Rivian Automotive, based in Irvine, California, has started selling its electric delivery van to customers beyond Amazon.com Inc., marking a strategic move to diversify revenue streams amid a slowdown in consumer demand for battery-powered vehicles. The electric vehicle (EV) manufacturer had primarily produced the van for Amazon under an exclusivity agreement that expired in late 2023.
The commercial vehicle, designed specifically for Amazon’s delivery needs, can now be purchased by fleets of any size, according to a statement released by Rivian on Monday. The company has already deployed the van to several unnamed pilot customers as part of its preparation for mass market entry. Deliveries to other customers are expected to commence in the second quarter, as confirmed by a Rivian spokesperson.
This expansion into the broader commercial vehicle market could potentially become a significant revenue source for Rivian as consumer EV demand faces a slowdown. In the first nine months of last year, Rivian reported $742 million in sales to Amazon, primarily related to the delivery van, which accounted for nearly a quarter of its total revenue of $3.2 billion during the same period.
The additional revenue from fleet sales is expected to provide a boost to Rivian as it works to reduce costs ahead of the launch of its more affordable R2 SUV. A recent report by Cox Automotive indicated that most fleets anticipate owning an electric vehicle within the next five years, suggesting a growing market for Rivian’s commercial EV offerings.
Amazon, which is one of Rivian’s largest shareholders, has a contractual agreement to purchase 100,000 vans from the EV manufacturer by 2030. To date, Rivian has delivered over 20,000 vehicles to Amazon, representing a fraction of the online retailer’s overall package delivery fleet.
The decision to expand sales of the electric delivery van comes after Rivian faced production challenges last year due to a shortage of a critical component, which forced the company to temporarily halt production at its sole assembly plant in Illinois and revise its full-year production forecast downward.
