GM-owned startup BrightDrop will reach $1 billion in revenue by 2023
General Motors-owned BrightDrop is expanding rapidly as some of the world’s largest companies — such as Walmart, Hertz, FedEx and Verizon — have begun ordering its electric delivery vehicles and other delivery software products.
BrightDrop told investors on Thursday that it is on track to reach $1 billion in revenue by 2023. It is also set to generate up to $10 billion in revenue and 20% profit margins by the end of the decade. It says it is the fastest growing for a GM startup.
“We’re a tech startup with a subscription-based product offering backed by a global powerhouse — this puts us in a league of our own,” BrightDrop CEO Travis Katz said in a statement. “As we focus not only on electric vans, but also eCarts and software, we are confident that our full ecosystem of connected products and services will drive significant revenue and growth for years to come.”
Adding to BrightDrop’s coffers is its recent expansion into the online grocery sector, Katz said, where “we can take significant market share across multiple industries.”
On Thursday, BrightDrop also said it is hiring to help facilitate future growth, and jobs can be found at www.gobrightdrop.com. The company also unveiled a new product called BrightDrop Core. It is a subscription-based software platform designed to help customers better optimize their business.
In September, BrightDrop introduced another new product called Trace eCart. It’s a temperature-controlled cart that helps facilitate online grocery ordering and pickup by eliminating steps in the process. BrightDrop’s first customer will be grocery giant Kroger, which will begin using the cart in its e-commerce business later this year.
BrightDrop, which GM started in early 2021, offers two commercial electric delivery trucks — the Zevo 600, which resembles the big brown UPS-style truck, and a smaller Zevo 400 midsize truck. They will be built at GM’s CAMI Assembly facility in Ingersol, Canada, which opens this quarter. Katz has said that BrightDrop expects to produce 50,000 trucks a year there starting in 2025.
BrightDrop also offers the EP1, an electrically powered pallet that helps move packages to ease the burden on workers’ bodies, and mobile asset management for the EP1. There is software to provide location monitoring, battery status, remote commands to lock and unlock, and over-the-air updates of connected features.
The newest product, BrightDrop Core, is software that combines data generated from the Zevo and Trace products to give customers better visibility, insight and control over their operations. BrightDrop Core will be available early next year with an initial offering that includes a user portal, mobile productivity apps and digital driver experience to help improve driver efficiency in the field.
BrightDrop has received over 25,000 reservations for its electric cars and letters of intent from companies and already has vehicles on the road delivering.
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Contact Jamie L. LaReau: [email protected]. Follow her on Twitter @jlareauan. Read more about General Motors and sign up for our car newsletter. Become a subscriber.
