[HN Gopher] How Amazon Became the Largest Private EV Charging Op...
       ___________________________________________________________________
        
       How Amazon Became the Largest Private EV Charging Operator in the
       US
        
       Author : defrost
       Score  : 73 points
       Date   : 2024-04-22 08:23 UTC (1 days ago)
        
 (HTM) web link (www.bloomberg.com)
 (TXT) w3m dump (www.bloomberg.com)
        
       | mrbishalsaha wrote:
       | Amazon trying to be everywhere
        
       | cjbenedikt wrote:
       | It would be interesting if Amazon would calculate how much CO2
       | they save because their customers don't drive to the supermarket
       | but order from Amazon. With the data that Amazon certainly has
       | access to, it should be possible to calculate this. Certainly
       | considerable in the US.
        
         | MisterBastahrd wrote:
         | Meanwhile, I would never dream of ordering groceries outside of
         | specialty items through Amazon. They are prohibitively
         | expensive on most food items that have any sort of weight
         | compared to Walmart and Instacart. Granted, I don't have a
         | Whole Foods nearby.
        
           | nashashmi wrote:
           | Just you wait. Order your groceries in the morning. It will
           | be arrived by night from a service called grocery fulfillment
           | and distribution.
        
             | huytersd wrote:
             | Instacart already delivers within an hour to my home from a
             | store of my choice. This means in addition to the regular
             | grocery store items, I can get speciality items from the
             | ethnic Indian, Chinese, Korean stores delivered too. With
             | the subscription ($9.99/month) there are no delivery fees
             | either. That's going to be hard to beat.
        
               | eurleif wrote:
               | Yes, no delivery fees; merely service fees for the
               | service of delivery.
        
               | huytersd wrote:
               | Yeah but it's like $2-3, not terrible for the
               | convenience.
        
               | csa wrote:
               | > there are no delivery fees either
               | 
               | Careful with that.
               | 
               | The delivery fees may not be explicit, but they
               | definitely charge more for items at some stores, with
               | Costco being one of the more egregious ones.
        
               | huytersd wrote:
               | Are you sure about that? Because if so I would reconsider
               | my use of instacart. We buy a lot of stuff from Costco
               | and it's a 45 min drive away so we almost never go into
               | the store.
        
               | csa wrote:
               | Check out this thread on Reddit:
               | 
               | https://www.reddit.com/r/Frugal/comments/1cal0ff/comparin
               | g_c...
               | 
               | Short answers:
               | 
               | - Yes, they mark up. 24%ish.
               | 
               | - Markup may be different when shopping on IC directly
               | versus Costco same day delivery (via IC).
               | 
               | - Coupons like 50% off orders over $xx changes that math.
               | 
               | - Factor in tip into the equation.
        
             | roughly wrote:
             | Not to beat the drum on urbanization, but I live 2 blocks
             | from my grocery store, so that's not really putting
             | anything on the table for me.
             | 
             | Different views of the future.
        
               | 0x457 wrote:
               | I have a grocery store literally downstairs, and I
               | sometimes pay someone to deliver bags to me.
        
           | duxup wrote:
           | Personally I don't order food items from Amazon because I
           | worry about their whole counterfeit issues / that they really
           | don't care about that issue.
        
         | Closi wrote:
         | Not quite as simple as that bit of analysis, as:
         | 
         | 1. The CO2 of the Amazon delivery needs to be taken into
         | account (apportioned to the number of drops), vs delivery to
         | store. Delivery to stores is highly efficient compared to last
         | mile.
         | 
         | 2. Most Amazon purchases probably wouldn't directly result in
         | less trips to the supermarket (i.e. am I driving to the
         | supermarket just to pick up one item, or am I going there
         | anyway and picking up everything I need when I am there?)
        
           | earthling8118 wrote:
           | Delivery to stores might be more efficient, but then the last
           | mile cost doesn't go away. Most of the stuff that I would buy
           | from Amazon isn't available at the stores that I go to so it
           | would require an entirely separate trip to somewhere that I
           | would not go otherwise. Often multiple stores.
        
