Amazon agreed to purchase over 100,000 all-electric delivery vans from Rivian in a 2019 exclusive deal. That 'exclusivity' part could be coming to an end.
Despite their continued commitment, talks may have been held as Amazon seeks to purchase 10,000 vans in 2023, less than initially expected. So, Rivian needs to find new customers.
Amazon initially invested $700 million into Rivian as part of its "Climate Pledge" while Ford came in with a $500 million investment, which later dropped to a mere 1.15%.
Unlike the R1T and R1S EVs, EDVs are not offered for private use. Designed exclusively to be delivery vans, they met the needs of Amazon's expanding delivery services.
Both companies have already announced cost-cutting measures due to the economic situation. Rivian laid off 6% of its workforce while Amazon laid off over 18,000 workers in 2021.
If the deal does not hold up its original terms, Rivian needs new fleet customers to help make up for lost future revenue. Amazon has reduced its ownership stake, leaving Rivian with an uncertain future.