Benefits of Electric Bikes for Delivery Businesses in India

Summary:

• Electric bikes save Rs. 4,150-5,750/month per bike vs. petrol, with payback in under a year given high delivery mileage.
• 3-year total cost of ownership favors electric (~Rs. 94,200-1,19,200) over petrol (~Rs. 2,66,000) even after accounting for the higher upfront price.
• Covers best e-bike models by use case, swappable vs. plug-in battery trade-offs, available subsidies (FAME II, state schemes), and a step-by-step fleet transition plan.

The backbone of the delivery economy based on two-wheelers is thousands of riders delivering every day for Swiggy, Zomato, Zepto, Blinkit, Amazon, Meesho, etc. Delivery aggregators say that a typical rider covers well over 100km a shift and earns about Rs. 200-300. This results in a lot of wear and tear on the daily used petrol engine which ends up at the mechanic within weeks. With 10-20 bikes in a fleet, that cost increases a lot and adds up quickly.

India's gig and platform economy, which is dominated by two-wheeler delivery riders, is estimated to be one of the fastest-growing segments of the workforce, with delivery and quick-commerce demand rising sharply year on year as more cities get 10-15 minute delivery coverage. That growth is exactly why fuel and maintenance costs, which scale directly with the number of bikes and shifts on the road, are becoming a bigger line item for operators than they were even two years ago.

One would assume that switching over to electric bikes would reduce costs a bit. In reality, the total cost of running a fleet of delivery bikes has changed completely. The primary reason for switching to electric bikes is financial, with the secondary reason being environmental. If you are looking to incorporate electric bikes for delivery in India or looking for the best delivery e-bikes, then the costs should be very easy to justify.

Comparing Daily Costs of Petrol Bike and Electric Scooter

For a fleet of ten bikes, the savings is Rs. 40,000 - 57,500 every month. This is not small money; it is a significant profit that is wasted every month at the petrol pump.

Total Cost of Ownership in 3 Years - The Complete Picture

Electric Bikes are costlier to buy, but after the subsidy, the costs are closer than they appear. The cost of a petrol bike will justify the purchase at the cheaper running costs in 12 to 18 months, but Electric Bikes will then have a far cheaper cost to operate.

Better Electric Delivery Options

• Best for starting a budget fleet with little upfront costs - Hero Electric Optima has a real range of ~82 km and costs Rs. 68,000 with a fixed battery
• Best for operations where charging downtime can't be afforded - Bounce Infinity E1 has a real range of ~85 km and costs Rs. 68,000 with a swappable battery
• Best for premium delivery riders with longer routes - Ather 450S has a real range of ~115 km and costs Rs. 1,20,000 with a fixed battery
• Best for heavy daily use, the range champ - TVS iQube (cargo mod) has a real range of ~145 km and costs Rs. 1,10,000 with a fixed battery
• Best when handling/loading cargo is more important than range - Piaggio Ape E-City has a real range of ~70 km and costs Rs. 1,80,000 with a fixed battery

Swappable Battery vs. Plug-in Battery - Which Is Better for Delivery?

Swappable (Bounce Infinity, Gogoro network)

• Swapping takes less than 2 minutes, and essentially no downtime occurs during the work day
• Charging infrastructure isn't needed. Riders simply swap at a station
• Swappable networks have to be in metros, with spotty service outside of Bangalore and Hyderabad

Plug-in (Ather, TVS iQube, Hero Electric)

• Charging is done overnight at depots, so no other scheduling is needed to have batteries ready for shifts
• Works best when fixed parking is available. A basic home charger in the range of Rs. 5,000-8,000 handles overnight charging with ease
• Full charging takes 5-10 hours, while Ather's grid point fast charging charges 80% in about 1.5 hours

In most Indian cities, overnight plugging at a depot is the more practical option. Rapid battery charging infrastructure has a long way to go, and rural areas and Tier 2 cities are more dependent on plugging infrastructure for the time being.

What Subsidies Will Be Available in 2025-26?

• FAME II provides subsidies of Rs. 10,000-15,000 for every EV two-wheeler. Eligibility varies by model, so check the FAME II guidelines.
• The Karnataka EV policy provides Rs. 5,000-10,000 subsidies for EVs used for commercial purposes.
• Maharashtra provides a subsidy of Rs. 10,000 for two-wheelers registered in the state.
• The goods and services tax (GST) is 5% for EVs, and 28% for petrol vehicles. For a fleet of 10 bikes, this constitutes a significant difference.

Check current policy as state schemes frequently change. Looking up policies from six months ago is not useful.

A Practical Approach to Transitioning to an Electric Fleet

The most common method to transitioning a fleet to EVs is doing it in small stages. The following steps outline this method.

1. Conduct a survey. Collect data instead of making estimations. What is the average daily and monthly mileage of each rider? What is the actual monthly cost of fuel and maintenance?
2. The actual data usually serves as the basis for a three-year cost analysis, so complete the analysis.
3. There is no cost to applying for FAME II and state subsidies, and most fleet operators miss the opportunity simply by not applying.
4. Test a fleet of 3-5 bikes on the daily most traveled routes to gather data on range and reliability along with feedback from users before making the full transition.
5. Estimate the cost of charging infrastructure. The cost for a fleet of 10 bikes is approximately Rs. 50,000-80,000 to set up chargers.
6. Scale the pilot based on results.
7. Or lease EVs through ONNBikes to avoid the capital expenditure and test the model first.

Use ONNBikes to Lease Your Delivery Fleet

ONNBikes enables businesses to operate commercial delivery fleet EVs through monthly leases and without the capital cost and balance sheet impact of a large fleet purchase. Currently operating in Bangalore, Hyderabad and Pune with plans to add more.

Lease your electric delivery fleet with ONNBikes, with a simple booking process and no deposit or other time consuming procedures.

Common Questions

Are electric bikes reliable enough to be used for 100km of delivery trips in a day?

Some electric bikes like the TVS iQube and Ather 450s have real world ranges of 145km and 115km, respectively, and can accomplish the 100km round trip easily. There are also electric bikes like the Bounce Infinity E1 that have swappable batteries that eliminate range concerns, as riders can swap batteries mid shift. The actual reliability of electric bikes is less of a concern and more the charging infrastructure that can be inadequate in some of the smaller towns.

How much do you expect to save in your delivery operations by switching to electric?

You can save an estimated 4,000-5,700 rupees in fuel and maintenance each month for each delivery bike making the round trip of 100km. Savings over 3 years, even accounting for the investment in the electric bike, are between 1.4-1.7 lakh rupees for each delivery bike. If you switch 10 delivery bikes to electric, that is a savings of approximately 14-17 lakh rupees in 3 years.

Can I lease electric bikes for my delivery operation from ONNBikes?

Yes, you can lease electric delivery bikes from ONNBikes for a month. This is offered in Bangalore, Hyderabad, and Pune. This is a good option for delivery operators that would like to test the delivery operations using electric bikes, but would like to avoid a capital investment in a fleet of bikes. Check ONNbikes.com to find more details on fleet leasing.