Rivian Broadens Sales of Van Once Exclusive to Amazon
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Rivian Automotive Inc. said it will now sell its electric delivery van designed for Amazon.com Inc. to other customers, a move to boost revenue from fleet operators as consumer demand for battery-powered cars slows.
The EV maker’s commercial vehicle can now be purchased by fleets of any size, the company said in a statement Feb. 10. Rivian has primarily produced the van for Amazon under an exclusivity deal that expired in late 2023. It has also deployed the van to a number of unnamed pilot customers to prepare for the mass market, Rivian said.
Amazon ranks No. 1 on the Transport Topics Top 100 list of the largest logistics companies in North America, No. 12 on the private carriers list and No. 1 on the global freight TT50.
Deliveries are slated to begin in the second quarter, a Rivian spokesperson said.
If it gains traction, the commercial van could become a bigger source of revenue amid a broader slowdown in consumer EV uptake. Rivian reported $742 million worth of sales to Amazon, primarily related to the delivery van, in the first nine months of last year, nearly a quarter of its $3.2 billion in total revenue during the period.
The additional revenue would offer a boost to Rivian as it works to cut costs ahead of launching its more-affordable R2 SUV. A July report from Cox Automotive found that most fleets expect to own an EV in the next five years.
Rivian Automotive Inc. said it will now sell its electric delivery van designed for Amazon.com Inc. to other customers, a move to boost revenue from fleet operators as consumer demand for battery-powered cars slows.
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Amazon, one of Rivian’s biggest shareholders, has a contract to take 100,000 vans from the EV maker by 2030. Rivian said it has delivered more than 20,000 vehicles to date to Amazon, a fraction of the online retailer’s package delivery fleet.
A shortage of a critical part idled production at Rivian’s sole assembly plant in Illinois for several weeks last year, prompting the company to slash its full-year production forecast.