             | throwup238 wrote:
             | It depends on where your stores are and how frugal the rest
             | of your shopping is. My Trader Joes/Costco (five minutes
             | away) is in an eight block shopping center with Best Buy,
             | Home Depot, and a dozen other big box stores which I think
             | is fairly common in America.
             | 
             | Between that and shopping for fresh meat and produce at
             | ethnic markets that are all over the city, the vast
             | majority of my shopping is amortized over staple groceries
             | that I can't or won't buy online.
        
       | nashashmi wrote:
       | The emissions of producing the vehicles should be tallied as well
       | along with emissions for electric production.
       | 
       | For a company at scale as amazon, they are a major consumer of
       | equipment and the sourcing of that equipment is also a corporate
       | operation.
        
         | toomuchtodo wrote:
         | https://www.epa.gov/greenvehicles/electric-vehicle-myths
         | 
         | Draw attention to https://www.epa.gov/greenvehicles/electric-
         | vehicle-myths#Myt... specifically the lifecycle green house gas
         | chart.
        
           | nashashmi wrote:
           | That is good news all around. But we need to also realize
           | when you have as many as 100,000 trucks, battery failures and
           | battery replacements are nearly 1000 times a year. Those
           | costs add up to the ghg. It might be definitely less than ICE
           | Cars but if your goal is to offset, then this is a cost to
           | offset too.
        
             | toomuchtodo wrote:
             | Any failed or end of life batteries will be feedstock for
             | the recycling stream. To drive down lifecycle green house
             | gas emissions, there should of course be focus on using
             | clean energy through the process whenever possible. We are
             | building an enormous energy storage manufacturing and
             | deployment flywheel, improvement should be continuous as
             | the Machine is built.
             | 
             | https://www.redwoodmaterials.com/recycle-with-us/
        
         | vel0city wrote:
         | I imagine they break-even in GHG emissions in most places in
         | the US within a year or two of ownership. These trucks will
         | likely be in service for over a decade. Last-mile delivery
         | trucks get absolutely _horrible_ mileage, constantly having to
         | accelerate and brake all day long with a large amount of mass.
        
         | audunw wrote:
         | Then you also need to factor in the recycling opportunity for
         | the production.
         | 
         | An EV may have fairly high CO2 emissions during production, but
         | much of that is associated with mining of metals/minerals.
         | Those are generally recyclable. Large scale commercial
         | recycling of EV batteries is already happening. So those CO2
         | emissions are not for just one vehicle. It's for many vehicles
         | far into the future.
         | 
         | The CO2 emissions from burning fossil fuels will never benefit
         | anything but the one vehicle it's propelling forward.
         | 
         | You've also gotta keep in mind that the mining and industrial
         | transportation sector is also being decarbonised, sometimes
         | with the same EV technology that EV cars are made with.
         | Electric mining dump trucks is now a reality. Keep the long
         | term picture in mind: we actually have a very viable pathway to
         | eliminate whatever minor CO2 emissions are associated with EVs
         | by just pouring more investments and R&D into EV technology.
        
         | jeffbee wrote:
         | You are not the first person to think this thought. It is
         | standard greenhouse gas inventory methodology. Quoting from
         | Amazon's GHG report:
         | 
         | """Transportation activities generate carbon emissions through
         | the combustion of fossil fuels when vehicles are driven, the
         | manufacturing of vehicles, and the supply chain for fuels. The
         | emissions model for transportation covers emissions associated
         | with "well-to-wheels" impacts (e.g.,extracting, refining,
         | distributing, and consuming transportation fuels) and "vehicle"
         | impacts (e.g., manufacturing, maintaining, and disposing of
         | vehicles). These impacts are reported as emissions factors
         | based on grams of CO2e per kilometer basis."""
        
         | w0m wrote:
         | VW put out a report on the topic a few years back.
         | 
         | Tldr; for consumer vehicles, break even point for emissions was
         | roughly 40k miles in the EU, and 50k in the US. After that it
         | was a ~net positive vs equivalent gasoline model. For
         | commercial use cases where 50k miles can be done many times
         | over in a single year (and expected vehicular lifecycle is much
         | much longer), it should be pure gravy.
        
         | jlv2 wrote:
         | When making the comparison, don't forget to tally the effects
         | and emmisions of drilling, pumping, refining, and delivering
         | oil and gasoline to the point-of-sale.
        
           | triceratops wrote:
           | And all the oil spills and methane gas leaks.
        
