Amazon Goes Electric -- February 15, 2019

Lost in all the Amazon-NYC news yesterday was this story over at Bloomberg:

Amazon.com Inc. led a $700 million equity investment in Rivian Automotive LLC, the electric pickup and SUV maker that debuted its first vehicle concepts late last year.

The backing from Amazon will bolster Michigan-based Rivian’s plans to bring an electric truck to market late next year.

Rivian remains in talks with General Motors Co. about the largest U.S. automaker making an investment or collaborating another way, people familiar with the matter said.

The support of the world’s leading online retailer signals potential for a partnership on delivery vehicles down the road. Chief Executive Officer R.J. Scaringe said in his first interview since reports of Rivian’s talks with Amazon and GM surfaced earlier this week that he was seeking companies that could help the electric-vehicle maker grow.

A year ago I never saw an Amazon van delivering packages in the DFW area (or anywhere for that matter). I saw UPS, USPS, FedEx, and worst of all, independent contractors who were generally horrible in making deliveries. 

Now a year later, I see Amazon vans everywhere in this north Texas metroplex.

I would never bet against Amazon when there is a report that the company is moving into a new niche. The company seems to start small and then literally within a year become a real force with which to reckon. 

$700 million? A drop in the bucket for Amazon.

But I think it's a game-changer. 

Electric rates are dirt-cheap overnight in the DFW area (and I assume that's true everywhere). One can sign up for a plan in our area giving one "free" electricity on weekends and every weeknight after 9:00 p.m. until 6:00 a.m.  

I would assume a lot of time (by Amazon's standards) is wasted refueling ICE vans once or twice during the day while making deliveries and paying whatever the local service station charges. 

My hunch is that Amazon will get large-volume discounts on electricity, charge their vehicles overnight, and run emission-free the next day. And large vehicles can probably accommodate a large battery pack. 

In comparison, those huge UPS brown trucks look incredibly inconvenient and must get lousy mileage. And it goes without saying it appears the USPS blue-and-white contraptions haven't been updated since the 50s. The 1950s.