Rivian Expands Electric Delivery Van Sales Beyond Amazon
Irvine-based Rivian Automotive has announced it will now sell its electric delivery van, originally designed for Amazon.com, to other customers. This strategic move aims to boost revenue from fleet operators as consumer demand for battery-powered cars slows down.
The EV maker’s commercial vehicle is now available for purchase by fleets of any size, according to a company statement released on Monday. Rivian had primarily produced the van for Amazon under an exclusivity agreement that expired in late 2023. The company had also deployed the van to several unnamed pilot customers to prepare for mass market entry.
Deliveries of the electric delivery van to other customers are set to begin in the second quarter, as confirmed by a Rivian spokesperson. If successful, this commercial van could become a significant revenue source for Rivian amid a broader slowdown in consumer EV adoption.
In the first nine months of last year, Rivian reported $742 million in sales to Amazon, primarily related to the delivery van. This accounted for nearly a quarter of its total revenue of $3.2 billion during the same period. The additional revenue from selling to other fleet operators would provide a much-needed boost as Rivian works to cut costs before launching its more affordable R2 SUV.
A recent report from Cox Automotive indicated that most fleets expect to own an electric vehicle within the next five years. Amazon, one of Rivian’s largest shareholders, has a contract to receive 100,000 vans from the EV maker by 2030. To date, Rivian has delivered over 20,000 vehicles to Amazon, which is a fraction of the online retailer’s overall package delivery fleet.
The decision to expand sales comes after Rivian faced production challenges last year due to a shortage of a critical part, which idled its sole assembly plant in Illinois for several weeks. This forced the company to slash its full-year production forecast.
By diversifying its customer base for the electric delivery van, Rivian is positioning itself for potential growth in the commercial EV sector while navigating the current slowdown in consumer EV demand.
