Electric vehicles (EVs) are transforming the way we think about all types of transportation. While the transition to electric passenger cars receives most attention, EVs are also making inroads into the commercial sector – particularly among fleets. Everyone from retail and delivery services, to rental car companies, to municipalities are beginning to get onboard. 


This shift is driven by a multitude of factors, including cost savings, improved operational efficiency, long-term resilience, and employee benefits. As more and more fleets consider making the switch – or expanding upon their current approach – these are the key reasons why fleets are some of the best applications of EV technology. 


1. Cost Savings 
While EVs are typically more expensive upfront, the switch will ultimately benefit the bottom line. One of the most compelling reasons for businesses to transition to EVs is the reduction in long-term operating and maintenance costs. Unlike traditional internal combustion engine (ICE) vehicles, EVs have fewer moving parts, which results in fewer breakdowns, less downtime and decreased expenditure on repairs. Plus, EVs don’t require oil changes and have regenerative braking systems that extend the lifespan of brake components, saving on additional maintenance costs over time.

Electricity, as a fuel source, offers several advantages over gasoline or diesel. Electricity prices tend to be more stable, predictable and resilient to market shocks, providing fleet operators with greater budgeting accuracy. Additionally, electricity is often cheaper per mile traveled compared to fossil fuels, resulting in savings for businesses that make the switch to electric.

To further encourage the adoption of EVs, the U.S. has introduced a variety of tax incentives, rebates and subsidies. The Clean Commercial Vehicle Credit, as designated within the Inflation Reduction Act (IRA), lets businesses claim $7,500 for vehicles under 14,000 pounds and $40,000 for all other vehicles. In addition to federal incentives, many states offer their own subsidies – all of which not only lower the initial acquisition cost, but also contribute to long-term cost savings.

2. Improved Business Operations and Efficiency 
On the EV infrastructure side, fleet operators stand to benefit from some of the key differences between the experience of charging their EV fleet vs. fueling their gas-powered vehicles, because electrification aligns extremely well with existing fleet patterns. Most fleet EVs follow a predictable, set schedule, and many sit in a depot overnight, all of which is ideal when thinking through the buildout of a fleet charging infrastructure. 

Because of this alignment, time is one benefit. EVs can be easily charged at the depot and ready to go in the morning – making the fueling process part of the overall operational process to maximize productivity. Plus, the fact that EVs require less overall maintenance yields the same overall result: more time on the road. 

Additionally, increasingly smarter, more advanced charging infrastructure and software solutions are providing fleet operators with valuable insights and visibility they do not get with gas-powered vehicles – enabling them to make data-backed decisions, such as optimizing charging schedules to reduce energy costs. 

3. Employee Benefits
In addition to the significant financial and operational advantages, transitioning to electric can benefit your employees as well. EVs offer significant improvements in Noise, Vibration, and Harshness (NVH) levels compared to traditional ICE vehicles, which can have positive effects on employees’ overall well-being – leading to increased job satisfaction and boosted morale.

The absence of an internal combustion engine results in a quieter, more comfortable environment for fleet drivers during long hours on the road. Plus, the quietness has a unique safety benefit. With minimal engine noise, fleet drivers can more easily detect and respond to their surroundings, including pedestrians and other drivers. And a smoother, less jarring journey can also help reduce physical fatigue over the course of a shift, allowing fleet drivers to maintain better focus.



As the benefits of EVs – on all fronts – become increasingly evident, fleet operators have a compelling case to electrify their operations. Lower operating and maintenance costs, stable and cost-effective energy sources, and government incentives all contribute to cost savings. Meanwhile, ongoing technological advancements and improved operational efficiency help position businesses for long-term resilience and success. Not to mention it’s a win-win for employees as well. And while most everyone knows EVs are better for the environment, ultimately, fleet electrification – wherever possible – just makes the most economic sense from a business perspective.