This past Thursday, Amazon (NASDAQ: AMZN) announced that it was going to roll out electric delivery vans designed by Rivian Automotive (NASDAQ: RIVN) nationwide. This plan is part of Amazon's initiative to reach net-zero carbon emissions by the year 2040.
The company bought 100,000 electric vehicles from Rivian Automotive in order to achieve this goal, beginning in 2019.
According to Amazon, these new electric vehicles have 360-degree visibility with exterior cameras that are connected to features such as sensor detection, traffic-assist technology, cruise control, and emergency braking. In terms of putting climate change into effect, Amazon was the very first signer of The Climate Pledge, which specifically expressed that it would like to have net-zero carbon emissions by the year 2040.
"Fighting the effects of climate change requires constant innovation and action, and Amazon is partnering with companies who share our passion for inventing new ways to minimize our impact on the environment. Rivian has been an excellent partner in that mission, and we're excited to see our first custom electric delivery vehicles on the road," commented CEO Andy Jassy.
Since 2021, Amazon has been making deliveries with Rivian vehicles. It has delivered 430,000 items since 2021 and has reached a point of around 90,000 miles. The testing of the electric vehicles has enabled Rivian to achieve vehicle performance enhancement, increased safety in spite of dangerous and varying climate conditions, and improved system functionality.
In terms of Amazon's current investments, it has implemented thousands of charging stations at delivery stations throughout North America. The company plans to keep investing in infrastructures that will hopefully build a more reliable delivery fleet. In order to establish itself more in terms of electric vehicles, Amazon has consulted with automakers other than Rivian in order to make its fleet more electric.
"Today represents an important step, not just for Amazon and Rivian as partners, but also for transportation and the environment," said RJ Scaringe, CEO of Rivian. "In 2019, Rivian and Amazon committed to fast-tracking a new type of delivery vehicle that would result in a significant reduction of carbon emissions. Thanks to our teams' dedication, hard work and collaboration, and a shared commitment to make the world a better place for our kids' kids, that vision is now being realized. To say this is an exciting moment is an understatement-we're thrilled to see this partnership has kickstarted decarbonization projects across the logistics delivery industry."