What It’s Like To Deliver For Amazon In New Rivian Vans

CNBC
14 Jan 202316:20

Summary

TLDRAmazon is enhancing its delivery operations with over 1,000 electric Rivian vans, aiming to improve driver experience with features like heated steering wheels and 360-degree cameras. Despite early range concerns, the vans, part of Amazon's commitment to net-zero carbon emissions by 2040, are now in over 100 cities. Amazon has addressed past criticisms with safety tech, real-time driver feedback, and detailed route optimization, although challenges like dog attacks and carjackings remain. The company also faces supply chain issues with Rivian and is diversifying its fleet with other electric models.

Takeaways

  • 🚚 Amazon has over 275,000 drivers delivering approximately 10 million packages daily worldwide.
  • 🔋 In 2019, Amazon committed to purchasing 100,000 electric vans from Rivian, aiming for net-zero carbon emissions by 2040.
  • 🛣️ Amazon started using Rivian vans in July and now operates them in over 100 cities, addressing concerns about range by adding thousands of charging stations.
  • 🚗 Rivian has faced production challenges, impacting Amazon's investment, but Amazon still expects 100,000 Rivian vans on the road by 2030.
  • 🚗 The majority of Amazon's delivery fleet still consists of 110,000 gas-powered vehicles, mainly Ford Transits, Mercedes Sprinters, and Ram ProMasters.
  • 🔑 Amazon uses third-party contractors, known as Delivery Service Partners (DSPs), to deliver packages, which started in 2018 to reduce reliance on UPS and the U.S. Postal Service.
  • 🛠️ Amazon has introduced various safety and efficiency features in the Rivian vans, including cameras, sensors, and lane-assist technology, resulting in a significant reduction in accidents.
  • 🌐 Amazon has been enhancing its routing algorithms by incorporating detailed mapping data and feedback from drivers to improve delivery efficiency.
  • 📱 Amazon is developing an in-app feature for drivers to report pet information at delivery locations, enhancing safety and communication.
  • 💰 While pay rates for Amazon drivers are determined by individual DSPs, Amazon ensures competitive rates through regular audits.

Q & A

  • How many packages do Amazon drivers deliver daily worldwide?

    -Amazon drivers deliver 10 million packages a day around the world.

  • What was the issue with the old routing software that drivers faced?

    -Drivers faced issues with the old routing software such as unrealistic workloads, peeing in bottles, dog bites, and error-prone routing.

  • How many electric Rivian vans has Amazon put on the road?

    -Amazon has put over 1,000 electric Rivian vans on the road.

  • What is Amazon's goal regarding carbon emissions?

    -Amazon has an ambitious promise of achieving net-zero carbon emissions by 2040.

  • In which cities are the Rivian vans being used for Amazon deliveries?

    -Rivian vans are being used in over 100 cities including Austin, Baltimore, Chicago, Las Vegas, Nashville, and New York.

  • What are some of the new features in the Rivian vans that drivers appreciate?

    -Drivers appreciate features like the heated steering wheel, 360 view, big light bar around the back, and increased cargo space.

  • What challenges has Rivian faced recently that affected Amazon's delivery van plans?

    -Rivian has faced challenges like cutting back on 2022 production due to supply chain and assembly line issues, leading to a drop in stock value and a recorded $3.9 billion loss on Amazon's Rivian holdings in Q2 of the previous year.

  • How does Amazon's delivery service partner (DSP) model work?

    -DSPs are third-party contractors that employ drivers and lease custom vehicles from Amazon. They are responsible for the liabilities of the road and the costs of hiring, benefits, and overtime pay. Amazon covers fuel and installs charging stations for electric vehicles.

  • What safety features have been added to the new Rivian vans?

    -The new Rivian vans have safety features like cameras and sensors for warnings and lane-assist technology, automatic braking, 360 bird's eye view, automatic parking brake, rollaway detection, and driver-facing cameras inside.

  • How has Amazon addressed the issue of drivers urinating in bottles due to demanding schedules?

    -Amazon has not directly addressed this issue in the script, but it has made changes to improve the driver experience, such as adding more efficient routing and safety features to the new vans.

  • What is Amazon's plan for the rollout of Rivian vans by 2030?

    -Amazon expects to have 100,000 Rivian vans on the road by 2030, which is a push back from the original pledge to have them all on the road by 2024.

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Related Tags
Amazon RivianElectric VansDelivery InnovationDriver ExperienceSustainabilityDelivery EfficiencySafety TechnologyEV ChargingSupply ChainDelivery Drivers