In today’s hyper-connected world, the ease of access granted by Amazon’s Prime delivery service allows consumer goods to reach people faster than ever before.
Even if you do not shop on Amazon, the impact is very easy to see. The vans painted in the company’s signature blue-grey are as ubiquitous on city and suburban streets as brown UPS trucks and white, boxy postal vans.
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In 2019, Tesla rival Rivian (RIVN) inked a deal with Amazon that saw the EV maker dive head first into a deal that set the foundation for an entirely new venture, as the makes of electric “adventure vehicles” would branch out into the realm of commercial vehicles.
As part of a $1 billion investment in Rivian, Amazon agreed to buy 100,000 vans by 2030. Under the terms, the Seattle-based e-commerce giant would be its exclusive customer. However, in 2023, the two companies would end the exclusivity period, which enabled Rivian to sell its vans to other businesses.
Rivian
You can have a Rivian van, too [if you own a business]
Since its exclusivity clause with Amazon ended, Rivian has been hard at work securing contracts for large orders of its bug-eyed electric vans. In December 2023, it secured a deal to supply AT&T with a fleet of electric vans, which the telecom giant says will help it achieve carbon neutrality.
In a recent announcement, Rivian said it opened up sales of its electric delivery vans to business fleets of all sizes in the United States.
Rivian Commercial Vans (RCV) come in two sizes: the smaller RCV500 and the bigger RCV700. While the two look very similar, the smaller van can accommodate a larger payload (2,663 lbs vs. 2,258) but has less actual cargo space inside (487 cubic feet vs. 652).
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Underneath the skin of the vans is a 100 kWh lithium iron phosphate battery pack that powers an electric motor that makes 315 horsepower and 299 lb-ft of torque to the front wheels. Both of the vans get an effective electric range of 160 miles. Rivian says it will accommodate buyers who want just one van to entire fleets of thousands. However, it insists that the vans cannot be for personal use and must be registered to an actual business. Unfortunately, that means that #vanlife camper conversion wannabes need not apply.
The Rivian has one sticking issue against its biggest rivals
Commercial vans are a lucrative market for automakers, and the market is dominated by two players: Mercedes-Benz (MBGAF) and Ford (F) . Their respective Sprinter and Transit vans are icons among business fleet owners worldwide and are both offered in electric variants.
According to its data, sales of Ford's E-Transit, the electric version of the Transit van, accounted for 12,610 units out of the roughly 150,000 commercial vans it sold in the United States in 2024. That number represents a 64% year-over-year jump.
Rivian has one disadvantage against its competitors: price. The RCV 500 starts at a whopping $79,900, while the longer RCV 700 starts at $83,900.
In comparison, Ford's E-Transit Cargo Van starts at $52,835 before fleet owners tailor with the different configurations for their specific needs. Mercedes' E-Sprinter also falls below the Rivian, starting at $61,180.
Individually, both of the competitor's electric vans offer some sort of advantage over the Rivian. Mercedes' E-Sprinter offers more available electric range; its optional 113 kW battery enables up to 250 miles between charges. Meanwhile, the Ford offers similar range to the Rivian but can carry a much heavier payload.
The Amazon connection
But according to those who actually use these vehicles, what separates the Rivian from the Transit or the Sprinter is its conveniences.
In an August 2024 video by YouTuber and Amazon DSP driver Chris Sing, he praises many of the van's features including its keyless entry, heated and cooling driver's seat, its air conditioning system and automatic electric cargo door, but most importantly, how seamless the van works with his job.
"[After a delivery], the EV sets itself up for me to get to my next stop as efficient as possible," Sing said in his video. "[...] All we gotta do is put it in drive, and start travel."
In a thread on the r/AmazonDSPDrivers subreddit, other drivers sung similar praises.
"[...] the best part for me is being able to see your whole entire route on the screen at all times," Reddit user and self-reported former Amazon DSP driver u/Bo-Jangles0209 said. "Eliminates half the problems of the sh---y phones they give us to use. Be the first person to sign up for training when you get the chance. I was as skeptical as anyone, but this thing is the GOAT delivery vehicle."
"They’re so nice to drive! They’re super zippy especially when going from one house to the next in residential areas," Reddit user u/timeatt said.
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The high praise from Amazon drivers could be likely due to having Rivian as a very close partner. Since its investment at the start of the Electric Delivery Van (EDV) program, Amazon has been one of Rivian's largest investors, as it owns around 16% of the company's shares.
Additionally, Rivian noted that it has tailor-made its vans for Amazon, denoting in a July 2022 blog entry that its EDVs "are the result of intense research, prototyping and field-testing, all in close collaboration with Amazon drivers and fleet managers," which included integrating its software with Rivian's own software stack.
"We wanted to make sure drivers loved to use these vans. That meant optimizing each small experience," Gavin Goodchild, Rivian's VP of vehicle attributes said.
In its announcement, Rivian says its software stack controls "nearly every interaction, from unlocking the vehicle and opening the door, to charging and acceleration," and that it can help fleet owners "streamline the ownership experience, and minimize costs, while increasing safety and productivity."
"Over the last year we have been focusing our efforts on testing with some larger fleets, and we’re really pleased with how those trials have gone." Tom Solomon, Rivian's Senior Director of Business Development said. "Our vehicles are designed to not only be among the safest on the road, but will also help fleet owners to reduce the cost of fleet ownership and their carbon footprint."
In a message to TheStreet, Rivian clarified details of its partnership with Amazon. The article has been edited to reflect those details.
Rivian Automotive, Inc. is listed on the NASDAQ as (RIVN) .
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