             | nashashmi wrote:
             | These are not by design. They are by chance.
        
               | triceratops wrote:
               | That doesn't matter. They happen and they have an effect.
        
           | nashashmi wrote:
           | Yes. All of these are things that should be tallied if we are
           | only looking for ghg contributions.
        
       | MBCook wrote:
       | It's amazing how fast we went from rarely seeing an electric
       | Amazon van near me to seemingly most of them being EVs.
       | 
       | Makes so much sense. I wonder how many (tens of?) thousands a
       | single warehouse location might save per day in gas alone. Last
       | mile in urban/suburban areas is nearly ideal for an EV.
       | 
       | The upfront is very expensive with all the ancillary costs, but
       | it's hot to pay off handsomely after a while. And if a real
       | carbon tax were to ever appear it would be all the better.
        
         | jollyllama wrote:
         | A use case like this is probably one of the best for EV's.
         | Presumably Amazon will be able to have a centralized
         | maintenance facility where new batteries can be installed.
         | They'll be able to price in their own maintenance and resale
         | value will be of no concern.
        
           | reactordev wrote:
           | And they likely have the batteries on the shelf since it's a
           | fulfillment center and they sell them. Just buy them from
           | their own warehouse. Brilliant.
        
         | dymk wrote:
         | It pays off fast. For my situation in Washington, I'd be paying
         | ~$4.50/gal for an ICE car that gets ~28mi/gal, or ~$0.11/KWh
         | (at the tier-2 rate) for an EV that gets 3.5mi/KWh.
         | 
         | For the ICE car, that's ~6.2 mi/dollar, for the EV it's ~31.8
         | mi/dollar. ~5x cheaper per mile to drive the ICE. I drive ~15k
         | miles per year, so ~$2.4k in gas, or $470 in electricity -
         | saving ~$2k/year.
         | 
         | This doesn't take into account the lower total cost of
         | ownership of EVs in general. They're simple. They don't need
         | oil changes. The transmission can't go out.
         | 
         | And that's just for me driving once or twice a day; I'm sure
         | the Amazon drivers are putting factors more miles on their
         | cars, so a faster break-even point.
        
           | Kirby64 wrote:
           | It's even better for delivery vans, too: EVs thrive in
           | repeated stop-start conditions, which is what Amazon cans
           | frequently do.
           | 
           | It seems like only a matter of time before other similar
           | vehicles that are more industrial make this shift (eg,
           | garbage/recycling trucks). Imagine no more super loud garbage
           | trucks in the mornings...
        
             | organsnyder wrote:
             | Given the loudest part of garbage trucks around me is their
             | brakes, I'm thrilled at the prospect of them getting regen.
        
               | briffle wrote:
               | I chatted with a friend who used to be a garbage man in a
               | mid-sized west coast city. Most drivers in our area have
               | a daily route, and when they are done, they are done, but
               | paid for the whole's day work.
               | 
               | So they have an incentive to floor the throttle, and slam
               | the brakes. The drivers don't pay for fuel or brake pads
               | out of their salary, the company does, but if they drive
               | like a maniac, they can finish a few hours earlier.
        
               | playingalong wrote:
               | Where I live the biggest noise is from the loading
               | mechanism and the built in press.
        
             | Symbiote wrote:
             | We've had electric garbage trucks in Copenhagen since last
             | year. It's a small but nice improvement.
             | 
             | https://group.vattenfall.com/press-and-
             | media/newsroom/2023/s...
        
           | klooney wrote:
           | Washington is sort of a best case though- you have pretty
           | darn cheap electricity over there.
        
             | foobarian wrote:
             | Would be a no-brainer to cover warehouses and parking lots
             | with solar and charge the fleet yourself for even less.
        
               | Symbiote wrote:
               | Except the vehicles are probably in use during the
               | daytime.
        
               | Retric wrote:
               | It's common to have a mix where some trucks make 1 route
               | per day and others do several. So you can optimize by
               | rotating loading times, spare vehicles, and having some
               | onsite batteries.
               | 
               | Solar > battery means DC fast charging gets to skip AC>DC
               | losses which are significant. But you don't need to use
               | 100% of solar's output to save a lot of money.
        
               | MBCook wrote:
               | Even if you're not charging the fleet, you can power the
               | warehouse.
               | 
               | As long as you're using less electricity from the grid
               | overall per day, you'll save money in the long run.
        
