Electric two- and three-wheelers are gaining popularity among last-mile delivery drivers.
The electric micro-mobility market for last-mile delivery in South Africa is anticipated to grow at an annual growth rate of 20% until 2030.
This is according to GreenCape’s 2025 electric vehicle (EV) market report, which states the South African EV market offers several emerging opportunities for local and international investors.
Four key sectors have been identified as particularly attractive for investment: electric passenger vehicles, electric buses, the electrification of freight and logistics, and the electrification of last-mile delivery.
Analysing the last-mile delivery sector, the report notes that by 2030, this market is projected to grow by 17 900 vehicles, with a market value of R1.2 billion.
According to the report, electrification of last-mile delivery, buses and taxis holds the biggest opportunities for sales in SA by 2030.
Significant work is under way to unlock the passenger vehicle opportunity and the freight and logistics sector, but this will take some time, it says.
Last-mile delivery is described in the report as the transportation of products from a warehouse, distribution centre, restaurant, or retail outlet to the consumer’s location, typically a residence.
With the rise of e-commerce, on-demand last-mile delivery services have become a key strategy for retailers to increase sales, improve customer retention and stay competitive.
This has created new demand for mobility services, as consumers no longer need to travel to stores to make purchases, but instead rely on home deliveries, notes the report.
“By the end of 2024, the electric micro-mobility market for last-mile delivery in South Africa was estimated to be 3 800 vehicles, valued at R244 million,” says GreenCape.
“This is boosted by the growth rate in the online retail sector, which exceeded 29% in 2023 and is expected to continue to increase 20.4% annually by 2030. The growing consumer preference for on-demand and same-day delivery services has led to more frequent, shorter and higher-mileage delivery trips with greater fuel consumption.
“These trips often involve delivering smaller parcels, making larger vehicles, like light delivery vans, unnecessary. This shift has created a niche market for electric two- and three-wheelers in last-mile delivery services, particularly in sectors like online food, grocery and clothing delivery.”
Electric two- and three-wheelers, with a range of around 120km, are well-suited for frequent urban trips, offering operational fuel cost savings.
As the industry shifts from internal combustion engine (ICE) motorcycles to electric mopeds and motorcycles, electric two- and three-wheelers are gaining popularity among last-mile delivery drivers.
They are also cheaper than larger electric commercial vehicles, with a lower running cost per kilometre, according to the report.
In SA, several start-ups have emerged that offer fleet services, leasing electric two- and three-wheelers to delivery drivers, often with added charging services, notes the report.
“Leasing models, such as electric-vehicle-as-a-service, are lowering barriers to entry for electrifying last-mile delivery. Even though electric two- and three-wheelers may be more expensive upfront than their ICE counterparts, leasing options that include charging services allow delivery drivers and independent contractors to access these vehicles affordably.”
Pretoria-based EV-as-a-service company Everlectric previously told ITWeb that SA is seeing increasing demand for this offering, as more firms in the logistics industry look to lower their carbon emissions through electric fleets.
EVs also limit reliance on volatile fuel prices, and reduce the total cost of ownership compared to fossil fuel cars − creating cost savings for businesses, notes the company.
EV-as-a-service is a month-to-month, use-based vehicle subscription and an alternative to the traditional purchase of fleets.
In 2024, at least 25 electric medium commercial vehicles were sold, mainly used in the middle-mile logistics sector in SA.
The increase in sales of electric commercial vehicles in SA is largely driven by escalating fuel costs in the freight and logistics industry, coupled with pressure from fast-moving consumer goods companies to decarbonise their logistics operations in order to meet their corporate environmental, social and governance targets, states the report.
“The case for electrifying commercial freight and logistics fleets in South Africa is strong, given the high mileage and fuel consumption typical of these fleets, which makes electrification a cost-effective and environmentally-beneficial solution,” says GreenCape.
