SUSTAINABILITY  /  E-COMMERCE

By Michael Chu | March 5, 2025

Electric tricycles are gaining popularity due to their low carbon emissions, reduced noise, and high maneuverability in crowded urban areas. Discover why this innovation is set to revolutionize logistics in Taiwan.

• In Taiwan, retailers and logistics companies are adopting electric tricycle fleets to meet the fast-paced demands of e-commerce.
• With lower carbon emissions and reduced noise, electric tricycles and EVs align with the Taiwanese government's vision for a sustainable future in transportation.
• Retailers also benefit, with e-tricycle deliveries helping to highlight a wider commitment to sustainability to customers.

To meet carbon reduction targets, governments around the world are actively promoting carbon-neutral transportation and sustainable logistics. Keeping pace with the global net-zero trend, Taiwan is putting significant effort into transportation carbon reduction, setting a goal of 100% electrification of new vehicles by 2040. 

According to a report by Taiwan’s Ministry of Transportation and Communications, the transportation sector accounts for about 12.8% of total carbon emissions, with road transport responsible for nearly 97% of emissions within the sector. 

A survey by the World Economic Forum predicts that the rise of e-commerce will lead to a 36% increase in freight vehicles across the top 100 global cities, a 32% rise in associated emissions, and a 21% increase in urban traffic congestion by 2030. 

Electric tricycles are gaining an increasing share in retail logistics due to their low carbon emissions, low noise, and high maneuverability in congested urban areas. These advantages go beyond sustainability. Taiwan’s EVs and e-tricycles also help solve some of the challenges facing urban logistics and road mobility. 

Below, I explore three key benefits of electric tricycles that are transforming Taiwan’s logistics landscape.

1. Navigating urban congestion for enhanced on-time deliveries

Making urban delivery more efficient means reducing travel times, congestion, and mileage. For cities, this results in lower environmental impact, reduced carbon emissions, and decreased energy consumption. 

For businesses, it boosts market competitiveness, lowers costs, and fulfills the growing demand for corporate social responsibility and green supply chains.

In Taiwan, traffic congestion is a challenge. According to global traffic congestion rankings by Dutch satellite navigation company TomTom, five Taiwanese cities – Taipei, Taoyuan, Taichung, Tainan, and Kaohsiung – are ranked among the most congested. 

With the growth of e-commerce, consumer expectations for faster deliveries have increased, but Taiwan's narrow, busy streets create uncertainty around delivery times.  

In this congested urban environment, electric tricycles provide a viable solution. Their superior maneuverability allows them to navigate traffic jams more effectively than larger vehicles. Compared to traditional delivery trucks, electric tricycles can reduce delivery times and improve the efficiency of last-mile logistics. 

Based on data from our Taiwan operations, electric tricycles can improve productivity, boosting efficiency by 5% to 6% in terms of stops per hour and on-road performance, compared to previous vehicle routes. 

This improvement is particularly valuable for industries dealing with small, time-sensitive packages, as the increased efficiency allows for more effective and timely delivery.

2. Aligning with government carbon reduction initiatives

Last-mile delivery is the final and most crucial stage of the supply chain, but it directly impacts air quality in residential areas due to carbon emissions. The Taiwanese government is actively promoting carbon reduction policies, offering subsidies to encourage the adoption of electric vehicles. 

This has accelerated the electrification of transportation in Taiwan and spurred manufacturers to develop more vehicles suitable for last-mile delivery.

Since early 2024, FedEx has incorporated the Rapide 3 electric tricycle into its ground fleet. With a cargo capacity of up to 200kg, it offers four times the load space of two-wheeled scooters and reduces replenishment trips to the warehouse by 14%.

At FedEx, we deliver an average of 1,770 packages per month using these vehicles, reducing 35kg of carbon emissions monthly. Additionally, electric tricycles help reduce fuel costs, making last-mile delivery more cost-effective.

3. Improving customer satisfaction 

As awareness of sustainability grows among consumers, greener delivery options are becoming increasingly important. According to a Deloitte report, 34% of consumers consider brands with sustainable supply chains more trustworthy. 

Another survey reveals that 54% of e-commerce consumers are willing to pay an additional 5% for sustainable delivery options, while 76% are willing to wait an extra two days to support businesses that adopt sustainable delivery. 

The definition of sustainable consumption for consumers has expanded beyond sustainable products and packaging materials to encompass the entire supply chain.

With their potential to offer solutions to local challenges, electric tricycles can play a crucial role in Taiwan's logistics industry. Choosing more sustainable transport methods not only meets market demand, but also enhances brand value and customer satisfaction. 

Looking ahead, a wave of greener transport solutions can help propel Taiwan toward more sustainable cities and urban mobility for both citizens and businesses.