Vehicle electrification is paramount on the road to lowering global emissions. That’s why municipal transportation fleets, trucking companies, and delivery services are all exploring ways to transition from diesel to electric. One overlooked yet high-impact sector are school buses — which collectively run over 480,000 routes and 10 billion miles per year in the U.S. alone. Electrifying the school bus sector has the potential to deliver outsized climate benefits and meaningful health improvements for children, who are otherwise exposed daily to diesel exhaust—pollution emitted from about the height of a second grader in an exhaust pipe.
That's why it was fascinating to complete this case on Highland Electric Fleets - a Massachusetts-based startup with over $253 million in Series A equity, earned by pioneering its trademark “fleets-as-a-service” model. Highland's goal was to simplify the switch from diesel to electric buses for school districts, who didn't have the bandwidth to handle the transition on their own. In exchange for a fixed per-mile fee, Highland offered a fully integrated package that included electric buses, charging infrastructure, financing support, long-term maintenance, and even “vehicle-to-grid” optimization — enabling districts to sell unused energy back to the grid during peak hours. All of this took place without altering a school district's existing route schedule or fragile budgets.
In less than five years, Highland became the largest procurer of electric school buses in the United States—signing deals in over 30 states and six Canadian provinces while tapping into available grants and incentive programs across regions. That included a landmark contract with Montgomery County Public Schools in Maryland, the largest public school district in the country. While the up-front cost of an electric school bus could reach $400,000, Highland’s service model restructured the financial equation - making electrification feasible and affordable for districts looking to impact student health for the long-term future.
Writing this case was a great opportunity to explore the intersection of startups and climate action. Highland’s team brought together deep policy fluency, hands-on service, and a strong local presence—with sales reps deployed across the country—to turn a complex systems challenge into an actionable, scalable climate solution. Their approach invites the possibility of moving from school buses to other transportation fleets like public city buses and trucks - offering a scalable model to electrify across the entire transportation sector.
Citation:
Kanter, Rosabeth M., and Jacob A. Small. "'The Wheels on the Bus' Go Electric: Highland Electric Fleets and Partners." Harvard Business School Case 324-107, March 2024. (Revised April 2024.) (Additional Teaching Note)
Citation:
Kanter, Rosabeth M., and Jacob A. Small. "'The Wheels on the Bus' Go Electric: Highland Electric Fleets and Partners." Harvard Business School Case 324-107, March 2024. (Revised April 2024.) (Additional Teaching Note)
Vehicle electrification is paramount on the road to lowering global emissions. That’s why municipal transportation fleets, trucking companies, and delivery services are all exploring ways to transition from diesel to electric. One overlooked yet high-impact sector are school buses — which collectively run over 480,000 routes and 10 billion miles per year in the U.S. alone. Electrifying the school bus sector has the potential to deliver outsized climate benefits and meaningful health improvements for children, who are otherwise exposed daily to diesel exhaust—pollution emitted from about the height of a second grader in an exhaust pipe.
That's why it was fascinating to complete this case on Highland Electric Fleets - a Massachusetts-based startup with over $253 million in Series A equity, earned by pioneering its trademark “fleets-as-a-service” model. Highland's goal was to simplify the switch from diesel to electric buses for school districts, who didn't have the bandwidth to handle the transition on their own. In exchange for a fixed per-mile fee, Highland offered a fully integrated package that included electric buses, charging infrastructure, financing support, long-term maintenance, and even “vehicle-to-grid” optimization — enabling districts to sell unused energy back to the grid during peak hours. All of this took place without altering a school district's existing route schedule or fragile budgets.
In less than five years, Highland became the largest procurer of electric school buses in the United States—signing deals in over 30 states and six Canadian provinces while tapping into available grants and incentive programs across regions. That included a landmark contract with Montgomery County Public Schools in Maryland, the largest public school district in the country. While the up-front cost of an electric school bus could reach $400,000, Highland’s service model restructured the financial equation - making electrification feasible and affordable for districts looking to impact student health for the long-term future.
Writing this case was a great opportunity to explore the intersection of startups and climate action. Highland’s team brought together deep policy fluency, hands-on service, and a strong local presence—with sales reps deployed across the country—to turn a complex systems challenge into an actionable, scalable climate solution. Their approach invites the possibility of moving from school buses to other transportation fleets like public city buses and trucks - offering a scalable model to electrify across the entire transportation sector.
Citation:
Kanter, Rosabeth M., and Jacob A. Small. "'The Wheels on the Bus' Go Electric: Highland Electric Fleets and Partners." Harvard Business School Case 324-107, March 2024. (Revised April 2024.) (Additional Teaching Note)
Highland Electric Fleets & Partners: Scaling Green School Buses Across North America
Published:
April 2024
Tags
Tags
Electric vehicles, Fleet transition, Electric grid
Highland Electric Fleets & Partners: Scaling Green School Buses Across North America
Published:
April 2024
Tags
Electric vehicles, Fleet transition, Electric grid




Highland Electric Fleets & Partners: Scaling Green School Buses Across North America
Published:
April 2024