Amazon's Exclusivity Agreement With Rivian For Electric Delivery Trucks Is Being Reviewed

According to a company spokeswoman on Monday, Rivian and Amazon are in talks to modify the exclusivity condition of their contract for the EV manufacturer's electric delivery vehicles.

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In order to speed up manufacturing of the vans as well as its R1 series pickup and SUV, Rivian would be able to court new customers if the exclusive clause of the agreement were removed. The business also needs money because it is developing the upcoming R2 model. The development and launch of R2 will be financed in part by the $1.3 billion in convertible notes that Rivian revealed last week would be sold.

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According to a statement from Rivian spokeswoman Marina Norville, the company's relationship with Amazon has been and remains positive.

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Like many other businesses, "we keep working closely together while managing a shifting economic context," she said.

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In 2019, Rivian and Amazon reached an agreement under which the e-commerce behemoth would receive 100,000 electrified trucks. Rivian announced last month that 10 million parcels had been delivered by the vans since Amazon started using them to deliver packages in July.

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Trade Algo, which first revealed the discussions to break exclusivity, claims that Amazon, Rivian's largest shareholder, has subsequently been disappointed with its order figures and told Rivian it wants to buy about 10,000 vehicles this year, which is the low end of a previously indicated range.

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According to a statement sent to Trade Algo by Amazon, the initial commitment of 10,000 vehicles has not changed, nor has the company's relationship with Rivian.

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No changes have been made to our agreement with Rivian, but we continue to believe that others should eventually get access to their technology because more electric delivery cars on the road benefit both our communities and the environment, according to an Amazon representative.

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Early on Monday, the price of Rivian's shares decreased by about 3%.