Rivian to Deliver Electric Vans to Companies Other Than Amazon in 2023
Rivian did the impossible by beating General Motors and Ford to the punch with an electric pickup truck. While the R1T pickup truck is Rivian's main draw and the R1S SUV is sure to bring in quite a few shoppers, what really got the company off the ground is its deal with Amazon for electric vans. Originally, Rivian's fleet business appeared to be exclusive to Amazon, but that doesn't seem to be the case anymore.
Rivian Now Offering Fleet Sales
Before going public, Rivian added a new page to its website. The section labeled "Fleet," has "Efficient, sustainable solutions for your business and the planet." While there's a lot of confusing information on the site that outlines all of the ways Rivian's fleet services are meant to help businesses, there are a few important notes. Rivian plans to sell fleet versions of the R1T truck, R1S SUV, and electric van.
The fleet version of the R1T electric truck will better help Rivian compete with the Ford F-150 Lightning, which will also be offered in a fleet version. While the pickup truck is sure to bring in a lot of businesses, the main draw will be the available electric van. Selling an electric van for customers beyond Amazon will help Rivian enter another segment that has little competition at the moment. The electric vans are sure to be great ways for Rivian to make money.
Rivian claims its fleet vehicles will feature the brand's RCV platform. The platform houses the chassis, braking, suspension, drivetrain, cooling systems, and battery for its commercial van. The automaker states that the platform will help fleet customers modernize their fleet. When properly equipped, Rivian's electric van will be able to haul between 1,960 pounds to 5,300 pounds and hold between 450 and 900 cubic feet of cargo.
Possible Issues For Rivian
Offering electric vans to fleet customers is good news for Rivian and business companies, but the company will be hard at work on fulfilling its initial contract with Amazon. Rivian has a current contract with Amazon for 100,000 electric vans that will be delivered by 2024. For other companies, Rivian plans to start accepting orders for fleet vehicles in 2022 and will start delivering them in 2023.
There's one major problem with Rivian's decision to open up fleet orders to companies: production. Rivian's main factory in Normal, Illinois is rated to produce up to 150,000 vehicles a year. The split includes 65,000 R1T and R1S EVs, along with 85,000 commercial vans. While Rivian probably won't run into production issues within the first few years, it could run into problems down the road depending on how many orders it receives.
Large companies have been looking for electric commercial vans to make their deliveries more environmentally friendly. FedEx is working with General Motors, while BrightDrop and UPS have invested in Arrival, and Ford has plans to offer its electric Transit for commercial use.
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