Canoo Inc. (GOEV), a high-tech company dedicated to advanced mobility, is quietly making significant strides in the world of electric vehicles (EVs). While not yet a household name like Tesla, Canoo is attracting attention from some of the biggest players in the U.S., including Walmart, the U.S. Postal Service, the Department of Defense, and even NASA. So, what makes these major organizations choose a relatively new company? Canoo’s secret lies in its scalable technology, which it claims sets it apart.
The company believes that electric fleets, especially for commercial and government use, offer lower total cost of ownership and eliminate the need for costly fuel. But Canoo takes it a step further, boasting a design that utilizes one-third fewer parts compared to traditional internal combustion engines (ICEs). This streamlined approach significantly reduces maintenance needs, thanks to Canoo’s advanced computer architecture. The company’s EVs can be remotely diagnosed and repaired via over-the-air (OTA) software, making maintenance almost a non-issue. Canoo also provides a unique warranty that covers up to eight years, a rarity in the automotive industry.
Canoo is particularly focused on the last-mile delivery market, the final step in the delivery process, with its fully electric Lifestyle Delivery Vehicles (LDVs). These LDVs are specifically designed for optimized delivery, featuring customized cargo space and a cabin tailored for the last-mile delivery experience. Canoo uses innovative steer-by-wire technology, eliminating moving parts and cabin intrusion, resulting in a more spacious interior, improved driver ergonomics, and a panoramic window for enhanced road visibility. The LDV is engineered for high-frequency stop-and-go deliveries and quick vehicle-to-door drop-off, ideal for delivering groceries, food, and meals.
Walmart’s recent partnership with Canoo is a testament to the LDV’s capabilities. Walmart has agreed to purchase 4,500 all-electric delivery vehicles from Canoo, starting with the LDV, with the option to expand the purchase to 10,000 units. These vehicles will be used to deliver online orders in a sustainable manner, aligning with Walmart’s goal of achieving zero emissions by 2040.
Beyond Walmart, Canoo is also making significant inroads with the U.S. government. The U.S. Postal Service has purchased six right-hand drive versions of the LDV 190 as part of its initiative to modernize and electrify its delivery fleet. Canoo delivered these vehicles in May, and the USPS is currently using them for mail routes. The USPS is also investing $40 billion to upgrade its processing, transportation, and delivery networks, which could lead to further purchases from Canoo if the initial deployment is successful. NASA has also acquired three Crew Transportation Vehicles (CTVs) from Canoo to transport astronauts to the launch pad for the Artemis lunar missions. The CTVs are specifically designed to carry astronauts in full gear, flight support crew, and equipment to the launch pad. Tony Aquila, Chairman and CEO of Canoo, expressed his excitement about being a part of the Artemis missions and delivering NASA’s first zero-emission vehicles for mission crew transportation.
Canoo’s commitment to sustainability extends beyond its electric vehicles. The company is also supplying batteries to the Department of Defense, specifically to the U.S. Navy. Canoo’s proprietary battery system is modular and adaptable, supporting various military applications and configurations. The batteries utilize 5kWh modules with 2170 cylindrical cells but can accommodate other form factors and cell chemistries. This expansion of the partnership with the U.S. Navy validates the technology and reliability of Canoo’s batteries. Canoo is also delivering the Light Tactical Vehicle (LTV) to the U.S. Army, showcasing its capabilities in both commercial and military sectors.
From fully electric vehicles for cargo, goods, and people transportation to wind and solar-powered batteries, Canoo is actively contributing to a greener future. While it may not be a household name yet, Canoo’s partnerships with prominent players indicate a company with promising potential. Investors looking for a sustainable and innovative player in the electric vehicle space should keep a close eye on Canoo’s future developments.
