TEG and Hived launch a fully electric parcel delivery network reshaping UK logistics

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TEG, the fintech-enabled logistics platform, is partnering with Hived, the UK’s first fully electric parcel delivery company, to offer logistics providers access to emission-free delivery using 44-tonne electric HGVs. The move promises up to 76 percent emissions reduction per parcel and supports 99 percent on-time delivery performance. Through integrated carbon tracking, compliance, and payment tools, the partnership seeks to remove common barriers to electrified transport.

A sector under pressure to decarbonize

The transport and logistics sector in the UK continues to face increasing demands to transition away from fossil fuels. Heavy goods vehicles make up a significant share of road freight emissions. In 2023, there were fewer than 1,000 electric HGVs operating across the UK. While this rose to just over 1,270 in 2024, the total remains a fraction of the broader fleet, reflecting how early-stage the transition still is.

By offering immediate access to electric capacity via a digital platform, TEG allows third-party logistics providers to deploy zero-emission vehicles without making long-term investments. This on-demand access could prove especially valuable for smaller providers that may not have the capital or operational scale to electrify on their own.

However, infrastructure is still a major constraint. Widespread electric freight adoption will require significant grid upgrades, high-capacity charging depots, and regulatory support. Industry analysis estimates that full-scale electrification of UK freight transport could demand around 32 terawatt-hours of electricity annually. This is roughly equivalent to the consumption of some UK regions. Without sufficient charging infrastructure, electrification risks remaining fragmented and geographically inconsistent.

Competitive and commercial pressures are shifting

Sustainability has already become a procurement differentiator in the sector. A recent TEG white paper showed that 67 percent of logistics buyers consider it a top challenge when selecting providers. For carriers that still rely on diesel, the partnership between TEG and Hived introduces competitive pressure. Shippers now have a clearer route to meet Scope 3 emissions goals by choosing cleaner capacity, backed by verifiable tracking and performance data.

The shift is also visible at the top of the market. Amazon, for example, has committed to electrifying its delivery fleet and recently placed large-scale orders for battery-powered trucks in the UK, including Mercedes-Benz and Volvo electric models. The move signals growing confidence that electric freight is no longer a niche proposition, but a viable route for decarbonizing at scale.

In parallel, Hived has begun to expand its offering from urban last-mile services into long-haul electric transport. This includes the use of 44-tonne HGVs for mid-mile and regional logistics. By combining these heavy-duty vehicles with urban electric vans, the company is building a layered network that reduces dependency on diesel without compromising reliability.

Platform models enable wider adoption

A key enabler in this development is the platform architecture offered by TEG. By integrating Hived’s electric fleet into a single logistics interface, users gain access to zero-emission services through familiar workflows. The platform automates carrier onboarding, ensures regulatory compliance, and embeds payments, which reduces the complexity that has historically slowed down innovation in transport.

This model supports not only emissions reductions, but also faster procurement and greater agility in responding to customer demand. As more shippers look for low-carbon options, platforms that can simplify access to greener carriers may define the next competitive advantage in UK logistics.

The long-term shift to electric freight will still face infrastructure, policy, and operational hurdles. But partnerships such as this one demonstrate a shift away from one-off pilots or limited trials. Instead, the focus is moving toward scalable, commercially integrated solutions that fit into existing logistics frameworks.

A signal of where the market is going

The TEG and Hived alliance offers a practical path to reduce transport emissions without forcing providers to reinvent their operations. While challenges remain, it marks a clear step toward a logistics sector where sustainability is embedded, not bolted on.

Sources:

TEG