Umair Gaines
Amazon has ordered 100,000 electric delivery vans from EV startup Rivian, with the first vans hitting the road in 2021. The company plans to have all 100,000 vehicles in operation by 2030, saving millions of metric tons of carbon per year by 2030. Amazon's custom electric delivery vehicles are built on Rivian's customizable skateboard platform and can drive up to 150 miles on a single charge. This move is part of Amazon's Climate Pledge to achieve net-zero carbon across its operations by 2040, a decade ahead of the Paris Agreement.
| Characteristics | Values |
|---|---|
| Number of electric vehicles ordered | 100,000 |
| Supplier | Rivian |
| Supplier's location | Michigan, US |
| Supplier's CEO | RJ Scaringe |
| Supplier's vehicle range | 400 miles on a single charge |
| Supplier's vehicle acceleration | 0-60 mph in under 3 seconds |
| Supplier's vehicle autonomy | Yes |
| Supplier's vehicle starting price | $70,000 |
| Date of order | 2019 |
| Date of delivery | 2021 |
| Date for all vehicles on the road | 2030 |
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What You'll Learn
Amazon's electric vehicle maker, Rivian
Amazon has partnered with electric vehicle maker Rivian to produce 100,000 electric delivery vans. Amazon has a 20% stake in the company, which is based in Irvine, California, and has a factory in Michigan. The online retail giant has ordered 100,000 electric delivery vehicles to be supplied by 2030, with 10,000 expected to be on the road as early as 2022. Amazon has invested more than $1.3 billion in Rivian to date, and the company has raised funds from other major players, including Ford Motors and Cox Automotive.
Rivian's electric delivery van for Amazon is designed to be highly efficient, with an estimated range of 150 miles on a single charge. The vehicle is also designed to optimize time and energy, with features such as cabin heating, driver ergonomics, and drivetrain design. Amazon has integrated its Alexa voice assistant into the vans, allowing drivers to use voice commands for sorting packages without consulting handheld devices. The company has also installed thousands of electric vehicle charging stations at its delivery stations across North America and Europe to accommodate the new fleet.
In November 2023, Rivian announced that it would end its exclusive agreement with Amazon and allow other companies to purchase its fleet of delivery vans. This decision provides other businesses with the opportunity to electrify their delivery fleets and reduce carbon emissions. Amazon, which still owns a 17% stake in Rivian, has stated that this development aligns with its long-term plan to benefit other companies and communities through Rivian's technology while also reducing carbon emissions.
Amazon's partnership with Rivian is part of its broader commitment to sustainability and achieving net-zero carbon across its operations by 2040. The company is exploring new technologies, alternative fuels, and delivery methods to build the world's most sustainable transportation fleet. Amazon delivered over 20 million packages in electric delivery vehicles across North America and Europe in 2020 and continues to expand its use of these vehicles.
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Amazon's $700 million investment in Rivian
Amazon has been investing in companies with high growth potential to help them expand their market share. In line with this strategy, Amazon led a $700 million funding round for Rivian in February 2019, marking Amazon's largest investment in an electric vehicle startup.
Rivian, a startup in the electric vehicle space, has been making waves in the industry. The company raised $700 million in funding, led by Amazon CEO Jeff Bezos, and announced plans to release an electric pickup truck by 2021. Rivian has been in the news as it's rumoured to be building vehicles exclusively for Amazon. As part of Amazon's ongoing efforts to deliver goods more quickly and efficiently, the company has reportedly ordered thousands of Rivian R1Ts (a pickup truck with a 300-mile range and 400 horsepower) and R1S SUVs.
Amazon's investment in Rivian is part of its broader strategy to transform its transportation network and achieve net-zero carbon across its operations by 2040, a decade ahead of the Paris Agreement. To meet this goal, Amazon is exploring new technologies, alternative fuels, and delivery methods to reduce its carbon footprint.
The investment has been mutually beneficial, with Rivian experiencing exponential growth since the funding round in 2019. Rivian has raised a total of $10.5 billion as of July 2021, including a $2.5 billion private funding round led by Amazon's Climate Pledge Fund, D1 Capital Partners, Ford Motor Company, and other investors. Amazon's backing has provided Rivian with the resources to develop cutting-edge technology in the electric vehicle space, while Amazon gains access to this technology to support its sustainability initiatives.
In addition to Amazon, Rivian has also secured investments from other major players, including Ford Motor Company, Cox Automotive, and ALJ, a Saudi company. These investments have allowed Rivian to develop a range of electric vehicles, including the R1T pickup truck and the R1S SUV, which are expected to have impressive performance and range capabilities.
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Amazon's goal to achieve net-zero carbon by 2040
Amazon has committed to achieving net-zero carbon emissions by 2040, a decade ahead of the Paris Agreement. To reach this goal, the company is transforming its transportation network and investing in renewable energy projects.
