Amazon, Rivian in Talks to End Exclusivity Part of Delivery-Van Pact via WSJ
– After $AMZN order for 2023 at the low end of previously provided range
– Amazon is Rivian’s largest shareholder, with 17% of $RIVN
Amazon. com Inc. and Rivian Automotive Inc. are in talks to scrap the exclusivity part of their electric-van deal, after the online retailer’s order for 2023 came in at the low end of a previously provided range, according to people familiar with the matter.
Under terms of a 2019 agreement, Rivian is required to sell all of the vans it makes to Amazon. In recent months, Amazon notified Rivian that it wanted to buy about 10,000 vans this year, which was the low end of a range Amazon had communicated earlier to the auto maker, the people said.
In response, Rivian sought to remove the exclusivity terms, which would allow the company to sell its delivery vans to other customers, the people said. Talks are ongoing, they said.
An Amazon spokeswoman said the company remains committed to buying 100,000 vans from Rivian by 2030, which were the terms outlined in the original agreement. “Rivian remains an important partner for Amazon, and we’re excited about the future,” she said.
A Rivian spokeswoman said: “Our relationship with Amazon has always been a positive one. We continue to work closely together and are navigating a changing economic climate, similar to many companies.”
Executives at both companies have touted the deal, which gave Rivian an anchor customer and Amazon a key component of its pledge to slash carbon emissions. Amazon is Rivian’s largest shareholder, with a 17% stake in the company, according to FactSet, and Amazon is on Rivian’s board of directors.
In afternoon trading Monday, Rivian shares fell around 4%. Amazon shares were up 2.2%.