Green Mobility For Rural E-Commerce: Feasibility of Electric Two-wheelers in Last-Mile Logistics
As e-commerce rapidly expands into rural India, the last mile is emerging as a critical test of cost, sustainability, and inclusion. This report examines the transformative potential of electric two-wheelers (E2Ws) in rural last-mile delivery, assessing their acceptability, feasibility, and long-term viability. It shows how E2Ws can offer a compelling alternative to conventional vehicles, delivering lower operating and maintenance costs, reducing emissions, and generating wider socio-economic benefits, including employment opportunities and improved gender inclusion in the logistics sector.
The analysis is anchored in insights from an on-ground pilot, supplemented by secondary research, and primary consultations with key ecosystem stakeholders, including OEMs, delivery partners, investment banks, e-commerce platforms, and policymakers. It offers practical pathways for policymakers, platforms, and investors to scale electric last-mile delivery where it matters most.
Key Insights
- In rural India, delivery vehicles are livelihoods – not short-term assets
Subscription models raise long-term costs. Ownership or loan-based purchases offer better value. Leasing to own models works best. - Infrastructure is the binding constraint
Lack of home charging and public infrastructure disrupts operations. Dedicated rural charging hubs are critical.
- Access alone is not enough – ownership pathways matter
Shared ownership through SHGs, cooperatives, and corporate-backed fleets can unlock women’s participation.
- Flexibility enables participation
Inclusive training, local servicing, and flexible work hours enable sustained adoption by including women as part of the solution.
- Demand-based hiring pushes risk onto drivers
Aggregator-led or platform-owned fleets can lower risk and accelerate scale.
