TIP embraces electromobility

With more than 50 years of experience, TIP Trailer Services is a leading equipment and services provider for transportation businesses. As a strategic partner to its customers, it now offers electric light commercial vehicles for last mile delivery in Europe. TIP Deputy CEO, Arjen Kraaij, elaborates on TIP’s plans in an interview with Global Trailer.

TIP Trailers Services strives to deliver connected solutions while promoting sustainable supply chains in an urban environment that is increasingly characterised by strict regulations and zero emission policies.

With unique positioning in geographic, asset and service scope, TIP has expanded its portfolio to include electric Light Commercial Vehicles (eLCVs). This value proposition now includes the entire service spectrum from infrastructure planning, charging station and supervision to vehicle maintenance and more.
TIP Deputy CEO, Arjen Kraaij, details the company’s latest investments in electromobility.

TIP Deputy CEO, Arjen Kraaij.

Q: We understand that TIP is planning to introduce new vehicles to its fleet. What exactly do you have in mind?
A: Yes, that’s right. Starting in September 2021, we are offering our customers also electric light commercial vehicles (eLCVs). We are integrating around 300 vehicles into our existing fleets. These vehicles are available across Europe, with focus on France, Spain, Italy, Germany and UK. We will further expand the number of vehicles over time. A key component of our offering is the customized services we provide around the vehicles. We support our customers holistically in the integration of clean vehicles in their fleet – from the selection of vehicles and charging solutions to the planning and monitoring of infrastructure, vehicle maintenance and 24/7 roadside assistance. With this step, we are now expanding our portfolio into the area of sustainable last mile delivery and thus significantly increase the value chain for our customers.

Q: This is a significant step for a player that has been known primarily for lease and rental of heavy commercial vehicles. Why has TIP decided to take this step now?
A: Well, we see a growing demand from our customers for sustainable and smart solutions, especially in last mile delivery. In fact, the pressure from the authorities, but also from the public, is leading to a speed of transformation that no one could have imagined just two years ago. This market readiness, combined with the now truly mature technical solutions that eLCVs offer today, opens up a window of opportunity that we are seizing with full conviction.

Q: How does this decision fit into TIP’s strategy?
A: Our focus is to strengthen our leadership position by continuously delivering value to our customers around the world. This also includes helping to shape the transformation towards sustainable and intelligent freight transport, not only for our customers but also for ourselves. We are convinced that we have a socially and environmental responsibility. We see the integration of eLCVs as another step in a fundamental shift across our entire portfolio towards sustainable powertrains guided by smart services. At the same time, with our new service and asset offer, we can help our customers to sustainably transform their freight transport across their entire fleet. The TIP offer provides the first scalable solution with sustainable drive technologies at maximum flexibility and risk reduction with regard to investment and volume forecasting. This is how we are living our vision to be the trusted partner for our customers, delivering connected solutions and powering sustainable supply chains.

Q: Which customers will you target first with the new offering? Which market segments do you have in mind?
A: The market of our customers is changing and increasingly demands new solutions in the field of green and digital. This applies first and foremost to last mile delivery. We have therefore decided to diversify our portfolio once again with the introduction of the eLCVs and the associated service spectrum. Our offer is aimed at logistics operators looking for a reliable partner on the road to sustainable and green transport.

Q: What business volume are you aiming for with this step?
A: Not only driven by e-commerce, last mile delivery is a clear growth market. However, it is also a highly volatile market whose development is very difficult to predict. It is precisely this unpredictability in volume that we would like to mitigate with our offer for our customers. For us, this also means that we cannot predict the exact development of our decision down to the last detail. Right now, we expect that in the future the area of eLCVs will account for about five percent of our total turnover but the overall portfolio of clean vehicles will surely become significant over time.

Q: Are there plans to further diversify your portfolio in the area of last mile delivery, for example with eCargobikes or drones?
A: We see ourselves as a strategic partner for our customers. As such, we are always looking for the best solutions that we can offer our customers. With the introduction of eLCVs, we have once again expanded our offer and we will continue to do so in the future. So of course, further portfolio diversifications are conceivable for example with the extension of the eLCV range to larger capacities and other e-trucks sizes and alternative fuel vehicles – but especially drones are still a very long way off for us.