Rivian prioritises autonomy over profit

Rivian founder and CEO RJ Scaringe said last week at TechCrunch Disrupt that the company is willing to delay profitability to develop autonomous vehicle software for its electric vehicles.

Autonomy opens new design possibilities

Scaringe said autonomy will allow Rivian to build radically different kinds of vehicles than the outdoorsy SUVs and trucks it currently makes, creating dramatically different experiences.

“It opens up all kinds of design opportunities. It can create dramatically different experiences.”

The promised design revolution never arrived

A decade ago, Mercedes-Benz, Toyota and others promised autonomy would produce new mobility form factors, including pod-like designs and rooms on wheels. These concepts never left the prototype phase.

Why the timing is different now

Real robotaxis now operate in multiple cities worldwide with software capable of safely operating on public roads at scale. Battery and motor components have become cheaper, and companies have improved manufacturing.

Rivian's autonomy roadmap

Rivian has shipped a driver assistance system allowing hands-off driving. By end of year, it promises point-to-point navigation without intervention under driver supervision, working toward full autonomy.

Robotaxi plans for the R2

Rivian is working toward full autonomy, which it plans to deploy in robotaxi versions of its R2 SUV that will be available on Uber's ride-hail app.

Most driving will stay personally owned

Scaringe said ninety-five percent of miles driven in the United States are in personally owned vehicles. Even with Level four autonomy, he expects most miles to remain in private ownership.

“95% of the miles driven in the United States, so this is trillions of miles, 95% of these miles are in things that we personally own.”

The shift may be modest

Scaringe said that figure may drop from ninety-five percent to ninety or eighty percent, but the vast majority of miles will likely stay in personally owned vehicles for societal and psychological reasons.

“It may go from 95% to 90%, it may go from 95% to 80%, but still the vast majority of the miles driven for a lot of societal and psychological reasons are likely to stay the same.”

The R4 is coming but details are secret

Scaringe said Rivian has made the R1, R2 and R3. The next vehicle will be called R4, but he declined to reveal what it looks like, saying only that it will be cool and great.

“The thing after R3 is going to be called R4, we just haven't shown what it looks like. It's going to be cool. It's going to be great.”

Rivian faces production challenges first

Before pursuing driverless vehicles, Rivian must scale production of the R2 SUV to reverse years of losses and become a major EV player. The company recently reworked its self-driving software approach.