Over the last few years, electric vehicle start-ups have become something of a trend, but not always with success. Sure, Tesla knocked it out of the park early on, but there are far more stories of promise that ended in failure. Just ask Henrik Fisker, who tried and failed twice.

✕ Remove Ads

Rivian

Rivian Automotive, Inc. is an American electric vehicle manufacturer launched in 2009 by R.J. Scaringe as Mainstream Motors before being renamed Avera Automotive and, later, Rivian in 2011. Despite initial plans to launch a sports car as its first product, Rivian changed focus to cater to the growing demand for adventure vehicles, launching the R1T and R1S in 2021 and 2022, respectively. As of the beginning of 2024, Rivian has sold a total of 82,572 EVs, with plans to grow this figure rapidly by launching new products like the R2 and R3.

Rivian is on the list of EV start-ups trying to make a go of what has been an increasingly challenging market. Consumers aren't flocking to EVs as quickly as the industry expected and the possibility of disappearing government incentives makes buying electric a more expensive proposition. To that end, Rivian is working hard to provide more compelling choices in the market, and while that includes more physical products, it also means more digital ones, and those are not free to develop and distribute, as we learned when speaking with Rivian's software lead.

Close

✕ Remove Ads

An Expanding Vehicle Lineup

So far, we've seen the Rivian R1S SUV and the R1T Truck, both of which have received wide acclaim. They have their own unique look that is unmistakably Rivian and they're very tech forward with comprehensive infotainment systems that are a large part of their appeal. Especially for early adopters, this made Rivian special.

Related

Rivian R2 Debuts As More Affordable EV For $45,000

The Tesla Model Y has some serious competition.

Add CarBuzz to your Google News feed.

Follow On

Google News

The company is now expanding its lineup to include the R2 and R3, which are more affordable SUVs set to arrive in 2026. It's also continuing to improve its software, offering new features with the goal of providing a richer experience for its customers, but this recently came with a few unwelcome surprises.

We had the opportunity to hear from Rivian's Chief Software Officer, Wassym Bensaid, at an informal event at the Rivian showroom in Venice, California. His team is working to give new and future Rivian customers the features they want, but some of those features will come at a price.

✕ Remove Ads

The Good And Bad Of Over-The-Air Updates

It all has to do with the cost of data. The ability to update a vehicle's software over-the-air (OTA) is great for fixing any bugs and adding features, including a fun Halloween-themed update Rivian rolled out last month. Earlier this year, however, the OTA introduction of Connect+ took something away. The Spotify app, which had previously been free, suddenly required a subscription. This came as a surprise to some customers, but it was a part of the company's plan from the start.

"We have been really very clear since day one that connectivity was offered as a free trial for our customers and that it eventually would be paid."

- Bensaid Wassym, Chief Software Officer, Rivian

✕ Remove Ads

As surprising as it might have been for those who were early to purchase their Rivian, it was never a secret and it's a practice shared by many automakers. There are subscription services for everything from SiriusXM to Google Maps, many of which start off as a free trial before requiring a subscription.

The difference here is that it was a lot more than 30 days or a couple of weeks for Rivian's earliest adopters. People got comfortable with the free stuff being free. Suddenly having something like Spotify require a subscription came as a disappointment.

Close

✕ Remove Ads

The Cost Of Data

It all comes down to the cost of data. You pay a charge to use data on your smartphone. It's not free for car companies either, which is why there are an increasing number of features that require a subscription. Streaming services are a costly proposition. Despite always being clear that this was a part of the plan, Rivian wasn't oblivious to the fact that no one likes the idea of paying for yet another service. For that reason, they offered a solution.

"I think it's really important to highlight that we made the effort to add a feature so that owners can still tether their own hotspot even if they don't pay for Connect+."

"It's something that I personally wanted to add," Wassym said. This is a give-and-take where Rivian needs to find the balance between adding features and improving functionality while deciding what the cost of those improvements will be for its customers. "We want to be as fair as possible, but at some point, we also need to make money as a company," he said.

✕ Remove Ads

Rivian can't just give it away. A company needs to make money, or it ceases to exist. Subscription services are one way to make sure it stays out of the red and avoids the fate of the legions of failed EV startups. No one wants a seat at the table with the likes of Fisker.