Amazon-backed EV maker Rivian Automotive will now enable other companies to purchase its custom-designed electric commercial van as it ends its exclusivity deal with the e-commerce giant and ramps up production.
Talks concerning Rivian and Amazon’s exclusivity agreement for the Rivian Commercial Van began earlier this year, with reports that Amazon had ordered fewer vehicles than originally planned leading to Rivian seeking to renegotiate their contract.
However, in Rivian’s Q3 2023 results, the automaker noted that it remains focused on working with Amazon to bring 100,000 electric delivery vehicles (EDVs) to the road, as per the original order made in 2019.
Amazon roll out
Amazon now has more than 10,000 Rivian EDVs in its fleet that have delivered over 260 million packages to customers in more than 1,800 cities and regions across the US. Earlier this year, Amazon also rolled out its first EDVs in Germany. Amazon plans to have all 100,000 EDVs active by 2030.
“Rivian and Amazon share a mission to decarbonize last mile delivery and have been working together since 2019 to make that a reality,” said Udit Madan, Vice President of Transportation at Amazon.
“This has been part of our plan with Rivian from the beginning – we’ve always said that we want others to benefit from their technology in the long run because having more electric delivery vehicles on the road is good for our communities and our planet,” Madan added.
Increased production target
Rivian, which alongside the EDV also develops the R1T electric pickup truck and the R1S electric SUV, is now hoping to drum up additional sales by offering the EDV to other customers. In its Q3 results, the firm also announced that it has boosted its overall 2023 production target to 54,000 units, up from 52,000, due to “the supply chain outlook,” it noted.
“We’re excited to open sales of our electric commercial van to more businesses,” said RJ Scaringe, CEO of Rivian. “Around a quarter of CO2 emitted in the transportation sector in the US comes from commercial vehicles, so it’s imperative we do all we can as soon as possible to help cut emissions.
“Amazon is, and will remain, a key partner for us, and we look forward to continuing to work closely with the Amazon team as we help them to achieve their Climate Pledge goal,” Scaringe added.
It is hoped that the end of the Amazon and Rivian exclusivity deal will further boost revenues and reduce losses for Rivian. For Q3 2023 the firm reported record revenue of US$1.34 billion, up from US$536 million in Q3 2022. This came mainly from deliveries of 15,564 R1T pickups, R1S SUVs and delivery vans. Its net loss was US$1.37 billion, down from US$1.72 billion in Q3 2022.
The Rivian EDV
The Rivian Commercial Van is the platform on which Amazon’s custom electric delivery van is based, and is designed from the ground up prioritizing safety, driver comfort, and sustainability. Safety features include automatic emergency braking, collision warnings, and 360-degree visibility.
It comes in two available vehicle sizes – Delivery 500 with a range of 161 miles and a payload of up to 2,734lbs, and Delivery 700 with a range of 153 miles and a payload of up to 2,513lbs. Rivian’s in-house software stack controls nearly every interaction, from unlocking the vehicle and opening the door, to charging and acceleration.
When applied to the commercial space, this enables Rivian to provide easy access to critical fleet information, including real-time data and remote commands, driver and vehicle insights, alerts and analytics. These tools streamline fleet ownership and minimize costs, while increasing safety and productivity.
