps the 130 is big enough to meet your current and future needs? With regard to the option to expand your order, are you locked in with the 130 or will it be open to other models?
Eric: We are interested in both the 130’s and 190’s, each will fit different needs. The 190’s will be primarily used for higher volume routes. That’s the vision for the long term. So the 190’s are on the radar based on availability.
CANOOERS - Could you dive into why you choose Canoo over the likes of the Ford E-Transit or GM Brightdrop, or other EV start ups like Mullen?
With the recent bankrupting of Fisker and other EV companies , you must have confidence in Canoo not facing a similar demise. It would be very debilitating for a small company like Go 2 Delivery to end up with a fleet of vehicles without a manufacturer to warranty and service them with software updates.
Eric: Based on Tony Aquila's personal investment in the business and what Canoo’s team is doing behind the scenes—hiring people, providing training, and building infrastructure—I believe they are well-positioned to grow. Their development plan to scale up manufacturing and their initial focus on business customers only sets them up for success.
Canoo’s product lineup is unique compared to other players in the market. In the US, only one other company, Mullen, offers a Class I EV delivery van. However, Mullen’s van has a much lower estimated range (110 miles advertised) and is built on a Chinese vehicle model modified from the previous company, ELMS, which raises some safety concerns for me. BrightDrop and Rivian are focused on larger delivery vehicles. While both offer good products, they are much more expensive. BrightDrop has a good range, but Rivian’s range is lower. We’ve been in talks with BrightDrop and are waiting for their new platform with higher range and lower costs for Class II/III vehicles. Ford’s E-Transit is also larger, but has a very low delivery range, and I believe they are discontinuing it.
I’ve been in contact with the four key EV delivery van providers. Rivian has been unresponsive due to my initial interest in purchasing a smaller quantity; it seems they are focused on large orders only from major corporations.
It's no secret that Canoo is facing an uphill battle right now in a tough economic environment with regards to financing a production ramp, but Go2 Deliver's decision to commit to Canoo EVs, despite other available options, serves as a strong endorsement of their product quality and suitability.
The focus on Class I and II vehicles, which fit the markets needs better than the larger and more expensive options from other manufacturers, highlights a niche where Canoo can really excel and capture substantial market share with commercial and government fleets.
Thanks again to Eric for taking the time to respond to our questions!
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