Rivian and Amazon in Talks to End Exclusivity Agreement
Rivian Automotive (NASDAQ:RIVN) and Amazon.com Inc (NASDAQ:AMZN) are in talks to end their exclusivity agreement, the Wall Street Journal reported Monday, citing people familiar with the matter. Under the terms of the 2019 deal, Rivian is required to sell all of the electric vans it makes to Amazon. However, the ecommerce giant recently informed the automaker that it only wants to purchase 10,000 vans this year, which is at the low end of a range previously provided. This has led Rivian to seek to terminate the exclusivity terms.
In response to the news, an Amazon spokeswoman told the Wall Street Journal that the company still plans to buy 100,000 vans from Rivian by 2030, while a Rivian spokeswoman said the relationship between the two “has always been a positive one.”
This comes at a time when the market for electric vehicles is growing rapidly. Rivian recently touted 10 million packages delivered via the vans, and the company remains an important partner for Amazon. With the possibility of selling to other customers, it remains to be seen how the company will be able to capitalize on the growth in the EV market.
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2. “Amazon and Rivian are in talks on ending their exclusivity agreement: WSJ” MarketWatch, 13 Mar. 2023, https://www.marketwatch.com/story/amazon-and-rivian-are-in-talks-on-ending-their-exclusivity-agreement-wsj-3e1ec499
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