What's next for Rivian after ending exclusive deal with Amazon
What's the story
Rivian has revealed that it is ending an exclusive arrangement with Amazon and is opening up sales of its commercial electric vans to other businesses.
This news came alongside Rivian's third-quarter earnings report and resulted in a boost to both companies' stock prices.
Amazon had initially secured the exclusive deal in 2019, by investing over a billion dollars in the Irvine, California-based automaker.
Details
Background of the exclusivity agreement
Rivian and Amazon's agreement was set to expire after delivering 100,000 electric vans, which was expected to occur before 2030.
However, as early as March, Rivian had been discussing the possibility of removing the exclusivity clause with Amazon.
During an investor call, Rivian CEO RJ Scaringe stated, "We've been working on the exclusivity agreement with Amazon for a while. With that, we've been building relationships with a diverse set of commercial operators, and that's everything from last-mile to retail."
Stake
Amazon's fleet and stake in Rivian
Amazon has a 17% stake in Rivian, which means any success for the EV maker also benefits the retail giant.
In October, Amazon had 10,000 Rivian-produced vans on the road, meeting a sales milestone set for 2023 by both companies.
Udit Madan, Amazon's VP of Transportation said, "We've always said that we want others to benefit from [Rivian's] technology in the long run because having more electric delivery vehicles on the road is good for our communities and our planet."