Otis Singleton
In 2019, Amazon announced it was ordering 100,000 electric delivery vehicles from US electric-vehicle startup Rivian. The order, which was confirmed by Amazon's senior vice president of operations, David Clark, is the largest purchase of light-duty electric vehicles in history. Amazon's move came as part of a climate pledge to ensure its operations emitted net-zero greenhouse gases by 2040.
| Characteristics | Values |
|---|---|
| Number of vehicles | 100,000 |
| Type of vehicle | Electric delivery vans |
| Company | Rivian |
| Rivian's location | Michigan |
| Year of the order | 2019 |
| Year the vehicles are expected to be on the road | 2024 |
| Year prototypes are expected to be on the road | 2020–2021 |
| Investment in Rivian | $700 million |
| Other investors in Rivian | Ford, Cox Automotive |
| Amount raised by Rivian | $1.7 billion |
| Price of Rivian's vehicles | Around $70,000 |
| Mileage on a single charge | 400 miles |
| Time to hit 60 miles per hour | Under three seconds |
| Self-driving capacity | Yes |
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What You'll Learn
Amazon's Climate Pledge
In 2019, Amazon co-founded The Climate Pledge with Global Optimism. The pledge is a commitment to reach net-zero carbon emissions across the company's operations by 2040, a decade ahead of the Paris Climate Agreement. Amazon has committed to making its operations net-zero greenhouse gas before the middle of the century through the use of electric vehicles, reforestation, and renewable energy.
The Climate Pledge Fund, started with a $2 billion investment from Amazon, will support the development of sustainable technologies and services. The fund will invest in companies creating products and services to protect the planet and accelerate the transition to a net-zero carbon economy. Amazon has also launched a carbon credit service, enabling access to high-quality credits for qualified companies.
As part of its pledge, Amazon is also making it easier for customers to shop more sustainably. The Climate Pledge Friendly label indicates that products have one or more of 55 different sustainability certifications. Amazon is also providing information and guidance through the Sustainability Exchange, which offers science-based carbon credits to suppliers, business customers, and Climate Pledge signatories.
In line with its Climate Pledge, Amazon has ordered 100,000 electric delivery vans from the US electric vehicle startup Rivian. This is the largest purchase of light-duty electric vehicles in history and represents a turning point for the EV market. Amazon aims to make its first deliveries with the new vehicles by 2021 and have all of the new trucks on the road by 2030. This purchase is part of Amazon's plan to convert its delivery fleet to 100% renewable energy by 2030.
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Rivian's vehicles
In 2019, Amazon announced that it would be ordering 100,000 electric delivery vans from the Michigan-based EV startup Rivian. This was part of Amazon's plan to convert its delivery fleet to 100% renewable energy by 2030 and reduce its carbon footprint. The first vans were expected to hit the road in 2021, with 10,000 vehicles on the road by late 2022, and the full 100,000 by 2024. This order represented the largest purchase of light-duty electric vehicles (EVs) in history, with Amazon's fleet in Europe and North America expected to double as a result.
Rivian is an electric vehicle manufacturer headquartered in California. The company has designed and produced two vehicles so far: the R1T pickup and the R1S SUV. Both vehicles are built on the same technological platform and are claimed to be able to travel up to around 400 miles on a single charge, hit 60 miles per hour in under three seconds, and eventually drive themselves in some capacity. The R1T pickup truck debuted first, followed by the R1S SUV. Both vehicles can tackle rough terrain and offer a host of tech features. The R1T, for example, has impressive acceleration and a range of up to 420 miles. It also has usable bed space, room for five people, and a max 220-kW DC fast-charging capability. The R1S SUV, on the other hand, blends massive power with an impressive range but faces competitors with thriftier pricing.
Rivian has also been working on the R3 and R3X, which will be the company's entry-level offerings, likely as 2027 models. Additionally, they have a commercial van available for purchase by customers outside of the Amazon bubble. The company has raised $1.7 billion in funding, including major investments from Amazon, Ford, and Cox Automotive.
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Jeff Bezos' announcement
In 2019, Amazon CEO Jeff Bezos announced that the company had placed an order for 100,000 electric delivery vans from Michigan-based startup Rivian Automotive. The announcement was made during an event in Washington, DC, where Bezos unveiled Amazon's plan to tackle climate change and reduce its carbon footprint.
Bezos emphasized the environmental impact of this decision, stating that Amazon aims to make its fleet run entirely on renewable energy by 2030. The company already operated 40% of its fleet on renewable energy at the time of the announcement. The order for electric vehicles is the largest of its kind and represents a significant step towards Amazon's goal of net-zero greenhouse gas emissions by 2040.
