Rivian’s Allocation; Complex or Out of Control?

[IThinkFreely]

Sooo...how much more annoyed should those of us reserved since 2018 be? Is there a sliding scale?

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[yorty]

1. Nobody (outside Rivian) really knows how widespread this issue is. We live off of anecdotes here on the message boards because (in an information vacuum) what else are we going to do? But we're talking about dozens of reports of people jumping the line out of thousands of orders. This is also the internet where [checks notes] information can occasionally be unreliable at best. Take everything with a grain of salt.
2. Rivian has a responsible to shareholders first and foremost. Not to us keyboard worries on the message board. Their #1 priority is to fulfill orders and they are going to prioritize that over all else. We just don't know what goes into the algorithm. Maybe they contact somebody from 2019, that person cancels, and the computer says, "give it to this guy from 2021 because he lives in the same town and that truck is already off the assembly line"... We just don't know but I'm fairly confident that (a) they are not idiots and (b) they are trying to ship trucks to people and collect $.
3. Demand WAY outstrips supply. They have many many many more orders than they can fulfill. That puts them in the strong position and us in the weak position. It's not great but that's the facts. For every disgruntled message board order holder, there are five more willing people to take that truck. Why are they going to bend over backwards (at the sacrifice of sales and/or margin) to satisfy an early order holder? There's just little incentive, except for...
4. Public perception. They could piss off enough people and create some kind of backlash but there's very little evidence of that happening so far in spite of people (possibly) being skipped in line. I'm one of them! Ordered two years ago and have heard crickets. So maybe there's a backlash but (wild guess) they've done the calculus and it makes more business sense to optimize for shipping trucks versus staying true to order in line.

All above is pure wild speculation on my part, based on being a cold hearted businessperson for the last three decades... YMMV.

Early order/shareholder...No Love!

 

[SoCal Rob]

I cautiously disagree, I think from a business standpoint, especially in the early going, it would make more sense to get the vehicle to the next person in line even if it costs a bit more to ship the vehicle somewhere else. The number of times this would or does occur is very small so the overall bottom line cost is negligible.

I get that it could be that their transportation costs are at a very low rate and this is trivial.

Given the current climate with trucking costs I figured probably not, especially for a single vehicle. When you factor in the potential costs associated with correcting shipping damage I was guessing costs in the $1,000 and up range per vehicle relocation. With no guarantee that the first relocation from one low-demand location to another results in a purchase it could be that the same vehicle will get relocated again so sticking with reservation could mean that transportation and related costs per vehicle in low-demand areas are significantly higher plus whatever admin they incur with the juggling.

It’s probably not trivial which is why I was proposing that they are factoring this in somehow.

edit: typo

 

[MountainBikeDude]

Because plenty of people with Apr/May Estimates are yet to receive their vehicle and quite a few October-December estimates have already received their vehicle. We now know that if you have OC interior you aren't getting a vehicle before October even if you have a April or July delivery estimate and I think you can be confident that if you don't have the powered tonneau configured that you won't get your vehicle before 2023 even if you have a 2022 estimate.

Essentially, the logic that they used to provide those estimates is obsolete and has been for several months.

My brain collapsed into the base of my skull trying to understand this.

 

[EVTrucking]

Come on now, don't hold your breath for ANY company to make a public statement like that....silly. "Thanks for coming today, glad to see everyone. We, Rivian, are very excited and would like to formally announce that we in fact do NOT care about you, and are only looking out for Numero Uno. Thanks, and there will be no questions."

Not sure how parts limitations plays into anything. As stated, all that matters is the # made and delivered, not where/to whom they went. If they had only been able to make 500 vehicles this year, the argument would be the same.

Again, this has nothing to do with what is "right" and "wrong" morally, ethically, socially or whatever. It's business and shit happens. You don't see Ford prioritizing any specific subset of reservations for the Lightning, and they are just as constrained.

Parts limitation is what is restricting Rivian from building a lot more R1s in 2022. With 90,000 customers in the wings and only 15-16k for 2022 then it make sense to make the best of what you have.

I have been in corporate manufacturing for nearly 40yrs and I fully understand the the goal of publicly traded companies. No heart no soul just short term bottom line. I get it.

Rivian should just do what they say they are going to do. Configuration/Location/Pre Order Date

 

[EVTrucking]

I get that it could be that their transportation costs are at a very low rate and this is trivial.

Given the current climate with trucking costs I figured probably not, especially for a single vehicle. When you factor in the potential costs associated with correcting shipping damage I was guessing costs in the $1,000 and up range per vehicle relocation. With no guarantee that the first relocation from one low-demand location to another results in a purchase it could be that the same vehicle will get relocated again so sticking with reservation could mean that transportation and related costs per vehicle in low-demand areas are significantly higher plus whatever admin they incur with the juggling.

It’s probably not trivial which is why I was proposing that they are factoring this in somehow.

My point is that with only 15-16K in 2022 it is trivial. Not trivial if the number were 30-50k.

