Electric vehicle maker Rivian $RIVN said Tuesday that it will allow other companies to purchase its fleet of delivery vans, ending an exclusive agreement with Amazon $AMZN.
In an announcement made alongside its third quarter earnings, the Irvine, California-based car maker said the decision provides other companies more opportunity to electrify their delivery fleets and reduce carbon emissions.
The agreement with Amazon, made in 2019, included provisions that barred Rivian from selling commercial vans to other customers and provided Amazon exclusive access to the vans for four years from when it began receiving the EVs.
Rivian reiterated its pledge to help Amazon put 100,000 electric vehicles on the road by 2030. Amazon says it's rolled out more than 10,000 so far.
More sales of Rivian vans also helps Amazon, which owns a 17% stake in the electric car company.
“This has been part of our plan with Rivian from the beginning – we’ve always said that we want others to benefit from their technology in the long run because having more electric delivery vehicles on the road is good for our communities and our planet," said Udit Madan, vice president of transportation at Amazon, in a statement.
Shares of both Rivian and Amazon stock rose slightly in after-hours trading.