Parcel delivery company DPD Ireland has launched its "Green Last Mile" initiative, which is a new scheme set up to deliver 1,000 parcels a day in Bettystown, Laytown and Drogheda using a double decker bus and ten electric bikes.
The "Green Last Mile" initiative is part of the company's Smart Urban Delivery commitment.
DPD said the CO2 saving from the new scheme is significant as it replaces ten diesel vans on the road, and at full capacity, can save 550Kg of CO2 emissions each week.
The company has turned a double-decker bus into a mobile depot that deploys ten electric bikes with mini trailers to provide a "green last mile" delivery in the more densely populated areas of the three towns.
The company said it was looking very closely to see how it can replicate the scheme's success elsewhere.
DPD sees electric vehicles as the future and launched the country's first electric depot in Dublin last year.
It plans to have over 160 electric vehicles on the road by 2025 and said it has has already delivered 90,000 parcels by electric vehicle in Dublin, with plans to deliver many more into the future.
The chief executive of DPD Ireland, Des Travers, said the new project is already having a massive impact on communities in the towns involved.
"Rather than having diesel vans driving into these urban areas, we are using electric bikes which really improves the delivery experience. It has really grown into a triple-win - it avoids CO2 emissions, it reduces congestion and it allows us to deliver parcels more efficiently," Mr Travers added.
DPD Ireland earlier this year plans to expand its operations nationwide and said it would create 700 jobs before the end of the year.