Payo, an e-commerce solutions provider, will be using electric vehicle (EV) cargo tricycles for deliveries of its sister company Agila Logistics and Delivery Express (Agila).

Prior to the introduction of e-vehicles, Agila has been using traditional motorcycles and vans powered by fossil fuels. Last year, Payo began employing sustainable measures and initiatives to promote environmentally-friendly logistics solutions. 

One of these is the integration of bike deliveries and switching to biodegradable delivery pouches. Payo is procuring electric vehicles that will be part of — and soon replace — Agila’s fuel-powered delivery fleet.

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“While it may cost more to introduce and maintain more sustainable policies and requirements, we look at this as an investment in our future as a company and as a community,” said June Cloma, managing director,  Payo.

Challenges of going green

Quoting a report by Bain & Company, Temasek, GenZero and Amazon Web Services titled “Southeast Asia’s Green Economy 2023 Report: Cracking the Code,” Payo said the Philippines has a large potential to become greener along with the rest of the region. However, key challenges have also been identified that hinder growth. These include inadequate charging infrastructure for electric vehicles, lack of a national sector roadmap as well as carbon emissions-centric policies and regulations.

“While there is still a lot of work to be done, Payo is doing its part and hopes to build a more sustainable logistics landscape by replacing its last-mile delivery vehicles for the long term., Cloma said.

Payo initially deployed three electric vehicle tricycles for the pilot run with the goal of transforming at least 50% of Agila’s fleet to electric vehicles by the end of 2024, and 90% soon after.

“Our vision for sustainability is not for our company alone, but for the rest of the community,” said Liron Gross, founder and CEO, Payo. “We believe that being sustainable goes beyond having a zero-plastic office and separating your trash. It’s also about innovation and finding different and better ways to do the same things. Hopefully, our collective micro efforts will have a macro impact on the logistics sector and more.”

Payo offers services to online retailers such as Shopify integration, warehousing, marketplace optimization, last-mile management, and live customer support, among others.