AmazonRivian Automotive’s huge bet paid off when their electric car start-up had a spectacular debut on the public market.

Rivian raisedNearly $12 billion was invested in this mammoth offering, and it landed an impressive valuation of over $110 billion. This is more than any auto company. GMAnd Ford. Amazon received a large windfall from Rivian, having invested over $1.3 billion. Amazon now owns a 20% share of the company, which is worth over $21 billion.

Amazon was very pleased with Rivian’s IPO. It’s also key to one of the company’s most challenging mandates — to cut the amount of damage it does to the environment.

Amazon has been long criticized because it doesn’t move fast enough to minimize its environmental impact. In 2019, more than 1000 Amazon workers protested against the company’s inaction on climate change. submitting a shareholder proposalSigned by thousands of employees

2019: Jeff Bezos, Amazon’s founder and Executive Chairman stood on stageHe presented a comprehensive plan for transforming the company’s climate policies, and promised that Amazon would become carbon neutral by 2040. He declared that Amazon was becoming carbon neutral. was placing an orderRivian, 100,000 electric vans to last-mile delivery by 2030 Amazon plans to get 10,000 more on the roads by next year.

They are in stark contradiction to Amazon’s present reality. Amazon is the largest national online retailer. delivers more than 10 billionAn extensive network of fuel-guzzling ships, planes, vans and trucks transports millions of items annually around the world. The company has brought in more of its transport operations and has set up warehouses throughout the country in an attempt to accelerate deliveries. In some cases, delivery can be done within minutes.

Bezos previously stated that one- or two-day delivery can reduce emissions and decrease dependence on airplanes. Furthermore, locating warehouses near customers can mean shorter journeys for delivery vans when picking up packages. The Washington Post.

According to The United States Climate Change Initiative, 29% of America’s greenhouse gas emissions are still caused by transportation. Environmental Protection Agency.

As the business of the online giant got an epidemic-fueled boost, its carbon emissions also increased last year. which climbed 19%. In 2020, emissions per unit of merchandise decreased by 16%

Amazon will need to continue investing in and implementing innovative transportation technology technologies to move forward with its efforts to decarbonize. This is one way that Amazon has already done this. the $2 billion Climate Pledge FundAmazon invests in technology start-ups that will help it achieve its climate goals with the money from this fund.

Amazon’s acquisition of Zoox last yearAnother bet on electrification is the $1 billion part. Zoox built an all electric, autonomous vehicle for ride-hailing.

It has tested prototypes of the self-driving car in San Francisco, Foster City, California and Las Vegas, and now in Seattle. Although Zoox and Amazon continue to be separate businesses, the company also has a Seattle office.

The future could see both Zoox and Rivian vans integrate into Amazon’s extensive logistics network. It will reduce the cost of transporting goods and make it more eco-friendly.

However, Zoox does not need to run on electricity, according to Bilal Zuberi (a Lux Capital partner).

Zuberi explained that they can have either an electric or combustible vehicle. Amazon had as its primary goal in Rivian investing, Zuberi said. He added that he wanted to “be ahead and be a part” of the next wave of electric cars.

The environmental effects of autonomous vehicles are not yet clear. The technology’s proponents claim that self-driving vehicles will decrease traffic congestion, increase ride-sharing and reduce car ownership. Other critics have suggested that self-driving cars may lead to increased use of automobiles, which could cause more pollution.

Amazon made some other big investments in autonomous cars. Amazon is the company in 2019Part of $530 Million funding round, Aurora was part-funded by the company.

Amazon was launched in the earlier part of this year. placed an orderAutonomous driving system from Plus self-driving trucks startup. Plus was also given an option to acquire a 20% interest in Plus. It has also testedEmbark makes self-driving trucks that can haul goods.

“[Amazon]Asadhussain, senior mobility analyst for financial data company Pitchbook, said that they are seeing the beginning of a multi-decade transition in mobility. “Autonomous and electric will be huge parts of that transformation.” So I believe Amazon is kind of betting on innovation and making sure that they get exposure in areas where it might help their core business.

Amazon’s Scout delivery robot is also a six-wheeled, electric vehicle. Amazon is adding micro-mobility options to its delivery services in urbanized areas like electric cargo delivery bikes.

Amazon isn’t just interested in decarbonization of its ground transport system.

Amazon’s Climate Pledge Fund made a $268 million investment in Beta Technologies (which is currently building an electric plane) as part of its $368 million round. Amazon also supports start-ups in developing countries. hydrogen-powered planesAnd net-zero carbon diesel and jet fuels.

Amazon has an extensive ocean shipping service. last month agreedBy 2040, ocean freight will be powered by zero-carbon fuels