JUNA - A joint venture into electrification of the logistics industry
In the transition to sustainable logistics, the decarbonization of trucking is a crucial milestone. Scania, a leader in heavy-duty vehicles, and sennder, a digital freight forwarder, joined forces to launch JUNA, a joint venture aiming to accelerate the adoption of electric trucks through a circular business model, where electric trucks are offered as a turnkey service.
The challenge
Despite making up just 2% of vehicles on Europe's roads, trucks generate 25% of road transport emissions. Battery electric trucks (BEVs) are emerging as the dominant zero-emission solution to tackle this problem, but the widespread adoption of electric trucks faces significant hurdles, like high upfront costs, limited charging infrastructure, and uncertainties regarding vehicle lifespan and residual value.
These challenges prevent many fleet operators from investing in electric vehicles, slowing the industry's progress toward sustainable logistics. To tackle these challenges, Scania and sennder launched JUNA, which addresses these challenges by offering electric trucks as a service.
The solution
JUNA's Electric Truck-as-a-Service solution centers on a circular business model designed to mitigate the barriers to electric truck adoption. Instead of purchasing, freight operators pay per use on electric trucks, reducing upfront costs and allowing for flexible fleet management. This way customers are only paying for the kilometers they need, while retaining the possibility to scale their freight operations if needed.
By offering a comprehensive package that includes premium electric trucks, maintenance, insurance, analytics services and end-of-life processing for batteries, JUNA provides a seamless transition to electric mobility for logistics companies. This solution not only reduces the financial risks associated with purchasing electric trucks but also ensures the optimal utilization and longevity of each vehicle component, further promoting circular economy principles.
The business model
JUNA operates a flexible pay-per-use model, where customers pay for a suite of services. With this operating model, JUNA retains ownership of the vehicles and their materials. This enables JUNA to apply circular principles, like extending the lifetime of the vehicles and processing the batteries at end of life.
Developing JUNA, Scania and sennder needed to find the right solutions for financing, charging infrastructure, cost structures and efficient operations. A joint venture proved beneficial in this, as together Scania and sennder were able to accelerate the development of new business in a symbiotic relationship. Scania provided the needed electric truck technology, while sennder provided their digital technologies and platform-based freight forwarding solutions.
The benefits for the customer
By subscribing to JUNA's Electric Truck-as-a-Service, customers gain several advantages:
Cost Efficiency: Pay-per-use business model and comprehensive services reduce capital expenditures.
Sustainability: Access to electric trucks accelerates the decarbonization of trucking and the circular business model promotes resource efficiency.
Reliability: Professional maintenance and support ensure consistent vehicle performance.
Flexibility: Leasing arrangements allow for fleet scalability in response to market demands, mitigating the risk of unused capacity.
Fact sheet: Scania
Industry: Heavy vehicle manufacturing
Annual revenue: 216 BSEK
Founded: 1911
Employees: 59 000
Launch of circular business model: 2023
Phase of circular business model: Scale up
How was the solution developed: Joint venture