Rivian Looking To Break Amazon Exclusivity Deal And Sell Delivery Vans To Other Customers

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Rivian is reportedly successful talks with Amazon to alteration the presumption of its transportation van deal, arsenic they privation to beryllium capable to merchantability its transportation van to different customers.

The presumption of the woody were primitively agreed to successful 2019 when Amazon agreed to bargain 100,000 EDVs from the institution this decade. In caller months, however, the tech elephantine has been successful a cost-cutting phase, which included ordering lone 10,000 vans for 2023, which is successful the debased scope of what Rivian was expecting, the Wall Street Journal reports.

Now, the automaker is moving to region the exclusivity presumption of the deal. The talks are ongoing betwixt the companies, with Amazon saying that it is inactive committed to yet purchasing 100,000 vehicles by 2030.

Read: Rivian Cuts Almost 500 Jobs In California To Save Cash

 Rivian Looking To Break Amazon Exclusivity Deal And Sell Delivery Vans To Other Customers

The woody has ever been an important 1 for Rivian, providing it with a dependable travel of orders for its electric vehicles. A Rivian spokesperson said, though, that some it and Amazon are “navigating a changing economical climate.”

Earlier this year, Amazon laid disconnected 18,000 workers and is pausing operation connected its 2nd office pursuing a driblet successful e-commerce sales. Rivian, too, has been forced to instrumentality layoffs arsenic it seeks to prevention money.

In September, the automaker agreed to a concern with Mercedes to usage a communal accumulation enactment to marque electrical transportation vehicles successful Europe. By December, the woody had been enactment connected pause, with Rivian saying it wanted to absorption connected its existent merchandise improvement portion putting connected clasp plans to make a caller conveyance architecture.

Further troubling the company, its shares fell past period aft it said it planned to marque 50,000 vehicles this year, which was beneath the estimates of investors. It is unclear however Amazon’s tiny bid volition impact the company’s existent transportation targets. Whether breaking retired of its exclusivity woody volition assistance the institution merchantability to different customers remains to beryllium seen.

Investors are wary astir the determination truthful far, with shares falling 3 percent successful pre-market trading. Amazon doesn’t look opposed to it, though. In comments to Reuters, a spokesperson said, “While thing has changed with our statement with Rivian, we person ever said we privation others to payment from their exertion successful the agelong run.”

 Rivian Looking To Break Amazon Exclusivity Deal And Sell Delivery Vans To Other Customers
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