             | toomuchtodo wrote:
             | Energy costs in most of the US are favorable to this math.
             | The cost of energy supply should be pushed down as
             | renewable deployment continues indefinitely.
             | 
             | https://www.globalenergyinstitute.org/average-electricity-
             | re...
        
               | bagels wrote:
               | California has a lot of renewables, but retail prices
               | have increased rapidly.
        
               | toomuchtodo wrote:
               | Unconstrained distribution costs because of lack of
               | political will to aggressively regulate (PG&E, etc).
               | Mostly a California problem, as long as PG&E is permitted
               | to extract executive comp and profits while minimizing
               | infrastructure investment. Supply costs are plunging
               | during the day due to utility scale solar output.
               | 
               |  _The reason PG &E rates are skyrocketing in California_
               | - https://news.ycombinator.com/item?id=40128003 - April
               | 2024 (26 comments)
               | 
               |  _After 111 years, SF finally moving to oust PG &E and
               | create a public-power system_ -
               | https://news.ycombinator.com/item?id=39587901 - March
               | 2024 (13 comments)
               | 
               | https://www.spglobal.com/commodityinsights/en/market-
               | insight... | https://archive.today/PeDeH ("April 2024:
               | CAISO sets back-to-back solar peak records in April;
               | power spot prices plunge")
               | 
               | > Spot power prices have been trending lower year on year
               | on lower natural gas spot prices and more renewable
               | generation supply, including hydropower following years
               | of drought.
               | 
               | > CAISO has 19.011 GW of installed solar generation
               | capacity, which accounts for the majority of renewable
               | resources on the grid at 62%, according to the Key
               | Statistics report. Solar capacity has increased nearly
               | 15% compared to a year ago and 26% from two years ago.
               | 
               | > There are currently 28.6 GW of solar projects in the
               | CAISO generation queue, including 13.8 GW that have
               | executed interconnection agreements and nearly 4.5 GW of
               | those have on-line dates expected listed for 2024. Only
               | two solar projects slated to come online in 2024 do not
               | have batteries connected.
               | 
               | https://app.electricitymaps.com/zone/US-CAL-CISO
               | ("ElectricityMaps.com: California CAISO Zone")
        
               | storyinmemo wrote:
               | California has a PG&E regulatory capture problem.
        
               | jdofaz wrote:
               | Electricity is very cheap next door in Arizona
        
             | freeAgent wrote:
             | Yeah, I wish I could get remotely close to that cheap
             | electricity in CA.
        
               | dymk wrote:
               | Solar panels :) it even made sense (for me) in WA at
               | $0.11/KWh.
        
               | freeAgent wrote:
               | I've already got them (and a battery), but it ain't
               | cheap! They're also pressuring everyone to go
               | electric/heat pump for everything, but then I'd have to
               | start paying the extortionate electric rates here once
               | again.
        
             | haliskerbas wrote:
             | Agreed, starts to break down if you live in California and
             | already own a hybrid.
        
           | kwhitefoot wrote:
           | > The transmission can't go out.
           | 
           | Are transmission failures really that common? In nearly fifty
           | years of driving and owning eight different cars I've never
           | had a transmission failure. One of the cars (Volvo Amazon
           | estate car) did 350k miles including the previous owner
           | rallying it for a couple of years. Apart from fixing a
           | leaking radiator when I bought it I never had any problems
           | with the motor or gearbox. We scrapped it just because my
           | wife wanted a newer more comfortable car.
        
             | nehal3m wrote:
             | I had a 2002 Saab 9-5 Sedan automatic transmission blow out
             | on the day I bought it. ODO said about 300k km (190k miles
             | give or take). The dealer replaced the car with a younger
             | 9-5 Wagon with lower mileage so I'm kinda glad it did.
             | 
             | That 2002 model is supposed to be a lemon transmission-wise
             | though (even so, 300k seems decent as far as lifespans go).
        
             | glial wrote:
             | I had a Chrysler van and had to replace the transmission
             | twice. Glad to hear you've had better luck than I.
        
