Amazon Needs Electric Vehicles, Too

Amazon Needs Electric Vehicles, Too

When you think of electric vehicles, you might think first of a Tesla. But a more financially rewarding use of the technology that is upending the automotive industry could be the vans that deliver your online shopping.

Until recently, such unassuming vehicles occupied an easily ignored niche within the multitrillion-dollar automotive industry. That is changing fast. This week, privately held Rivian Automotive raised $2.65 billion at a $27.6 billion valuation to fund its rollout of EVs, including a delivery vehicle for e-commerce giant Amazon.com , which holds a stake in the startup. Last week, General Motors said it was creating a new company, BrightDrop, to focus on selling EVs to the delivery market. It expects to ship 500 units to its launch partner, FedEx , later this year.

Startups are rushing into the space, in some cases armed with cheap capital from an ebullient stock market. California startup Canoo went public in December with a plan to focus squarely on so-called last-mile delivery—getting goods to your door.