Rivian is set to accelerate production and delivery of its Electric Delivery Van (EDV), currently exclusive to Amazon, by targeting additional customers to justify the increased output.
In the Q2 Earnings Call, Rivian highlighted the future significance of the EDV in its business strategy, contingent on sufficient demand for the all-electric delivery vans. While the market has limited electric van options beyond Ford’s Transit and Mercedes-Benz’s Sprinter, Rivian aims to establish the EDV as a formidable competitor.
Having initially launched the EDV in select regions, Rivian expanded its reach across the United States, with over 15,000 units now in use by Amazon for deliveries. The company now seeks to broaden its customer base as it moves beyond the initial testing phase.
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“And this focus on pilots is really reflective of the nature of this business, where these are large decisions around large numbers of vehicles for a lot of these bigger fleets. And it’s appropriate that we build effective working models for how the vehicles are serviced, what digital support the vehicles have, what infrastructure changes are necessary for each respective fleet,” said Rivian CEO RJ Scaringe.
In December 2023, Rivian announced a partnership with AT&T, marking the EDV’s introduction to its first non-Amazon customer.
“We’re excited to purchase Rivian EVs for our fleet. This pilot is another important step in our ongoing efforts toward sustainability, reducing our carbon footprint and embracing a cleaner future for our operations,” said Hardmon Williams, Senior Vice President at AT&T Connected Solutions.
Potential future customers for the EDV might include logistics giants such as FedEx or UPS, which could find the van suitable for next-day and priority deliveries. FedEx currently employs non-electric Mercedes-Benz Sprinter vans for its operations.
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As Rivian looks to expand its market reach, securing additional partnerships will be crucial in validating the EDV’s versatility and performance in varied operational environments.