               | jdofaz wrote:
               | their minivans are notorious for transmission problems
        
               | bombcar wrote:
               | There was (is?) a time where if you replaced the tranny
               | fluid with anything BUT the exact Chrysler one, it would
               | kill it dead pretty quick. Some people would buy up
               | minivans with dead transmissions at 80k miles or whenever
               | the quick lube place told them to flush the tranny, then
               | clean it out and put the right fluid in and it'd work
               | fine again.
        
               | Arrath wrote:
               | My mom didn't even get one home from the dealership when
               | it seized up on the highway. Something about the solenoid
               | pack but don't take my word for it, I was all of 8.
        
             | SmellTheGlove wrote:
             | I've owned 3 cars in my life, one of them driven into the
             | ground, one high mileage and given away when we moved to
             | the city, and the third we still own. A transmission is the
             | one thing I've never had to fix. Now that's just me.
             | Obviously transmissions do fail, but I'd bet in aggregate,
             | it's not nearly the most pressing issue. But it is the
             | second most complicated set of moving parts in the car, so
             | when it goes, it's not cheap.
             | 
             | All that said, electric cars really shine in city driving.
             | No transmission to go, and regenerative braking to save the
             | pads. It's valid to call it out if that's your use case
             | like these Amazon trucks.
        
               | LeafItAlone wrote:
               | A lot of the major cars makers have had years of bad
               | transmissions. Just Google " transmission failure class
               | action" with manufacturer names and you'll see how many
               | settle. But not all years and not at the same time across
               | manufacturers, so it's easy to miss bad ones.
        
             | Two4 wrote:
             | I come from a country where most people drive manual
             | transmissions, and the rule of thumb is that you're
             | replacing the clutch at 150-250k kilometers. Automatics
             | have torque converters instead of clutches, so that's
             | probably a non-issue. I do imagine that they're much more
             | integrated, and without a sacrificial clutch plate to take
             | load shocks, the entire system will give out after a
             | certain distance. This is all conjecture though.
        
               | bombcar wrote:
               | From my experience I've never had a tranny fail that
               | wasn't beat to death unmercifully.
               | 
               | Clutches wear out, and it is _possible_ to wear out an
               | automatic transmissions ' clutches, but I've never had it
               | happen.
               | 
               | Every car I've sent to the junkyard has had a working
               | transmission.
        
               | fragmede wrote:
               | Automatics used to have torque converters. These days
               | they've got multiple clutches are are mechanically more
               | efficient and have more gears than a manual transmission.
               | I still like my manual transmission car though.
        
               | thrill wrote:
               | Sounds about right. When my '96 BMW 328 finally met the
               | pothole from hell, I was on my 5th clutch at a little
               | over 500,000 miles.
        
             | jerlam wrote:
             | You probably don't make as many deliveries as an Amazon
             | driver, who are constantly stopping and parking and
             | starting and backing out of tight spots.
        
             | RankingMember wrote:
             | A bad transmission design can really leave a mark,
             | particularly when the company using it tries to sweep it
             | under the rug. Talk to owners of vehicles with Ford's
             | "Powershift" dual-clutch automatic transmission and you'll
             | hear nothing but horror stories.
             | 
             | https://en.wikipedia.org/wiki/Ford_PowerShift_transmission
        
             | stetrain wrote:
             | In my anecdotal experience I've found it to be not uncommon
             | in work trucks used for commercial duty over 200k miles.
             | Not sure about in the delivery van space.
             | 
             | It's a different level of wear and tear than a normal
             | commuter passenger vehicle.
             | 
             | I think the bigger savings on a delivery van would be
             | brakes. In constant stop-start driving using the motor for
             | regenerative braking is both an efficiency saver and
             | reduces wear and tear on the mechanical brakes.
        
               | fragmede wrote:
               | "efficiency saver" kinda downplays the fact that the
               | energy is being recovered which was previously just
               | wasted. Not throwing all that energy away is material at
               | Amazon scale.
        
             | hughesjj wrote:
             | My Chevy cavalier died due to a transmission issue at
             | around 125k miles. The Schuylkill expressway in rush hour
             | didn't help. Very clonky shifts near the end and it would
             | stall out when trying to find the right gear.
        
             | 0x457 wrote:
             | My dad had to replace the transmission in his last two
             | mustangs twice in each. It never fully failed, but it was a
             | nightmare to drive.
        
