Rivian Opens Orders for Commercial Vans, Targeting Lucrative EV Market
Rivian (RIVN) has expanded its reach by opening orders for its commercial vans beyond its previous exclusive partnership with Amazon (AMZN). This move positions Rivian to capitalize on the robust commercial van market, estimated to reach $210.3 billion by 2034.
Expanding Rivian's Commercial EV Market
Rivian's commercial vans, available in two sizes (500 and 700), are based on the same platform as the electric delivery vans it produces for Amazon. Initially, Rivian had an exclusive arrangement to supply Amazon with 100,000 vans, but Amazon currently utilizes only 20,000. Following the conclusion of its exclusivity period, Rivian has been testing its vans with major fleet operators and is now ready to offer them to other businesses.
Growth Potential in Commercial Van Industry
The commercial van market is dominated by Mercedes Sprinter and Ford Transit vans, both of which offer electric versions. Ford's E-Transit sales surged 64% in the US in 2024, while Mercedes recently launched its eSprinter in the US.
Electric commercial vans are gaining popularity as businesses recognize the cost-effectiveness of using EVs for shorter journeys and local deliveries. Research firm Global Market Insights projects the electrified commercial van segment to reach $50 billion by 2034.
Leveraging E-commerce Growth for Last-Mile Delivery
The growth of e-commerce giants such as Amazon and Walmart+ has driven significant demand for logistics and last-mile fulfillment services. According to GMI, the global e-commerce delivery market was valued at $426.2 billion in 2024 and is expected to reach $1.58 trillion by 2034. Rivian, Ford, and Mercedes view this market as a key opportunity for their commercial van offerings.
Rivian's Upcoming Earnings Update
Rivian will provide an update on its commercial unit and other key business areas in its upcoming fourth-quarter earnings report, scheduled for Thursday, February 20. Wall Street will be closely monitoring Rivian's progress in the commercial van segment and its overall production capacity.