TL;DR
Get business pricing on garage and car supplies
- Business-only prices and quantity discounts
- Tax-exempt purchasing
- Multiple users, one account, clear invoices
Rivian CEO RJ Scaringe says Amazon has stepped up orders for the company’s electric delivery vans, citing their operating-cost advantages. Rivian reported $1.6 billion in revenue from Amazon so far this year, nearly three times the year-earlier figure, while new van variants are entering Amazon service. The company has not disclosed model-by-model delivery volumes or confirmed a reported Walmart deal.
Rivian says Amazon has increased demand for its electric delivery vans this year, giving the company a growing revenue source alongside its consumer vehicles. The automaker reported $1.6 billion in Amazon revenue so far this year, primarily related to EDV van sales, nearly three times the year-earlier amount, according to the report.
Rivian founder and CEO RJ Scaringe said on an earnings call that Amazon, an early investor in Rivian, is buying more EDVs because of their lower running costs. He described the resulting cost advantages as a reason for Amazon to continue purchasing vans. Those remarks are the company’s explanation for the increased demand; Rivian did not provide a separate breakdown of how much of the change comes from van volume, pricing or other Amazon-related revenue.
Amazon paid Rivian $596 million in the third quarter, more than it paid the automaker across the first three quarters of the previous year combined, the report said. Rivian does not disclose delivery volumes by vehicle model, so the financial figures indicate the scale of its Amazon business but do not establish how many vans were sold.
Rivian also said it has started delivering two new EDV variants to Amazon. One has all-wheel drive; the other has a larger battery and, according to the company, 30% more range. Rivian opened fleet orders to customers beyond Amazon last year, with the smaller van starting at $79,900, according to the report.
Amazon Gives Rivian a Revenue Anchor
Growing commercial-van sales could give Rivian a source of revenue beyond its consumer models, including the R2 crossover that the company sees as part of its longer-term path to profitability. The Amazon figures show the delivery-van business is already financially material, although they do not establish whether it is profitable or how much it contributes to Rivian’s overall results.
More broadly, fleet operators may weigh electric vans against conventional vehicles based on operating costs as well as purchase price. Scaringe attributed Amazon’s purchases to lower running costs, but the report does not provide an independent cost comparison or details of Amazon’s fleet economics. Rivian’s ability to secure more customers beyond Amazon will be a key test of whether the EDV can become a durable business rather than a program tied largely to one buyer.
Products Worth Considering
DEWALT 20V MAX XR Hammer Drill and Impact Driver Combo Kit with Two 4Ah Batteries and Charger
DEWALT 20V MAX 1/4-Inch Impact Driver Kit with Battery and Charger (DCF787D1)
DEWALT 20V MAX XR 3-Speed Cordless Impact Driver Kit (DCF845P1)
As an affiliate, we earn on qualifying purchases.
Rivian Expands Beyond Amazon
Rivian’s EDV has been closely associated with Amazon’s delivery network. The automaker has been working to make the van available to other fleet operators, and Scaringe said Rivian is in discussions with potential customers. The report also describes a competitive market in which established automakers have pulled back: Ford sold fewer than 700 E-Transit vans during the period cited and canceled a next-generation model, while General Motors discontinued its BrightDrop electric delivery vans late last year.
That market picture does not mean Rivian is without competitors. The report cites Harbinger Motors’ agreement to supply 2,000 electric trucks to FedEx and describes electric-vehicle manufacturers as a major force in commercial-vehicle electrification. International Council on Clean Transportation heavy-duty vehicles program director Ray Minjares said EV-focused manufacturers are leading current U.S. market activity. Separately, Rivian’s R2 received attention after becoming its best-selling vehicle in the third quarter, according to the report, but the Amazon van business is a distinct source of commercial revenue.
“This year we have seen a significant step up in the level of demand from Amazon.”
— RJ Scaringe, Rivian founder and CEO, on the earnings call
Van Volumes and New Buyers Remain Unknown
Rivian has not disclosed EDV delivery totals by model, or specified how much of its Amazon revenue reflects vehicle sales versus other business. The reported near-threefold increase compares Amazon revenue so far this year with the year-earlier period, but the report does not provide a detailed revenue breakdown or an independent measure of van profitability.
A photograph of an EDV wearing Walmart livery circulated online, prompting speculation about a possible arrangement. Rivian did not confirm a Walmart deal and declined to comment directly on the photograph; Scaringe said the company is speaking with other potential customers. No customer, order size or delivery schedule for a new deal was announced in the material provided.
New Routes and Fleet Talks Ahead
Rivian’s near-term commercial developments include putting the two new Amazon variants into service, with their all-wheel-drive and longer-range configurations aimed at different routes. The company has said it is talking with other potential EDV customers, but has not announced a new fleet contract. Further earnings reports may clarify Amazon revenue, van deliveries and whether Rivian can expand sales beyond its largest disclosed commercial customer.
Key Questions
Why is Amazon buying more Rivian vans?
Rivian CEO RJ Scaringe said Amazon is responding to the vans’ lower running costs. The report does not include an independent cost comparison or detailed figures from Amazon.
How much revenue has Rivian reported from Amazon?
Rivian booked $1.6 billion in Amazon revenue so far this year, primarily related to EDV sales, according to the report. The figure was nearly three times the year-earlier amount.
Has Rivian confirmed a Walmart van deal?
No. A photo of an EDV in Walmart livery prompted speculation, but Rivian did not confirm an agreement. Scaringe said Rivian is talking with other possible commercial customers.
What new EDV versions are going to Amazon?
Rivian said deliveries have started for an all-wheel-drive variant and a version with a larger battery that the company says provides 30% more range.
Source: insideevs.com