As part of its efforts to reduce carbon emissions, Amazon has partnered with Rivian, a Michigan-based EV startup, to develop and test custom electric delivery vehicles. Amazon has ordered 100,000 of these vans, which are expected to save millions of metric tons of carbon per year when fully deployed by 2030. The current fleet of vehicles can drive up to 150 miles on a single charge. Amazon has also started installing electric vehicle charging stations at its delivery stations across North America and Europe.
In addition to transitioning to electric vehicles, Amazon is exploring new technologies, alternative fuels, and delivery methods to reduce emissions. This includes the use of cargo e-bikes and on-foot deliveries. The company is also expanding the use of zero-emission transportation and scaling electric and alternative-fuel vehicles across its business.
Amazon has also set interim goals and identified key areas for decarbonization, such as delivery and logistics, building construction and operations, servers and hardware, products and services, and packaging. The company has committed to making its buildings more energy-efficient and increasing the use of sustainable building materials.
Furthermore, Amazon co-founded The Climate Pledge Fund, a $2 billion venture investment program supporting sustainable technologies and services. The company is also investing in renewable energy projects, with a particular focus on wind and solar energy. In 2022, 90% of the electricity consumed by Amazon came from renewable sources, and the company has pledged to reach 100% renewable energy by 2030.
Amazon's efforts towards net-zero carbon emissions by 2040 demonstrate its commitment to using its size and scale to address climate change and inspire other companies to take ambitious climate action.
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The integration of Amazon Alexa in the vehicles
Amazon has placed an order for 100,000 electric delivery vans from the Michigan-based startup Rivian. The company aims to build the world's most sustainable transportation fleet, with the current fleet of vehicles being built at Rivian's studio in Plymouth, Michigan.
Amazon's integration of Alexa in its vehicles is a part of its transformation of its transportation network to achieve net-zero carbon across its operations by 2040. Alexa Built-in integration is being used in Amazon's electric delivery vehicles, which will enable drivers to use voice commands to sort packages without manually entering commands or consulting handheld devices.
Alexa Built-in is also offered on a range of BMW vehicles from the 2018 model year onwards, including the BMW iX, iX3, and i4. It is integrated with the car's existing voice command button on the steering wheel and works with the BMW ConnectedDrive account and the My BMW smartphone app.
In addition to BMW, Buick, and Cadillac also offer Alexa integration in select models, allowing drivers and passengers to use voice commands to play music, get directions, control smart home devices, access news, and more. Amazon Smart Vehicles offers two unique products: Alexa Built-in and Alexa Custom Assistant. Alexa Built-in is portable across every OS, while Alexa Custom Assistant enables automakers to create a unique assistant with its own skills, personality, voice, and wake word.
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The testing and development of the vehicles
Amazon has partnered with EV startup Rivian to supply 100,000 electric delivery vans. This is the largest purchase of light-duty electric vehicles in history, and a turning point for the EV market.
Rivian's vehicles are built on a customizable skateboard platform, which Amazon has leveraged to create a first-of-its-kind all-electric delivery vehicle. The current fleet of vehicles was built at Rivian's studio in Plymouth, Michigan, and can drive up to 150 miles on a single charge.
Amazon and Rivian began testing vehicles four months before making customer deliveries, as part of the testing and development process. Amazon is working with Rivian to conduct additional testing of the vehicle’s performance and safety durability in various climates and geographies. Engineers continue to refine the vehicles for the start of production, slated for the end of 2021.
Amazon has also started getting its buildings ready to accommodate the new fleet of vehicles and has installed thousands of electric vehicle charging stations at its delivery stations across North America and Europe. The company has also been redesigning its delivery stations to service electric vehicles—ranging from the electrical design to the physical layout.
The development of the electric delivery van will enable Amazon to build the world’s most sustainable fleet, according to Ross Rachey, director of Amazon’s global fleet and products. Every aspect of the vehicle design has been optimized for time and energy, from cabin heating to driver ergonomics to drivetrain design.
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Frequently asked questions
Amazon is sourcing 100,000 electric delivery vans from the US electric vehicle startup Rivian.
Rivian is a Michigan-based startup that has raised $1.7 billion in funding, including major investments from Amazon, Ford, and Cox Automotive.
Amazon is committed to achieving net-zero carbon across its operations by 2040, a decade ahead of the Paris Agreement, as part of its Climate Pledge.
Amazon's custom electric delivery vehicles began testing in 2020, with the first vans hitting the road in 2021. The company plans to have 10,000 of the vehicles on the road by 2022 and all 100,000 by 2030.
The vans are built on Rivian's customizable skateboard platform and can drive up to 150 miles on a single charge. They are integrated with Amazon Alexa, allowing drivers to use voice commands in the cargo bay.
