Canoo Inks Deal with USPS: Postal Service to Acquire 6 Electric Vehicles

California-headquartered Canoo Inc. (NASDAQ:GOEV) said on Wednesday that the U.S. Postal Service (USPS) has joined hands with the EV startup to acquire six electric vehicles (EVs).

What Happened: USPS will take delivery of Canoo’s Lifestyle Delivery Vehicle 190 (LDV 190) in the first quarter of 2024, the company said. The purchase is part of the postal service’s $40 billion investment strategy aimed at improving its transportation and delivery network.

On Monday, the postal service showcased its new fleet of electric delivery vehicles at the South Atlanta Sorting and Delivery Center.

The USPS projects a total procurement of 21,000 EVs, including 9,250 from Ford Motor Co, subject to market availability and operational feasibility, it said in a statement.

Why It Matters: By 2028, the postal service aims to have 66,000 EVs in its delivery fleet including at least 45,000 battery-electric Next Generation Delivery Vehicles, it said, while adding that it will also explore the feasibility of having a 100% electric delivery vehicle fleet.

In addition to helping it achieve its EV target, the updation will also allow the federal establishment to transport a larger mail volume, it said.

Image credits: Canoo

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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