How Rivian Is Helping Amazon to Electrify Its Fleet

As the United States, the United Kingdom and other large economies pledged to transition from dirty fuels to clean energy and electrify their lineups, major companies such as Amazon are following suit. The e-commerce giant plans on electrifying its entire fleet of delivery vans over the decade to cut emissions from transportation.

At the time of writing, Amazon had integrated more than 5,000 electric cars into its fleet with EV company Rivian acting as the primary supplier. Crossing the 5,000 mark represents a significant milestone for the two companies and indicates that the electrification of Amazon’s fleet is well on its way.

Amazon partnered with electric van manufacturer Rivian in 2021, kicking off the start of electric van deliveries to the world’s largest e-commerce company in the U.S. The partnership started with a trial period where Amazon tested the capabilities of Rivian Electric Delivery Van (EDV) prototypes before placing an order of 100,000 electric vans from Rivian. Amazon hopes to have all 100,000 electric vans on the road by 2030 as part of its pledge to achieve net-zero emissions by 2040.

The online retailer is one of the largest emitters of carbon in the country, releasing around 71.54 million tons of carbon dioxide in 2021 amid rapid expansion due to the pandemic. According to Amazon, more than 5,000 EDVs from Rivian are currently in operation in 800 locations across the continental U.S.

This announcement coupled with Rivian exceeding its quarterly electric vehicle delivery quotas over the last quarter led to an increase in the EV maker’s share prices.

However, despite exceeding EV delivery quotas, Rivian has been plagued with issues such as production delays, supply chain constraints and sustained losses. As with most automakers, Rivian also had to contend with the global semiconductor shortage that crippled the auto supply chain and forced several automakers to halt production until they could find alternative semiconductor sources.

Rivian was unable to meet its 2022 production estimates but weathered supply chain shortages and even factory fires to reduce production and wait times. Reducing its delivery wait times has allowed Rivian to begin catching up to its previously missed annual delivery goals. With the entirety of Amazon’s electric fleet coming from Rivian, it is clear that the EV maker has been integral to the online retailer’s electrification efforts.

Amazon’s delivery fleet of more than 40,000 vehicles is mainly comprised of gas-powered internal combustion engine cars. Electrifying its entire fleet will allow the online retail giant to significantly reduce its carbon emissions and take it a step closer to achieving its net-zero carbon goals.

If other EV manufacturers such as ElectraMeccanica Vehicles Corp. Ltd. (NASDAQ: SOLO) could get large orders similar to what Rivian secured from Amazon, the push for electrification may progress at a faster rate and put the brakes on climate change sooner.

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