Rivian (Rivn) announced on Monday that it will begin ordering Rivian Commercial Van beyond its first launch partner, creating a lucrative business for purely play EV makers.
Rivian’s commercial van operates on the same platform as the current electric distribution van produced by Rivian for Amazon (AMZN). Libian originally had an exclusive arrangement to produce 100,000 vans for retail giants, but Amazon currently only uses 20,000 vans.
Libian has been testing commercial vans with large fleet operators, including AT&T, after the exclusivity period on Amazon, and is currently ready to use the fleet to open orders to other companies. He said there was.
Libian shares rose more than 3% in noon trading on Monday.
The Libian Commercial Van comes in two sizes, 500 and 700, with the smaller van offering more payloads (2,663 pounds vs. 2,258), but with less cargo space (487 cubic feet vs. 652). The two vans start at $79,900 and $83,900 respectively.
“As Amazon’s relationship has changed dramatically, it’s a big step in the right direction for Libian. This will expand the opportunities for Libian on the commercial EV front,” Wedbush analyst Dan Ives told Yahoo Finance I did. “Turn smartly at the right time.”
The commercial delivery van business is a major industry dominated by Mercedes Sprinter vans and Ford Transit vans. Both companies offer electric versions of delivery vans, with more customers using electricity for shorter trips and local delivery.
Ford said that electronic transport sales in the US jumped from 64% to 12,610 units in 2024, helping to grow Ford Pro’s commercial units. Last year, Ford sold around 150,000 commercial vans in the United States.
Mercedes just started selling Esprinter vans in the US in the fourth quarter, with sales totaling only 828 units. However, the company sold a total of 49,500 commercial vans in the US last year.
The commercial van business is expected to reach a combined annual growth rate of 6.7% (CAGR) of 6.7% over the next 10 years, from $109.4 billion in 2024 to $210.3 billion by 2034, according to research firm Global Market Insights. Masu.
GMI predicts that the electrified commercial van business will make up its business of around $50 billion by 2034.
The growing e-commerce logistics and last-mile fulfillment business will be huge as Amazon, Alibaba, Walmart+ and more can prove to be growing. GMI’s total global e-commerce delivery market in 2024 was worth $426.2 billion, reaching around $1.58 trillion since it grew at a 14% CAGR through 2034.
Libian, Ford, Mercedes and others believe this market is important for van products, with electricity being a “duty cycle” that matches the last mile delivery well.
The story continues