             | tw04 wrote:
             | You never owned a Chrysler product, did you? They were
             | notorious for taking a transmission from a much smaller car
             | or truck and putting it into a bigger one because on
             | average they would last the life of the 3-yr/36k mile
             | warranty, and not much longer. Same with things like shocks
             | and struts and springs.
             | 
             | GM on the other hand went the exact opposite direction most
             | of the time and put an overengineered heavy duty
             | transmission with maybe slightly cheaper internals into
             | their smaller vehicles.
        
             | SkyPuncher wrote:
             | They were, but not really any more. The problems have
             | largely been engineered out.
             | 
             | Transmissions are tough because they endure a lot of
             | extreme forces. Shift points have the risk of slamming
             | components together.
        
           | scoot wrote:
           | You've no idea how spoiled you are with those prices. UK at
           | current prices and exchange rates:                 Fuel:
           | Petrol: (Gasoline) USD7.10/US Gallon       Diesel: USD7.47/US
           | Gallon            Electricity:       Domestic: USD0.36/KWh
           | Charging network: USD0.70 - USD1.01/KWh
        
           | tschwimmer wrote:
           | I think you have a typo in your comment. You said that it's
           | 5x cheaper for ICE, but I think you meant electric
        
           | MBCook wrote:
           | Where I am the electricity I use is makes it about 1/3 the
           | cost to drive an EV over gas.
           | 
           | But for Amazon their drivers are constantly doing
           | stop/starts, which is horrible for fuel efficiency.
           | 
           | So I bet their numbers are way better. And I wasn't including
           | maintenance which as you mentioned should be tremendous.
        
           | chatmasta wrote:
           | The lower TCO depends on the intended lifetime of the
           | vehicle. For delivery use cases where the expected lifetime
           | is probably on the order of 5-10 years, it's believable that
           | TCO is lower.
           | 
           | But if the expected lifetime is "as long as I can drive it,"
           | then TCO is probably not lower, simply because the maximum
           | lifetime of an EV is lower than that of an ICE vehicle. At
           | some point the car will fail - it will need battery
           | replacement (every X years), or it will depend on obsolete
           | infrastructure, etc.
           | 
           | You can drive a 1960 Cadillac today. Will you be able to
           | drive a 2020 Tesla in 2084?
        
         | pdabbadabba wrote:
         | > It's amazing how fast we went from rarely seeing an electric
         | Amazon van near me to seemingly most of them being EVs.
         | 
         | Interesting to hear you say that. I've been looking for them
         | but I've still never seen an Amazon EV in the DC metro area.
        
           | MBCook wrote:
           | I happen to live rather close to a large(?) Amazon
           | fulfillment center they just built a few years ago. Our
           | electricity isn't very expensive either, though it's not what
           | hydro areas pay.
           | 
           | I don't know if we're a test site or it was just easy to get
           | the power installed or what. Perhaps being a new facility
           | meant they just needed new vehicles anyway so it made sense
           | to not buy gas.
           | 
           | But once they started appearing they kept getting more
           | common.
        
       | londons_explore wrote:
       | I want to see a cost-benefit analysis to the shareholders from
       | this move.
       | 
       | Does Amazon hope that this investment in EV's and EV
       | infrastructure will put them in a good position to sell EV's at
       | some future point?
       | 
       | Maybe it'll give them a few years of de-facto monopoly in some
       | cities/states that pass laws requiring all deliveries be carbon
       | free?
       | 
       | Maybe being top of 'low carbon' company lists alone is worth it
       | if that means they attract environmental conscious shareholders?
       | 
       | Maybe this is cheap positive PR which is cheaper than just
       | spending an equivalent amount on adverts?
       | 
       | For a company so laser focussed on financial efficiency, the move
       | to EV's doesn't seem to make a lot of sense.
        
         | londons_explore wrote:
         | If they saved a bit of money on EV delivery vans and instead
         | spent a little more on toilets[1], it would probably be far
         | better use of money to buy good PR...
         | 
         | [1]: https://www.bbc.co.uk/news/world-us-canada-56628745
        
         | roughly wrote:
         | EVs are cheaper per mile than ICE, with the notable drawbacks
         | that the range is lower, the refill time is longer, and the
         | batteries mean the vehicle weighs more. None of those 3 matter
         | for Amazon deliveries - they're doing local deliveries (in stop
         | & go traffic, where the efficiency benefits of EVs are even
         | more pronounced), they sit in one place overnight, and for
         | cargo vehicles the weight difference isn't as much of an issue.
         | Amazon's got a history of investing in long-term logistics
         | projects (there was an article here a while back about their
         | investment in shipping paying off during COVID), so I'd imagine
         | they've penciled this out and are doing it for financial
         | reasons. The company is notoriously focused on financial
         | efficiency, but not necessarily short-term financial
         | efficiency.
        
