Rivian announces the end to its exclusive deal with Amazon

Electric vehicle manufacturer Rivian says it will no longer have an exclusive contract with Amazon and will instead allow other businesses to buy its delivery vans.

Electric vehicle manufacturer Rivian announced on Tuesday that it will no longer have an exclusive contract with Amazon and will allow other businesses to buy its fleet of delivery vans.

The automobile manufacturer located in Irvine, California stated that the move gives other businesses additional opportunities to electrify their delivery fleets and lower carbon emissions in a statement released in conjunction with its third-quarter earnings.

2019 saw the signing of an agreement with Amazon that forbade Rivian from selling commercial vans to other clients and gave Amazon exclusive access to the vehicles for four years after it started receiving the EVs.

Rivian restated its commitment to assist Amazon in putting 100,000 electric cars on the road by the year 2030. According to Amazon, over 10,000 have been released thus far.

Amazon benefits from increased sales of Rivian vans, as it holds a 17% share of the electric vehicle manufacturer.

Vice President of Transportation at Amazon, Udit Madan, says that this has always been part of the company's plan with Rivian since having more electric delivery trucks on the road is beneficial for both their communities and the environment, they have always stated that they want other people to eventually profit from their technology.

During trading hours, shares of Rivian and Amazon both experienced a modest increase in value.