Ikea expands EV partnership with Bolt following Series B investment

Bolt Logistics EV truck
Plans for an expansion into the United States are currently underway.

E-commerce fulfillment and delivery provider Bolt Logistics has partnered with Ikea Canada for the deployment of 30 electric vehicles (EVs) across the country.

Founded in 2017 as Second Closet, Bolt initially focused on providing a platform for consumer storage. The company rebranded in 2021, charged with $20 million in capital alongside a move into the B2B logistics space, repurposing its physical storage spaces for fulfillment and last-mile delivery.

The investment arm of Ingka Group, and Ikea’s main retailer, bought into Bolt in November.

Bolt’s initial fleet of zero emission delivery trucks have hit the road as the company anticipates to deploy more vehicles across British Columbia, Québec, and Ontario this year, with plans to expand into the United States in the coming months.

The company currently has 10 operational EV trucks in its fleet, with the other 20 still being manufactured. This initial group of vehicles has offset 170,000 kg of CO2 per year, with Bolt intending to increase the number to over 1.2 million kg by 2023.

Greenhouse gas emissions produced by the transportation sector in Canada reached 217 million metric tonnes of carbon dioxide equivalent in 2019, according to data published by Statista.

Bolt says its partnership with Ikea will help bring both companies closer to its carbon footprint minimization goals. Bolt aims to be carbon negative by 2023, while Ikea strives to reach 100 percent zero-emission deliveries by 2025.

“With transportation being one of the largest contributors of the global climate crisis, Ikea Canada is committed to eradicating carbon emissions and electrifying its last-mile delivery service, utilizing the benefits of electric vehicles to further transform the market,” said Melissa Barbosa, head of sustainability at Ikea Canada.

Ingka Investments, the investment arm of Ingka Group and Ikea’s main retailer, bought into Bolt in November 2021 in conjunction with the delivery provider’s $115 million CAD funding round for its Series B round.

As Second Closet, Bolt previously raised $13.2 million in 2019 during its nationwide expansion across Canada. The startup secured just over $2 million in seed funding the year prior.

The deployment of Bolt’s fleet of 30 electric vehicles marks the first expansion of its partnership with Ikea post-investment. The retailer announced in April that it partnered with Bolt, who submitted a purchase order to Lion Electric for 15 heavy-duty zero-emission trucks.

Ikea and Bolt co-branded five tonne EV trucks that serviced last mile deliveries for Ikea locations in Boucherville, Etobicoke, and Richmond. In addition to its sustainable approach to transportation, Ikea provides EV chargers at all of its 14 locations in Canada.

Charlize Alcaraz

Charlize Alcaraz

Charlize Alcaraz is a staff writer for BetaKit.

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