Rivian, founded by RJ Scaringe, is a relatively new player in the electric vehicle industry. The company debuted its pickup truck and SUV in November 2018 but has been operating discreetly since 2009. Originally, Rivian aimed to compete with Tesla's first car, the Lotus-based Roadster. However, they eventually shifted their focus to electric trucks and SUVs tailored for outdoor adventures.
Bezos' announcement also revealed a third vehicle in Rivian's lineup: a delivery van. This indicated that Rivian would be expanding beyond the off-road segment and into commercial vehicles. Amazon's investment in Rivian is strategic, as the electric vehicle company has been gaining traction in Silicon Valley. Amazon led a \$700 million funding round for Rivian in February, although the exact amount contributed by Amazon was not disclosed.
The first Rivian vans are expected to hit the road in 2021, with prototypes possibly arriving as early as 2020. By late 2022, 10,000 vehicles are projected to be in operation, and by 2024, all 100,000 vans should be deployed. This order from Amazon is a significant milestone for the EV market and is expected to accelerate the electrification of fleets globally.
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Amazon's electric vehicle market impact
Amazon's order of 100,000 electric delivery trucks from US electric vehicle startup Rivian is a significant move in the company's efforts to reduce its carbon footprint and transition to renewable energy. This order, the largest purchase of light-duty electric vehicles in history, is expected to double the number of electric commercial trucks in Europe and North America, accelerating the electrification of fleets globally.
Amazon's commitment to electric vehicles is evident in its plan to convert its delivery fleet to 100% renewable energy by 2030, with a net-zero carbon emissions goal by 2040. The company has already made progress, with 40% of its fleet running on renewable energy. Amazon's investment in Rivian, including a $700 million funding round, has been hailed as a significant milestone for the EV market, potentially rivalling Tesla.
Rivian, a Michigan-based startup, has developed innovative electric vehicles, including the R1T pickup and R1S SUV, with impressive specifications such as a range of over 400 miles and rapid acceleration. Amazon's order of 100,000 electric delivery vans from Rivian, with the first deliveries expected by 2021, showcases the company's dedication to sustainability and reducing emissions.
The impact of Amazon's decision extends beyond its own operations. The company's scale and influence in the market are expected to accelerate the adoption of electric vehicles by other companies, as they demonstrate that it is feasible to transition to renewable energy on a large scale. Amazon's sustainability efforts also include exploring other electric transport solutions, such as electric cargo bikes and drones, and three-wheel electric vehicles in India, showcasing their commitment to reducing emissions in last-mile delivery.
Overall, Amazon's order of 100,000 electric vehicles from Rivian is a significant step towards the company's sustainability goals and has broader implications for the electric vehicle market, encouraging the electrification of fleets and potentially influencing other companies to follow suit.
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Amazon's 2030 goal
Amazon has ordered 100,000 electric delivery vans from the Michigan-based startup Rivian Automotive. This is part of Amazon's plan to convert its delivery fleet to 100% renewable energy by 2030 and to eliminate the carbon footprint of the company by 2040. The first vans will be on the road by 2021, with 10,000 vehicles on the road by late 2022, and 100,000 deployed by 2024. This order represents the largest purchase of light-duty electric vehicles in history and is expected to double the number of electric commercial trucks in Europe and North America.
Amazon's other sustainability goals include:
- Reducing food waste intensity across Europe and US operations by 50% by 2030
- Making AWS water positive by 2030
- Removing 95% of plastic air pillows from delivery packaging in North America by the end of 2024
- Investing in conservation and restoration initiatives, such as mobilizing $1 billion+ to protect tropical rainforests worldwide and creating the $100M Right Now Climate Fund to restore and conserve forests, wetlands, and grasslands
- Reducing the average weight of single-use plastic packaging per shipment across its global operations network
- Shipping 12% of packages globally without additional Amazon packaging as part of the Ships in Product Packaging program in 2023
- Continuing to invest in solar and wind projects, with more than 500 projects globally that can power 7.6 million US homes each year
Amazon's top priorities for 2025 include advancements in delivery, AI integration, and international seller support. Amazon is investing in cutting-edge technology like drones to improve delivery times, with its Prime Air drone delivery service already active in the USA and set to expand to Italy and the UK in 2025. The company is also working on enhancing its Amazon Fresh grocery delivery service and leveraging its fulfillment strength to gain market share in the US supermarket sector.
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Frequently asked questions
Amazon placed an order for 100,000 electric vehicles with US electric-vehicle startup Rivian Automotive.
Amazon placed the order as part of its Climate Pledge, aiming to make its delivery fleet run on 100% renewable energy and to be carbon neutral by 2040.
Amazon announced the order on September 19, 2019, during an event in Washington, DC.
