IKEA Australia is accelerating its push toward 100 per cent zero-emission home deliveries with the addition of four Volvo FL long-range electric trucks and a new leasing partnership with CarBon Leasing.
The initiative is designed to make electric vehicles more accessible to delivery contractors and extend zero-emission deliveries beyond metropolitan areas into regional postcodes.
Since 2019, IKEA has worked with ANC Delivers, All Purpose Transport, and Kings Transport to roll out home deliveries using electric vehicles across Australia.
Alexandra Kelly, Zero Emissions Project Leader for IKEA Australia & New Zealand, said the new model directly supports small business operators who make up the majority of delivery drivers.
“It’s not well known that most (98%) of delivery vehicles are owned by small businesses or subcontractors, not delivery companies or retailers,” Kelly said.
“Electric vans and trucks remain significantly more expensive than diesel alternatives, which is a major challenge for drivers who operate with low margins.”
“The Volvo electric trucks, designed for longer distances, will be leased to ANC Delivers contractors through CarBon Leasing. ANC Delivers has been a valued partner to IKEA in our transition to zero emissions, and their continued support with this new pilot removes the barrier of upfront vehicle costs for contractors. By offering a leasing package as an attractive alternative to diesel trucks, drivers can access electric vehicles without financial risk.”
According to IKEA, almost 84 per cent of its truck orders in October 2025 were completed using zero-emission vehicles — nearly all metro-area deliveries.
“At IKEA, we embrace innovation and experimentation, with sustainability at the core of our decision making,” Kelly said. “With this new business model, we aim to prove that zero emission delivery is achievable today for retailers, with electric vehicles that can go the diesel distance.”
Under the arrangement, IKEA owns the trucks while CarBon Leasing manages their operation and leasing. The structure keeps costs comparable to diesel vehicles, making the transition financially feasible for owner-operators and small delivery businesses.
Scott Gillespie, Managing Director of CarBon Leasing, said the collaboration showed how global sustainability goals could be achieved through local innovation. “Our model removes the upfront cost barrier and supports drivers with everything from vehicle sourcing to charging and CO₂ reporting,” he said. “Making zero-emissions delivery financially viable for small operators isn’t just good for business, it’s essential for Australia’s transition to cleaner transport.”
The new Gen 3 Volvo FL electric trucks can travel up to 450 kilometres per charge and carry a payload of up to 5,500 kilograms, meeting the needs of regional delivery routes.
“It’s been fantastic to see the evolution of electromobility here in Australia,” said Martin Merrick, President and CEO of Volvo Group Australia.
“Since the first electric FL arrived on our shores in 2020 this truck has only gotten better. Our Australian electric truck fleet has now clocked up well over 1 million kilometres proving that electric is indeed a reality for transport operators looking to reduce emissions and noise in urban areas.”
IKEA’s partnership with Volvo and CarBon builds on a $4.5 million national investment in charging infrastructure to improve accessibility for its service providers. In 2022, just 5 per cent of IKEA’s truck orders were made via zero-emission vehicles; by October 2025, that number had surged to 84 per cent.
“This partnership with Volvo and CarBon is a bold step toward our goal of 100% zero emissions deliveries, demonstrating that with collaboration and innovation, sustainable delivery is not just a future vision, it’s happening now,” Kelly said.
“However, to truly scale zero emissions delivery into outer metro and regional areas, we must overcome one of the biggest remaining barriers: charging infrastructure. Addressing this challenge will require coordinated investment and action from government, industry, and the broader transport ecosystem.”
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