Is the Rivian Amazon Van Going to Be Replaced?

Amazon ordered 100,000 Rivian electric trucks but has also ordered similar trucks from Stellantis.
Written by Tom Hindle
Reviewed by Kathleen Flear
Feb 12, 2022
A Rivian van being manufactured
In February 2021, Amazon entered into a partnership with Rivian, a new EV brand on the market, to supply it with
EV commercial trucks
. Rivian had been operating since 2009 but debuted its SUV and pickup trucks in 2018.
However, a year down the line, Amazon seems to be considering other EV
brands
to meet the demand. So, let's find out if Amazon is considering replacing the Rivian van.

Amazon ordered 100,000 Rivian vans

At the start of December 2021,
CNET
explained that Rivian was building a $5 billion factory in Georgia. The factory was to relieve pressure on its Illinois factory as it planned to increase the capacity to 200,000 units a year. Rivian was racing to meet the 100,000-van order from Amazon that was made in 2019.
The vans, dubbed EDV 700, have 700 cubic feet of cargo storage and a range of 201 miles. This fits Amazon's need for a light truck that could deliver goods across short and medium distances. 
Amazon claimed that they had been produced and tested within a year. The eCommerce firm also thanked its customers for showing appreciation for the truck. And at the time of the announcement, Rivian seemed to be on time to deliver the trucks.

Trouble in paradise

As
Bloomberg
explains, Amazon seems to have had a change of heart. In the first week of 2022, Amazon announced that it would be buying electric vans from Stellantis—a new company formed from the merger of PSA Group and Fiat Chrysler.
And that seemed to shake things up. Before the deal with Amazon, Rivian was a small carmaker that did not have a foothold in the market. However, thanks to the deal with the eCommerce giant, it gained fame and raised a whopping $11.9 billion in an IPO held in 2021. However, the new announcement sank its shares rapidly. 
Meanwhile,
Stellantis brands
got a boost from the announcement, which saw its shares climb 11% in the biggest weekly gain in the last six months. The deal is also expected to give the carmaker some headway in the market. 
However, some market analysts predict that the shift might not be all that bad for Rivian. Amazon has a huge demand for delivery trucks and the financial muscle to buy more than it wants. The company may not produce enough of its trucks to satisfy the demand, anyway.
Now that Amazon has trained its eyes on climate goals with increased efficiency and lower carbon footprint, it needs multiple EV manufacturers to speed up the realization of its targets. So, it’s possible that they might call on both Rivian and Stellantis for their products.

Does Rivian produce other vehicles?

Rivian is focused on commercial vans and recreation trucks. It also has a fleet management software platform. The carmaker's major product is the commercial van, which offers users a choice of 450 to 900 cubic feet of cargo.
The company is also making a foray into the pickup world and is developing an SUV, too. 

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