Online shopping giant Amazon is committing to 100,000 new electric delivery vehicles in 2021.
Electric vehicle startup company Rivian just made the deal of a lifetime. Amazon executive Jeff Bezos said that it would order 100,000 vans from Rivian in an effort to be carbon neutral by the year 2040. Amazon’s goal is to have all of its Rivian vehicles up and running by 2024.
Rivian is an electric vehicle startup company founded in Plymouth, Michigan. Founded in 2009, Rivian has received billions of dollars of investments from companies like Cox Automotive, General Motors, and Ford Motor Co. Rivian plans to be the first company to produce a mass-market electric pickup, the R1T, which will hit the market by the end of 2020. The Amazon delivery vans will be produced at a former Mitsubishi factory in Normal, Illinois according to Rivian spokeswoman Amy Mast. Prior to the Rivian deal, Amazon had purchased 20,000 sprinter vans from Mercedes-Benz.
How will this deal affect Rivian? Because of Amazon’s stellar reputation and increasing popularity, the value of the company is projected to grow. According to Vice President of Auto Forecast Solutions, “It helps boost the image of the brand.” Some even expect Rivian to become a potential rival to Tesla, Inc.
To give an idea of just how much confidence is in Rivian, here’s a breakdown of how much has been invested into the company already:
- Cox Automotive: $350 million
- Ford: $500 million
- Amazon: $700 million
Rivian plans on making its Amazon delivery vans with the custom exterior, interior, software and suspension according to a spokesperson for the company. By 2030, Amazon expects to have a full fleet of electric delivery vans on the road. Rivian has developed one “skateboard” design, on which all its vehicles are based. That includes a 180-kWh battery pack and, according to Rivian, good for 450 miles of range, even in a heavy, not-so-aerodynamic vehicle.
Once the full fleet of Rivian vehicles hit the road, Amazon will have roughly 130,000 vehicles delivering packages. Going fully electric will not only cut down on the company’s fuel costs but will alleviate some employees who are upset about how delivery vehicles are contributing to climate change.
All in all, the deal between Amazon and Rivian will surely have a positive impact on the environment. With 100,000 new electric vehicles, Amazon hopes to inspire other companies to make the switch. Because electric vehicles can easily be charged at night, electric fleet vehicles are becoming more and more popular with companies. Cutting on fuel costs and saving the environment, Amazon may be the first of many brands to go electric