Medium Investment

Quick Package Co

ProHub Comment

This case requires a structured cost-benefit analysis comparing two vehicle types over their lifecycle. The key insight is the breakeven analysis: with a $10,000 annual cost advantage, electric vans initially lose because their 3-year useful life is shorter than the payback period. However, a technology breakthrough extending vehicle life to 4 years flips the recommendation, demonstrating how changing one parameter can alter the investment decision.

Estimated Time 15 minutes
Difficulty Medium
Source Cornell
50 / 100
Our client is a major delivery company in the United States. Quick Package Co. (QPC) is a national player with reach across the nation. QPC completes routine residential and commercial package delivery (like FedEx and UPS). Competing is a costly business these days and the company is facing a major decision about their vehicle fleet – should the company invest in a fleet of internal combustion engine (ICE “gas”) trucks or electric (EV) vans? Our client is looking for your guidance to help answer this question.

Clarifying Information

  1. Urban and local deliveries [not long-haul trucking]
  2. QPC recently invested in EV Trucks (for interstate logistics)
  3. Assume the physical size and capacity of the two kinds of vans are equivalent