           | londons_explore wrote:
           | They may be cheaper per mile, but I doubt they are cheaper
           | per delivered package when you take into account the purchase
           | price of the vehicle at amazons 5.3% corporate bond rate
           | (effectively the cost-of-money). The Rivian+EV charger
           | probably costs ~$100k, whereas a regular mercedes would cost
           | $60k.
        
             | roughly wrote:
             | Again, I'm sure that's something that Amazon's famously
             | meticulous finance people missed in their calculations.
             | What do you think the payoff horizon is for that kind of
             | purchase for them?
        
             | Sakos wrote:
             | They're doing it, so obviously they think it makes
             | financial sense. And considering how insanely successful
             | and good Amazon is in logistics and online retail, I'm
             | inclined to believe they know what they're doing over some
             | random HNer who probably doesn't know the first thing about
             | the topic. What's your field exactly? Moreover, where are
             | you consuming your opinions about EV from?
        
             | throw_nbvc1234 wrote:
             | They're also custom made vehicles for delivery use case
             | [1]. And they're also still a major shareholder in the
             | company.
             | 
             | And long-long-term maybe some kind of integration with Zoox
             | for an tsla/uber like delivery experience (with drones?).
             | 
             | [1] https://youtu.be/3CWCqJl0BEs
        
             | bombcar wrote:
             | Even if all that is correct, 300 miles a day or so could
             | eat up a $40k difference really fast (gas alone could be
             | $60 a day, or $15k a year - so even baking in the cost of
             | electricity you could save the difference in only a few
             | years).
        
             | MBCook wrote:
             | Over what timeframe?
             | 
             | Are they more expensive year one? Sure. New vehicles +
             | chargers + infrastructure upgrades.
             | 
             | Year 5? Maybe it's paid off. Energy costs, brake pads, no
             | oil changes or other frequent maintenance.
             | 
             | When you refresh the EVs the infrastructure is still there,
             | that's one time. Gas prices go up? Your investment looks
             | even better. Carbon tax appears? You're golden.
             | 
             | Amazon must know it's worth it. You don't spend that kind
             | of money for good PR alone.
        
             | rsynnott wrote:
             | Not sure about the US ones, but in Ireland they seem to use
             | Mercedes eSprinters. These cost about 45k after grants (the
             | new version, with a significantly bigger battery, is more
             | like 55k, but I think they're on the old one). A normal
             | Sprinter is more like 30k. It's not a huge difference,
             | given the fuel cost diff.
        
             | Marsymars wrote:
             | How could it be cheaper per mile and more expensive per
             | package if the packages per mile is equivalent?
        
         | megaman821 wrote:
         | Even if it was more expensive, it could still make sense. It
         | could be a hedge against a forecasted rise in gas prices. They
         | could be planning to add power generation and get long-term
         | price stability. They could believe stricter regulations over
         | emissions are coming in a lot of their markets.
        
         | rsynnott wrote:
         | Last-mile delivery vans are a pretty good use-case for EVs;
         | they're relatively cheap from a capital perspective (they don't
         | need huge batteries; they are not typically travelling hundreds
         | of km/day) and they're way, way cheaper to fuel.
        
         | 0x457 wrote:
         | For starters, they own Rivian, that makes those vans.
         | 
         | You can ignore any environmental impact, the main driver for
         | this is that it's much cheaper to operate an EV van for last-
         | mile deliveries.
        
           | thrill wrote:
           | Amazon owns 17% of Rivian.
        
             | 0x457 wrote:
             | Yes, you're right. For some reason*, I thought they have
             | bigger control over it. That said, they're the top
             | institutional investor into Rivian.
        
