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Is Rivian Unappreciative of the Amazon Lifeline?

Have you seen the electric plug-in with the Rivian name on the front and a giant Amazon smiley on the side? Some have it, and this Rivian Amazon one is pretty awesome. They’re taking commercial deliveries forward for Amazon, which has been a huge supporter of Rivian since 2019. Unfortunately, something seems amiss about this adaptive partnership.

What is the deal between Amazon and Rivian for electric delivery vans (EDVs)?

Rivian Amazon Electric Delivery Cart | Rivian

In 2019, Amazon and Rivian entered into a partnership in which Amazon became the largest shareholder of Rivian stock. That initial investment was $700 million, which is a huge lifeline for Rivian. In return for this investment, Rivian signed an exclusive contract to build Amazon’s 100,000 package delivery platform.

. Rivian is also facing financial problems and laid off 6 percent of its workforce in February.

What can Rivian do to turn things around?

The deal between Rivian and Amazon for delivery vans is exclusive. It may seem like Rivian is a bit underappreciated for the lifeline it was introduced in 2019, but the best course of action is to remove exclusivity from the deal. This will allow Rivian to seek other commercial customers to sell its electric delivery vans.

How did the economic climate change for the worse?

Although the growth and demand for electric vehicles, especially in the commercial sector, has been explosive for a few years, it has slowed down recently. Add this slowdown to rising interest rates, and you have a recipe for disaster.

Although Rivian still has a positive relationship with Amazon, a company spokesperson said:

“We continue to work closely together and navigate a changing economic climate, as do many companies.”

However, if Rivian is to survive the slowdown in the commercial sector, the company must find innovative solutions and remove the exclusivity clause in the agreement with Amazon. Recently, both Ford and Amazon reduced ownership stakes in Rivian, which could be detrimental to the EV startup.

What about other Rivian vehicles?

Blue 2022 Rivian R1T outdoor location
2022 Rivian R1T | Rivian

The Rivian R1T electric truck and R1S electric SUV are impressive electric vehicles, but the company hasn’t found a way to make a profit from them. So far, Rivian hasn’t struck the same chord with investors as Tesla, which could put the fledgling EV automaker on a path to bankruptcy.

Then, check out or learn more about Rivian Amazon electric delivery trucks in this video below:

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