Thursday, April 18, 2024
NewsRivian no Longer Wants Amazon to be its Exclusive EDV Customer

Rivian no Longer Wants Amazon to be its Exclusive EDV Customer

Amazon’s 2023 of 10,000 EDVs leaves Rivian needing to find new partners


  • The electric delivery vans (EDV) were designed and developed to eventually replaced Amazon’s fleet of ICE vans.

  • The standing order from Amazon is for 100,000 units.


Amazon was an early supporter and adopter of Rivian’s ways. Its technologies and designs were enough to convince the giant commercial company to invest heavily in the EV startup and eventually place a massive 100,000-unit order for the automaker’s electric delivery vans (EDV).

Rivian EDV-700 in Amazon livery | Photo: Rivian
Rivian EDV-700 in Amazon livery | Photo: Rivian

The agreement worked for both companies as the $700 million investment enabled Rivian to get up and running while the EDVs would help Amazon reach its environmental commitments. So far, well over 1,000 EDVs have been delivered to Amazon in 100 cities across the US.

While all 100,000 are expected to be handed over by the end of the decade in increments, Amazon has informed Rivian that they will only be taking 10,000 vans in 2023, or the lower amount planned in the deal. This has left Rivian with potentially more vans to sell which is why it’s wanting to build new partnerships. Amazon was to be Rivian’s exclusive customer for the EDV, but the automaker would now like to revise the exclusive aspect in the contract.

According to electrek, the “changing economic climate” is causing the companies to implement cost-saving plans to reduce expenses and increase profitability. This explains to smaller order for EDVs and the need for Rivian to find new customers.

Advertisement

Trending Now

Matt St-Pierre
Matt St-Pierre
Trained as an Automotive Technician, Matt has two decades of automotive journalism under his belt. He’s done TV, radio, print and this thing called the internet. He’s an avid collector of many 4-wheeled things, all of them under 1,500 kg, holds a recently expired racing license and is a father of two. Life is beautiful. Send Matt an emai

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.