How Amazon Is Giving Rivian An Edge In The EV Industry

A new electric vehicle company hopes to take on Tesla with its outdoor adventure trucks and SUVs. And its deal with Amazon to build 100,000 electric delivery vans could help it succeed.
Founded in 2009, Rivian is focusing on upscale electric trucks and SUVs with an emphasis on outdoor adventure. CNBC's John Rosevear calls them the "Patagonia of electric vehicles."
Rivian launched its first vehicle, the R1T electric truck, at the end of last year. It's been working to scale up production and is planning to ship its SUV - the R1S - built off of the same platform, later this year.
It's been a long and arduous road to get to this point. But Rivian has received some major assistance, including $700 million from Amazon in 2019 and $500 million from Ford a few months later. Initially, Rivian and Ford sought to develop a joint vehicle together, but the companies ended up canceling those plans.
However, the partnership with Amazon is still on track. Following its investment, Amazon said it would purchase 100,000 custom-built electric delivery vans, part of its move to electrify its last-mile fleet by 2040.
When Rivian went public in November 2021, it had one of the largest IPOs in U.S. history. But the turbulent economy has cast a shadow over its rocketing success. As the market responded to inflation and fears of a recession, the stock took a big hit. But with the Amazon deal secured, some are confident the EV maker can weather the storm.
"When Amazon invested in them…but more importantly, put a commitment to buy all of those vehicles from them, they changed the market dynamic around that company," said Mike Ramsey, an auto and smart mobility analyst at Gartner.
Last month, Rivian and Amazon rolled out the first of the electric vans. They are starting to deliver packages in a handful of cities, including Seattle, Baltimore, Chicago and Phoenix.
Watch the video above to find out more.
Chapters:
2:31: Rivian
5:16 Amazon EDV
8:19 Challenges
11:02 Future plans
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How Amazon Is Giving Rivian An Edge In The EV Industry

[@TheMavenDojo]

It is actually smart from the Amazon side to have a custom delivery fleet made "from scratch" to their specific needs. Instead of converting regular vans.

[@somersetbassett4580]

I helped set up the RPV portion of the IL plant. It's a well made van and I'm proud to have been part of its creation.

[@christianleal8873]

CNBC has been killing it with these videos lately

[@chelseaisking]

Amazon invested in Rivian ordered 100000 units and the Rivian went public. Genius on Amazons part. Probably got the vehicles for free

[@chargermopar]

Postal service, federal express, ups and amazon should all go electric for deliveries. Long haul is not practical but last mile will save a ton of energy, and repairs.

[@kindnuguz]

I hope Rivian is successful and these vehicles last to give EV a good reputation. This will give the public confidence in EV.

[@KingVegeta90]

I’m a manager at a amazon delivery station, I can’t wait to start seeing these

[@adamraynor9626]

I saw an R1T last week, and just this Monday I saw the Amazon Rivian truck in the KansasCity area. I hope that the company I work for will consider buying trucks like these.

[@eyesuckle]

I think the future of Rivian is bright for the very reason that one of the commentators mentioned: They hit the sweet spot with their product and its styling. People love these trucks. Personally, I think they're beautiful!

[@brickman409]

I've been seeing more and more of the Rivian trucks on the road. Those unique headlamps make them easy to spot. Still not a ton of them out there, but enough for me to notice. Reminds me of when Teslas were first coming out.

[@madboyreadynow28]

I live in Plano, TX. I see the Amazon Rivian vans all the time in my neighborhood. I have a few neighbors who own the Rivian pick up truck. These are some really cool trucks.

[@thefilmguy]

If the Amazon delivery vehicles are successful. I can see companies like UPS and FedEx going electric for their vehicles as well, because diesel fuel costs are a factor in shipping costs and those costs more often than not are passed on to the customer.

[@ScrapPalletMan]

2:35

[@BiggUnc816]

As a supplier to Rivian I am proud to be a part of this start up I sure hope there will make it out of there slump

[@namankathuria710]

Rivian can get into school busses, which is for sure a huge market and needs the electric revolution

[@600SubsNoVidsCha11enge]

I’ve seen these on the road in LA and they actually look better than I thought. There actually very luxurious pickup trucks! I hope Rivian can get it big!! 👍

[@MansaKimani]

Rivian deserves this and more, I heard the Journey of the Founder, RJ Scaringe and I have utmost respect for the startup which has been more than a decade in the making. More Life to Rivian and I can't wait to drive the R1S

[@jonahpinx]

We have the charging stations installed at our warehouse but have not gotten any of the vehicles yet. Would be nice to test them out over a rear wheel gas hog that gets stuck in this nice northern snow easy.

[@lovesophia19]

My husband works with Rivian and met the CEO!! So cool

[@jedimaster6442]

I saw one of these trucks today Dallas TX, I couldn't stop staring at it, looks nice