BusinessTechnology

Amazon invests in Tesla’s rival company Rivian

Amazon Logo on a Samsung Phone

Use of excessive fossil fuels over centuries has led Earth towards a grim future where the environment is becoming more and more inhospitable for humans and other life forms alike. In such a scenario, it becomes an exigent demand of the present times that humans take actions to rectify their past mistakes.

Vehicles are among the top polluters in the world. It is crucial to find alternatives to fossil fuel powered vehicles to reduce pollution levels, especially in the cities. Cities are cramped up with people. Pollution in the cities is a major problem as a huge number of people are affected as compared to rural places.

Technological advancements have allowed companies such as Amazon to reach the top of the corporate ladder. The world’s largest online retailer is also the highest valued company in the world with a valuation of more than $700 billion. Amazon is also known for its innovations and thoughtful acquisitions of other tech companies.

The tech giant has shown interest in various new developments in the tech industry and in various categories. However, recently it has shown particular interest in the electric automotive sector. Rivian is one of the upcoming electric vehicle startups in the US. They primarily produce electric pickup trucks.

Tesla is the world’s largest electric vehicle manufacturer. The company is led by a billionaire and visionary Elon Musk. It has ventured into various innovative and futuristic sectors such as space travel, rocket and satellite technology. However, the company has not been able to stabilise their e-vehicles business very well. Their profits and productions are varying over the period. In such a scenario, Rivian looks forward to concentrating on one product and capture a good share of the market.

Amazon, having a huge kitty has invested $700 million in Rivian taking its valuation to around $3-4 billion. It will give a major boost to the startup not just financially but also perception-wise and marketing wise. Rivian can benefit from Amazon’s popularity. Other US giants such as General Motors have also invested in Rivian. People are interested in the major tech giants such as Amazon, Alibaba, Apple, Tesla, Google and Microsoft. Therefore, they are also interested in these companies’ major investments and acquisitions.

Tesla CEO Elon Musk has commented in the past about their interest in the pickup truck market. However, they will only start thinking about that after the release of the Tesla model Y scheduled to be launched in 2020. Until then, Rivian will get a good head start with huge investments from technology majors.

Amazon is also smartly placing their products through their collaborations with the automobile companies. According to Mercedes Benz, Amazon is their largest client for the Sprinter vans. Amazon uses it for delivery purposes. Amazon has been installing its AI voice assistant Alexa in cars from companies such as BMW, Mercedes Benz, Ford and Toyota.

Alexa will also be a part of the Rivian trucks. Rivian is ready to collaborate with other companies for the development of advanced self-driving technology. It does not want to invest in its development by themselves, as they are not sure of their capabilities. It is better for them to collaborate with a brand that is competent with technology and produce and better product. AI voice assistants will be a crucial development in the direction of smart cars and connected vehicles ecosystem.

Amazon will be boosting its delivery feet with Rivian and in return, Rivian will be found on the technology map now. New startups need the help of the big players to succeed and this relationship looks promising in the future for both Amazon and Rivian.

-Soumya De

Comment here