Amazon and Rivian negotiating end of exclusivity agreement for EDV Electric Delivery Van

[Guy]

Ford and GM are already in this market with some large deals too. I hope Rivian can get another large anchor deal to provide confidence.

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[JerseyGreens]

This would be a major win for Rivian as there is definitely demand for EDVs outside of just Amazon.

 

[jjswan33]

Rivian reached out to me last month about my interest in the RCV but they didn't give a timeline in the response email at all. I'll definitely be making a post once they can provide more information about it. Sounds like based on this news article, that could end up being sooner than later.

Bring on the max pack dual motor RLV……. Rivian please take my money.

 

[Sully151]

I guess my concern lies in if Amazon is pinching pennies, wouldn’t everyone else be doing the same?

 

[Donald Stanfield]

I guess my concern lies in if Amazon is pinching pennies, wouldn’t everyone else be doing the same?

Sure, but many small orders is better than one big one for a business like Rivian. They can sell the EDV on the open market which means tons of customers. The EDV is probably the best vehicle possible for small service type companies.

150 mile range is great for service or commercial construction vehicles that only go to one or a couple job sites daily but need to carry tools. Fuel savings alone would pay for that switch.

 

[av8or]

The company that just installed my home charger would love to get their hands on some. They are wanting to go all electric vans, but a source that can actually deliver has been difficult to find. He said they rarely do 100 miles in a day.

 

[Dark-Fx]

The company that just installed my home charger would love to get their hands on some. They are wanting to go all electric vans, but a source that can actually deliver has been difficult to find. He said they rarely do 100 miles in a day.

Workhorse just recently introduced a class 5/6 van that would be an even better option for a lot of companies that have heavy deliveries. 210 kWh LFP battery.

https://workhorse.com/w56/

 

[zipzag]

^This. Amazon is in a cost cutting mode. The contract was always one-sided. Amazon has exclusive right to buy Rivian’s vans, but locked Rivian out of selling to anyone else. Meanwhile Amazon can (and has) contracted to buy vans from other manufacturers in addition to Rivian.

Some in the automotive press claims the Amazon contract heavily favors Amazon. Rivian wanting to undo the contract may be an appeal to Amazon the investor over Amazon delivery services.

Despite what Rivian infers on their website they are unlikely to be delivering "FleetOS" to Amazon. If they are ready to beta test their full delivery software suite they may want a smaller customer who will rely on Rivian as the primary software developer. So "FleetOS" may be the primary motivation behind the attemp to eliminate Amazon exclusivity.

Rivian making vehicles at near cost for Amazon for the rest of this decade is likely not much of a business.

 

[Sgt Beavis]

I want an EDV based RV.

 

[Sharpobjects4321]

Ford and GM are already in this market with some large deals too. I hope Rivian can get another large anchor deal to provide confidence.

I think there is a opportunity with UPS because Arrival has dropped the ball.

 

[NY_Rob]

Guess the honeymoon is over... makes you wonder if some other EV manufacture has offered Amazon an EDV for significantly less?

 

[Sharpobjects4321]

Guess the honeymoon is over... makes you wonder if some other EV manufacture has offered Amazon an EDV for significantly less?

the exclusive part of the contract only limited Rivian from selling to someone else. Amazon could always purchase EVs from someone else and has bought a small amount from others. More likely Amazon is pulling back some of their expenses. Hurting Rivian is somewhat hurting themselves since they still own 100 million plus of shares.

 

[PappaBolt]

Guess the honeymoon is over... makes you wonder if some other EV manufacture has offered Amazon an EDV for significantly less?

Amazon had always had a one-sided open marriage. Rivian now wants the same.

 

[Tahoe Man]

During the whole downtrend from some ridiculous overvalue to now, it's always been "Oh this is good for Rivian". So how is that working out?? Instead of fanboy comments why not something realistic? The stock is now down something like 90+ percent. When is enough, enough?

Imo, this isn't good for Rivian at all. I see it as a major loss of confidence from a extremely well known customer. The loss of the exclusivity PR is another hit.

I still think $12 is a real possibility. I really thought getting my feet wet at $19 was the right move, looks like it was way premature. This stock needs a real washout.

 

[Craigins]

Also remember FleetOS could be a major source of revenue, akin to the consumer "membership" revenue.

Instead of just selling hardware, they will offer the complete system. As someone mentioned above, Amazon likely would not use FleetOS, but smaller customers would.

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