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Volta Trucks disrupting the truck industry with their revolutionary business model

Written by Kfir Kedem - September 09, 2020

Edited by Asaf Kedem

Swedish truck manufacturing startup redefining the truck manufacturer’s business model. Unlike traditional truck manufacturers, Volta Trucks are not selling their trucks directly to fleet owners. Instead they lease their trucks out for a set monthly fee and guarantee to take care of any needed maintenance. This model is called “Truck as a Service” or “TaaS” for short. They will begin the production of 500 trucks in 2022 in the UK. Before production begins, postal giant DPD will conduct a pilot program with their trucks. Volta Trucks have reportedly said that they have seven other customers.

Their truck will be called the Volta Zero. Other than redefining the industry standard business model, Volta are on a “mission to manufacture the world’s most sustainable truck.” Other than producing an electric vehicle, Volta are also focused on making the body of the vehicle sustainable. The 16-tonne truck’s bodywork will be made out of naturally grown flax fiber and biodegradable resin.

The truck is targeted towards inner-city distribution and will have a driving range of 125 miles on a single charge.

Auto Trendy’s take:

Most businesses that are selling products are now moving towards service plans to continue the increase of their income. For the past few years, pretty much all truck companies were selling their wireless diagnostic services for this reason. Additionally, traditional truck manufacturers make the majority of their profits from selling parts and maintenance services. It will definitely be interesting to see how major this disruption can be to the market and if traditional truck manufacturers will switch to this new business model or stick to their more traditional income methods.