A Milestone and What's Next
Amazon and Rivian, partners since Rivian's 2021 IPO, have reached a significant milestone in their electric delivery van deal. With over 20,000 Rivian EDVs now in its fleet, Amazon is one-fifth of the way towards its goal of 100,000 electric delivery vehicles by 2030. This progress aligns with Amazon's Climate Pledge to achieve net-zero carbon emissions by 2040.
The Rivian EDVs have not only brought Amazon closer to its sustainability goals but have also improved driver efficiency. In 2024, over one billion Amazon packages were delivered using these electric vans.
While the current number of Rivian EDVs represents only 20% of the ultimate goal, the pace of deployment has been accelerating. In March 2023, Amazon's fleet had only 3,000 Rivian vans. The company anticipates continued deliveries to meet its climate goals and enhance driver efficiency.
For Rivian, the Amazon deal remains a crucial source of production and delivery stability as it awaits the launch of its new consumer vehicle models. While the initial rollout of EDVs for Amazon was slower than anticipated, Rivian has amended the agreement to allow sales to other customers, helping to diversify its client base.
In December 2023, Rivian announced a deal with AT&T, demonstrating its commitment to expanding its EDV segment beyond Amazon. The company will continue to deliver vehicles to Amazon while also seeking new customers to drive growth.
Amazon remains a significant shareholder in Rivian, holding a reported 16% stake. The e-commerce giant will continue to receive deliveries of Rivian EDVs, contributing to its sustainability efforts.
Rivian's stock price currently sits at $12.98, down 1% on Thursday. Despite a challenging year, with a 39% year-to-date decline and a 90% drop since its 2021 debut, Rivian remains focused on delivering on its commitments to both Amazon and other customers, while also developing its consumer vehicle division.