       | adolph wrote:
       | Please don't tell me the author believes "Amazon had to learn how
       | to . . . call the power company." Sure the folks at fleet
       | services are different from AWS, warehouses, etc. in the big
       | picture all of Amazon is devoted to transforming electricity into
       | valuable services. Maybe the question is whether or not Amazon
       | sees value in taking over the power companies jobs.
       | 
       |  _To get there, Amazon had to learn how to pick up the phone and
       | call the power company. Electric utilities, which to that point
       | primarily dealt with electric vehicles through powering the odd
       | home car charging setup, encountered a new type of customer in
       | Amazon._
        
         | sircastor wrote:
         | I think the point the author is making here is that calling the
         | electric utility about charging dozens or hundreds of vans is
         | different than checking in to make sure your home setup doesn't
         | violate utility policy.
         | 
         | Amazon is very often in a position to dictate terms of an
         | agreement, but here they needed the utility's assistance.
         | Amazon had to figure out how to negotiate the landscape.
        
           | MBCook wrote:
           | The article even mentioned the difference involved. You buy a
           | warehouse you might need 50 or 100 KWh. Everyone planned for
           | that when the facility was built.
           | 
           | Want to charge 200 vans? Now you're talking megawatts. You
           | have to talk to the utility about upgrading their lines and
           | stations and such.
           | 
           | "Hi. PG&E? We want to 100x our overnight power usage! That's
           | good right?"
           | 
           | That's not a normal call they'd have had to do before.
        
       | clows wrote:
       | What entity is the Largest Nonprivate EV Charging Operator in the
       | US?
        
         | chrisbolt wrote:
         | Probably ChargePoint: https://www.edmunds.com/electric-
         | car/articles/largest-ev-cha...
        
           | 0x457 wrote:
           | Those numbers are very inflated, tho. A lot of Charge Point
           | locations aren't open to the public. Some Ikea stores in the
           | US use them to charge delivery vans, and those aren't open to
           | the public.
           | 
           | I wouldn't be surprised if Tesla has more public chargers
           | than anyone else on this list.
        
             | Marsymars wrote:
             | It does specifically say "public" in reference to the
             | ChargePoint locations.
        
       | xyst wrote:
       | Like AWS, soon EV owners will be charging largely on Amazon owned
       | charging infra
        
         | tech_ken wrote:
         | AWS was built from the start to be a sold product, whereas it
         | sounds like this massive charging network is purely internal.
         | Seems like a very big difference between wiring up your
         | warehouse lots for charging, versus building power
         | infrastructure across the country.
        
           | MBCook wrote:
           | I agree. Plus level 2 is what you want for overnight or tiny
           | top-ops if you're going to be in a store for a while.
           | 
           | You don't want it for road trips or in place of a home
           | charger. It's too slow. You want DC fast charging.
           | 
           | But for something like Amazon who has vans sitting overnight
           | it's much cheaper and more than adequate.
        
           | robbieboy wrote:
           | EC2 was developed first for Amazon's internal infrastructure.
        
       | user90131313 wrote:
       | Elon vs Bezos race is the real reason for this right?
        
         | xeromal wrote:
         | Bezos isn't the CEO
        
           | fragmede wrote:
           | He's executive chairman of the board.
        
             | xeromal wrote:
             | That's correct
        
           | speedylight wrote:
           | He owns 9% of the company.
        
       | chintan wrote:
       | Imagine the amount of solar they could put on the roof tops of
       | those warehouses to offset the costs
        
         | sircastor wrote:
         | It would be interesting to know what the net gain is. Obviously
         | there is the materials and labor cost of installation, but then
         | you also have the battery cost. I assume most of the trucks are
         | out during the day, so you need batteries to store the
         | generated power until the truck can be charged at night.
         | 
         | And does Amazon own the warehouses outright, or do they lease
         | them?
        
           | bsder wrote:
           | > I assume most of the trucks are out during the day, so you
           | need batteries to store the generated power until the truck
           | can be charged at night.
           | 
           | Why not just double your fleet size instead?
           | 
           | That's a bit extreme, but this is the kind of optimization
           | that your bean counters are good at. You probably don't need
           | to double your fleet but just keep enough that you can shift
           | the consumption curve or take advantage of price changes.
        
         | ctvo wrote:
         | Shit man, jeff@amazon.com and let him know.
         | 
         | (Not private thank you very much)
        
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