Photo: Rivian
Rivian has been seeking to end its exclusive deal with Amazon for its Electric Delivery Van (EDV). The moment has finally arrived, and the cute electric van is now offered to all fleet operators under the Rivian Commercial Van name. The $83,000 starting price for a 161-mile range electric van seems bold, but Rivian is on to something here.
Rivian started operations tanks to a sizeable financial backup from Amazon, which pledged to buy 100,000 electric delivery vans built by the adventurous startup by 2030. So far, only about 10,000 EDVs have been delivered to Amazon, and the retail giant's smaller-than-expected orders have irked the EV startup. In March, Rivian was already seeking to end the exclusivity deal with Amazon, an effort that proved successful in the end. During the third quarter earnings call, Rivian announced its electric vans will be offered to other fleet operators.
The announcement might free Rivian from a deal that limits its EDV's addressable market, but we don't know all the details. The exclusivity deal stipulated that Rivian could not sell the EDVs to other companies for four years after the start of production, which was in December 2021. Cutting this term in half must've incurred some penalties for Rivian, which also explains the high prices of the electric delivery vans.
The electric delivery van (now called Rivian Commercial Van or RCV) starts at $83,000 for the smaller RCV Delivery 500 variant. This is similar to the EDV-500 delivered to Amazon in Europe. The RCV Delivery 700 mimics the EDV-700 and has a starting price of $87,000. For comparison, the Ford e-Transit High Roof, which has a similar cargo capacity to the RCV Delivery 500, has a starting price of $54,995.
Rivian's electric vans have some clear advantages over Ford, as they are packed to the brim with technology and features, while the e-Transit is basically naked. Rivian has optimized its vans for last-mile deliveries within cities, and the driver's experience reflects that. Amazon delivery drivers have praised its features and safety, and the fleet management tools Rivian offers are unique in the market. Even at these prices, the RCVs are a good value for money for fleet operators. There are also discounts that fleet buyers get based on the order size and packages.
Rivian vans have another advantage compared to Ford e-Transit, as they can go further between charges. The RCV Delivery 500 has a 161-mile range, while the Delivery 700 has a 153-mile range. It might not seem much, but the similarly-sized Ford e-Transit only offers 108 miles of range. The thing is, the range is not that important in this segment, as the delivery vans don't need to travel long distances. They are designed for stop-and-go scenarios, where they travel small distances and spend a lot of time parked.
That's why these electric vans don't make a great base for an electric camper. Many Rivian fans think not offering the RCV as a camper is a mistake, but Rivian hasn't made many mistakes so far. A camper van needs more range to travel between camping sites than 160 miles, that's for sure. Companies that make van conversions also start with less expensive configurations because the camping equipment is already pretty expensive. Time will tell if anyone will be interested in purchasing Rivian's vans and turning them into electric campers.
The announcement might free Rivian from a deal that limits its EDV's addressable market, but we don't know all the details. The exclusivity deal stipulated that Rivian could not sell the EDVs to other companies for four years after the start of production, which was in December 2021. Cutting this term in half must've incurred some penalties for Rivian, which also explains the high prices of the electric delivery vans.
The electric delivery van (now called Rivian Commercial Van or RCV) starts at $83,000 for the smaller RCV Delivery 500 variant. This is similar to the EDV-500 delivered to Amazon in Europe. The RCV Delivery 700 mimics the EDV-700 and has a starting price of $87,000. For comparison, the Ford e-Transit High Roof, which has a similar cargo capacity to the RCV Delivery 500, has a starting price of $54,995.
Rivian's electric vans have some clear advantages over Ford, as they are packed to the brim with technology and features, while the e-Transit is basically naked. Rivian has optimized its vans for last-mile deliveries within cities, and the driver's experience reflects that. Amazon delivery drivers have praised its features and safety, and the fleet management tools Rivian offers are unique in the market. Even at these prices, the RCVs are a good value for money for fleet operators. There are also discounts that fleet buyers get based on the order size and packages.
Rivian vans have another advantage compared to Ford e-Transit, as they can go further between charges. The RCV Delivery 500 has a 161-mile range, while the Delivery 700 has a 153-mile range. It might not seem much, but the similarly-sized Ford e-Transit only offers 108 miles of range. The thing is, the range is not that important in this segment, as the delivery vans don't need to travel long distances. They are designed for stop-and-go scenarios, where they travel small distances and spend a lot of time parked.
That's why these electric vans don't make a great base for an electric camper. Many Rivian fans think not offering the RCV as a camper is a mistake, but Rivian hasn't made many mistakes so far. A camper van needs more range to travel between camping sites than 160 miles, that's for sure. Companies that make van conversions also start with less expensive configurations because the camping equipment is already pretty expensive. Time will tell if anyone will be interested in purchasing Rivian's vans and turning them into electric campers.
We’re incredibly excited to launch our Rivian Commercial Van to fleet customers across the country. Around a quarter of CO2 emitted in the transportation sector in the US comes from commercial vans — businesses can help cut emissions and make a difference: https://t.co/w5Tb6zSBaD pic.twitter.com/sxUMPJPBeF
— Rivian (@Rivian) November 7, 2023
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