Rivian and Amazon in talks to end exclusivity part of electric van deal

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Rivian, the electric vehicle (EV) maker, and Amazon, the e-commerce giant, are reportedly in talks to revise the exclusivity clause of their 2019 agreement for 100,000 electric delivery trucks. If the exclusivity piece is removed, Rivian could pursue new customers as it seeks to scale up the production of its EVs. Welcome to Volter Media, the electrifying channel that brings you all the latest news and updates about electric vehicles! Whether you’re an EV enthusiast or just curious about the future of transportation, Volter Media has something for you. So hit that subscribe button and join us on this exciting journey into the world of electric vehicles!. Rivian and Amazon are in discussions to adjust the exclusivity clause of their agreement for the EV maker’s electric delivery trucks, a company spokeswoman said Monday. Eliminating the exclusivity piece of the agreement would allow Rivian to court new customers as it works to ramp production of the vans and its R1 pickup and SUV.

Rivian is also working on a forthcoming R2 model and is in need of cash. A few days ago, Rivian announced plans to raise $1.3 billion via a sale of convertible notes to help fund R2 development and launch. Rivian spokeswoman Marina Norville said in a statement the company’s relationship with Amazon has been and continues to be a positive one. Quote. “We continue to work closely together and are navigating a changing economic climate, similar to many companies,” end quote. Rivian and Amazon struck a deal in 2019 to hand over 100,000 electric trucks to the e-commerce giant. Amazon began delivering packages with the vehicles in July, and Rivian last month touted 10 million packages delivered via the vans. But Amazon, Rivian’s largest shareholder, has since underwhelmed with its order numbers, telling Rivian it wanted to buy about 10,000 vehicles this year — the low end of a previously stated range, according to The Wall Street Journal, which first reported the discussions to end exclusivity.

Amazon said in a statement to CNBC that 10,000 vehicles were the original commitment and that there has been no change to its order volume or partnership with Rivian. Quote “While nothing has changed with our agreement with Rivian, we’ve always said that we want others to benefit from their technology in the long run because having more electric delivery vehicles on the road is good for our communities and our planet,” end quote. Rivian and Amazon’s discussions to adjust the exclusivity clause of their agreement for electric delivery trucks may be a positive move for Rivian’s growth and development, but it also raises concerns about the future of electric vehicle (EV) adoption. The deal between the two companies was initially struck to bring 100,000 electric trucks to Amazon, and Rivian has been working to deliver on that promise. However, with Amazon’s order numbers lower than expected, Rivian needs to find new customers to maintain its growth and development.
Eliminating the exclusivity clause from the agreement would allow Rivian to expand its reach and work with other companies. This is crucial for Rivian as it works to ramp up production of the R1 series pickup, SUV, and delivery trucks while simultaneously working on the development and launch of the R2 model. However, this move could have a wider impact on the EV industry, as it signals a shift away from the idea of exclusive partnerships and towards an open market for EVs. While exclusive deals like the one between Rivian and Amazon may have been necessary to kickstart the EV industry, it is time for companies to look beyond such partnerships and embrace open competition. The market for EVs is rapidly growing, and as more automakers enter the space, we can expect to see more open competition and collaborations. Open competition fosters innovation, helps to drive down costs, and allows for a more diverse range of EVs to reach consumers.