 

[DJG]

Agree. The more emails Tony gets about this the more likely he and his team will take it seriously.

Tony - [email protected]
RJ - [email protected]

That's literally the most selfish thing I've ever heard.

 

[EVTrucking]

Sooo...how much more annoyed should those of us reserved since 2018 be? Is there a sliding scale?

If you have the current available configuration then you should be very annoyed!!

 

[EVTrucking]

That's literally the most selfish thing I've ever heard.

Please elaborate

 

[AllInev]

We have 15k R1s to dole out this year and if you are lucky you might get one!! If not toughsky shitsky.

My sense from what we're seeing on the forums, is this is almost exactly the current policy --perhaps with some minor and occasional consideration of preorder date?

 

[yorty]

I would assume your location from a service center is much more heavily weighted. I'm pretty close to two of them and jumped the line significantly. It's much cheaper for Rivian if i'm the guinea pig opposed to someone who is 350 miles away. Especially when they need to come pick up Aunt Viv on a flatbed and then deliver back to me on a flatbed.

Regardless, I can't blame anyone for being pissed, especially the guy that said his neighbor ordered after, same config and got it before. That just isn't making sense to me unless we aren't hearing the entire story.

Called CS and advised that I could pick up my R1T in San Diego ,PHOENIX

I would assume your location from a service center is much more heavily weighted. I'm pretty close to two of them and jumped the line significantly. It's much cheaper for Rivian if i'm the guinea pig opposed to someone who is 350 miles away. Especially when they need to come pick up Aunt Viv on a flatbed and then deliver back to me on a flatbed.

Regardless, I can't blame anyone for being pissed, especially the guy that said his neighbor ordered after, same config and got it before. That just isn't making sense to me unless we aren't hearing the entire story.

Advised CS that I could pick up my R1T in either San Diego, Phoenix, or Las Vegas .....But ...Seems I must wait until 2023 to be remembered since I am Guideless!

 

[jjwolf120]

Agree. The more emails Tony gets about this the more likely he and his team will take it seriously.

You do realize that neither RJ nor Tony are reading these emails.

 

[SoCal Rob]

Rivian should just do what they say they are going to do. Configuration/Location/Pre Order Date

Sometimes you can’t do what you said you’d do. I’d settle for them sending a communication which says something like:

We understand some customers are dissatisfied with the order of deliveries. Our R1Ts are getting fantastic reviews by experts and owners alike, so we know why you want to be driving one sooner rather than later! Rivian had to reprioritize our fulfillment strategy for the good of the business and the customers we serve. What we’re doing will get the most vehicles to the greatest number of reservation holders in the shortest time and with the highest quality in today’s challenging environment. While things may seem chaotic or random to outsiders, there is logic behind the new strategy which is beneficial in the long run. We are confident that if you’re one of those still waiting, your Rivian will be worth the wait!​

I don’t think they owe me much of an explanation but writing to say that expectations are based on an outdated model would be nice… and it doesn’t even add new self-imposed deadlines or metrics to trip them up.

 

[yizzung]

Sometimes you can’t do what you said you’d do. I’d settle for them sending a communication which says something like:

​

We understand some customers are dissatisfied with the order of deliveries. Our R1Ts are getting fantastic reviews by experts and owners alike, so we know why you want to be driving one sooner rather than later! Rivian had to reprioritize our fulfillment strategy for the good of the business and the customers we serve. What we’re doing will get the most vehicles to the greatest number of reservation holders in the shortest time and with the highest quality in today’s challenging environment. While things may seem chaotic or random to outsiders, there is logic behind the new strategy which is beneficial in the long run. We are confident that if you’re one of those still waiting, your Rivian will be worth the wait!​

I don’t think they owe me much of an explanation but writing to say that expectations are based on an outdated model would be nice… and it doesn’t even add new self-imposed deadlines or metrics to trip them up.

You’re right. They don’t owe us that, which is probably why they won’t do it. The only people they need to apologize to are ones who had their delivery window sail by without delivery. A lot of people are not complaining that their delivery window went by but rather are complaining because they suspect it will or because they’ve convinced themselves that some undeserving person got a vehicle. The “outdated model” is an internet meme not a fact.

 

[SoCal Rob]

You’re right. They don’t owe us that, which is probably why they won’t do it. The only people they need to apologize to are ones who had their delivery window sail by without delivery. A lot of people are not complaining that their delivery window went by but rather are complaining because they suspect it will or because they’ve convinced themselves that some undeserving person got a vehicle. The “outdated model” is an internet meme not a fact.

I agree 100% that they really should be communicating SOMETHING to the people who had delivery windows come and go without getting a delivery.

A lot of businesses would turn this communication into more of a win as I tried to do in my example. Going the route of pointing out the positives while issuing an explanation or mild apology seems like a good way to communicate missteps. This brag-pology type of communication seems like a pretty common way of handling these issues, it costs almost nothing, and it can go a long way in keeping enthusiastic consumers enthusiastic.

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