Amazon will Acquire Rivian and Upend the Trucking Industry
Bezos understands what Rivian can become for EVs at the intersection of Autonomous Driving
The chances of Rivian being acquired in the next five years are probably around 80%. If they are, it’s 75% likely it will be by Amazon.
So why is Rivian important? Rivian is not just devouring staff from Ford, Apple, Tesla, Faraday Future and more, they will target electric and autonomous driving trucks.
This is because Amazon has hugely invested in them, and this is what Amazon logistics needs to happen. With a staff of 750 and counting, the EV startup has doubled in size since spring 2018. How can this be?
Amazon led a $700 million round of funding in Rivian, a Michigan-based electric vehicle startup, in February 2019. This changed everything.
With Tesla falling upon hard times, Rivian could scale, much as Lyft now competes with Uber.
But what is Rivian in the short-term? Michigan-based electric vehicle startup Rivian is gathering force, with a plan to launch onto the electric car market with a production run that could see the company make as many as 40,000 electric trucks and SUVs in its first year.
Make no mistake, Rivan to Tesla is an Electric truck start-up and potential player in the future of self-driving trucks.
What happens when you combine a thirst for adventure with automotive tech and AI? Amazon’s MARS 2019 gave us some hints about what Rivian will become. Many of you have never heard of Rivian before. According to the Economic Times:
- Rivian has designed a skateboard-like chassis that it plans to sell to other carmakers.
- Early backing from Saudi and Japanese investors provided the runway for Rivian to develop its EV designs.
- Rivian trucks and SUVs can operate in 3 feet of standing water!
- The R1S will directly challenge Tesla’s SUV, the Model X.
- Founder RJ Scaringe is promising only about 20,000 to 40,000 vehicles in 2021, the first full year of production.
It’s what we don’t know that’s interesting about Rivian. It’s that sense of potential with Amazon’s backing. Bezos is the world’s richest man and over the last 25 years has built an empire that nets him $17 million a day.
Jeff Bezos sought out a 36-year-old entrepreneur named R.J. Scaringe and spent the better part of a day in Plymouth, Michigan, at Rivian, the company Scaringe founded. That’s just the beginning of this story.
When Amazon acquires both Rivian and Aurora and merges them and leap-frogs Tesla among others, don’t say I didn’t tell you so.
Not a well kept secret here is that Amazon has also invested heavily into Aurora, a self-driving startup led by ex-Tesla and ex-Google executives.
At an information session hosted by the company as part of the re:MARS event, we heard Rivian’s self-driving plans could possibly cross over with Aurora’s autonomy developments as both companies share an Amazon business linkage. When Amazon drives you as a startup, it can lead to big things. Amazon is fairly good at anticipating the future.
Rivian will Cross the River from EVs to AVs
Headed by MIT mechanical engineering graduate Scaringe, Rivian has its eye on the potentially extremely lucrative SUV and pickup market. Rivian is that company that might end up best combining electric vehicles and autonomous driving.
I’m calling it.
Rivian will do it cheap, fast and in style and Americans will love this brand.
It will then be taking on bigger trucking logistics battles for Amazon, and win there as well. This will change the future of trucking forever in America, circa 2025 to 2035.
Rivian will become a leader in the shift to sustainable mobility, autonomous trucking and autonomous driving globally. They won’t need the sweet talk of an Elon Musk for Tesla, a company that loses more money than it has fans. Bezos doesn’t need to pander on social media, he’s a business visionary.
If Tesla and Waymo alumni already made a $2.5 billion valuation for Aurora, how much could Rivian soon be worth? It’s hard to quantify the ceiling for this company in 2019. It’s all about the talent and the backing at this point, and how well will EVs even do in the U.S., a somewhat backwards country when it comes to green technologies.
Rivian was in stealth mode until recently. It’s one of the key startups I’m watching in this space. By the end of 2020, Rivian intends to begin producing premium electric vehicles with a greater range than anything on the road today. By 2024, it should be acquired by Amazon, likely along with Aurora.
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