This deal marks the end of an exclusivity clause that Amazon had on Rivian Delivery Vans
Early in 2024, AT&T is set to begin taking delivery of Rivian fleet vehicles in a new pilot program agreed upon by both brands. For AT&T, this signifies a reduction in transport emissions and potentially lower maintenance costs. For Rivian, it’s a clear indication that its exclusivity deal with Amazon is over, and business in the fleet space could be on the verge of a significant upturn.
While this new agreement doesn’t specify the exact number of vehicles, it does indicate a substantial order. AT&T states that it plans to use both Rivian’s Commercial Van and its R1 vehicles, including both the R1S and R1T. The company believes that this move will help it achieve carbon neutrality by 2035.
“We’re excited to purchase Rivian EVs for our fleet. This pilot is another important step in our ongoing efforts toward sustainability, reducing our carbon footprint, and embracing a cleaner future for our operations. With advanced connectivity and a vision for a sustainable future, Rivian is setting the standard for the evolving demands of modern transportation,” said Hardmon Williams, SVP of AT&T Connected Solutions.
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Read: Rivian Opens Commercial Van Orders And Lifts 2023 Production Forecast To 54,000 Units
Rivian’s VP of Strategy and Fleet, Dagan Mishoulam, stated:
“We couldn’t be happier to collaborate with AT&T as we work together to reduce emissions and protect our environment. Approximately a quarter of the CO2 emissions in the US transportation sector originate from commercial vans, so it’s imperative that we take action as soon as possible to help mitigate these emissions. Our category-defining vehicles offer some of the most advanced technology in the sector and are continually improved through over-the-air updates. We’re very much looking forward to expanding our relationship with AT&T to help them achieve their climate goals.”
While this deal ends what was an exclusivity clause between Rivian and Amazon, AT&T was quick to point out that it still remains the exclusive connectivity partner for Rivian. It’s that connectivity that allows Rivian to update its vehicles over the air. However, the automaker appears to be in a prime position to take on new fleet customers. Should that happen, it could signal a wave of new orders and demand.
That would certainly be additional good news for Rivian as it enters a very important new year. During 2024 it intends to preview its new R2 platform and is aiming to offer it on sale for $40-$60k beginning in 2025 with deliveries to begin the following year. Increasing production between now and then will be a huge part of giving Rivian more flexibility down the line.
