Amazon unveiled an ambitious plan to tackle climate change and committed to meet the goals of the Paris Agreement 10 years early.
What Happened?
As part of this plan, Amazon will purchase 100,000 electric delivery vehicles from Rivian Automotive in a push to make the company’s fleet run entirely on renewable energy.
Adding that it would use the fleet of electric vans to start delivering packages to customers in 2021.
Why This Matters
The forthcoming Amazon armada of delivery trucks will likely undermine the internet retailer’s reliance on existing delivery services like UPS, Bank of America says.
“We note Amazon’s 100k trucks would be comparable to UPS’ reported 123k package cars & vans,” wrote Bank of America analyst Justin Post. “We think this announcement, along with aircraft leases and shipping facility investment … strongly signal Amazon’s intentions to build out shipping capabilities similar to leading shipping companies.”
Rivian, on its part, says the order will not affect the rollout of its other electric vehicles.
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