Rivian is in talks with Amazon to regulate the exclusivity clause of their settlement for electrical supply vans.
By altering the clause, Rivian will have the ability to attain out to new prospects because it ramps up manufacturing of the vans, in addition to its R1 collection pickup and SUV.
Rivian and Amazon agreed in 2019 to provide the e-commerce large with 100,000 electrical supply vans (EDVs). The vans started making deliveries in Los Angeles in February 2021 and have since expanded to over 100 cities. Throughout their time in operation, the EDVs have delivered over ten million packages.
Marina Norville, Rivian spokeswoman, emphasised in a press release that the corporate’s relationship with Amazon has and continues to be a optimistic one.
“We proceed to work carefully collectively, and are navigating a altering financial local weather, just like many corporations,” she stated.
“Whereas nothing has modified with our settlement with Rivian, we have now at all times stated we would like others to profit from their know-how in the long term,” stated an Amazon spokesperson.
The rationale for the exclusivity portion of the deal doubtlessly being eliminated is that Amazon desires to purchase 10,000 vans this 12 months, which is lower than anticipated. In consequence, Rivian needs to pursue new retail prospects whereas persevering with to work with Amazon.
Rivian’s fortunes haven’t improved since its large IPO; Ford, Rivian’s second-largest backer with a $500 million preliminary funding, lowered its stake final month to only 1.15%. In the meantime, Amazon has lowered its share to 17%. Rivian should discover one other buyer for its vans earlier than issues worsen particularly after the automaker introduced plans final week to boost $1.3 billion by way of the sale of convertible notes to assist fund the event and launch of its next-generation electrical SUV and pickup truck.