Electric truck maker Rivian is reportedly developing an electric bike in an effort of the company after the CEO revealed his interest in the micro-mobility market.
NEW YORK, NEW YORK - NOVEMBER 10: A Rivian electric truck ad is seen displayed on a screen in Times Square on November 10, 2021 in New York City. Rivian, an electric truck maker backed by Amazon and Ford, made its debut at Nasdaq going public with an IPO valued at close to $70 billion with 153,000,000 shares of Class A common stock at a public offering price of $78.00 per share. (Photo by Michael M. Santiago/Getty Images)Michael M. Santiago/Getty Images
(Photo : Michael M. Santiago/Getty Images) NEW YORK, NEW YORK - NOVEMBER 10: A Rivian electric truck ad is seen displayed on a screen in Times Square on November 10, 2021 in New York City. Rivian, an electric truck maker backed by Amazon and Ford, made its debut at Nasdaq going public with an IPO valued at close to $70 billion with 153,000,000 shares of Class A common stock at a public offering price of $78.00 per share.
Rivian's Electric Bicycle
In an internal staff meeting, Chief Executive Officer RJ Scaringe stated that Rivian Automotive is developing an electric bike as an expansion for its product lineup. He said that a small group of engineers is actively working on it.
As per Engadget's report, the company did not confirm the news, and it was not immediately clear if the company was referring to a battery-electric motorcycle or bicycle. This news comes after Scaringe hinted at a conference about the possibility of producing an e-bike, especially since Rivian has been aiming to move into micro-mobility.
For its design, Rivian hired several high-level designers for the vehicle from major brands like Specialized in an effort to bulk up its design team for its electric bike ahead of the inevitable project. The CEO added that this is not just a developing plan as the company already developing the first model.
Because of their lower production cost and much lower purchase prices, electric bikes usually outsell electric cars and other vehicles in the markets by a wide margin. A report from Electrek reveals that sales of e-bikes are growing 16 times faster than general cycling.
Several automakers are joining the market because of this, which makes sense for Rivian to develop its first electric bicycle to its product lineup. The company joins Porsche in the market, which also expanded its offerings just recently.
Reducing Costs
Rivian has been struggling to cut costs across the company. Bloomberg reported that employees were told the company would be cutting 6% of its workforce, which makes them conducting its second significant workforce reduction in the last 12 months.
Scaringe explained to the staff at the same meeting that the cuts will be done as the company will refocus on ramping production of its electric vehicles and longer-term profitability. Developing an e-bike makes sense as it is easy to develop and produce financially.
Aside from this, e-bikes also have lower regulatory hurdles that reduce costs and decrease development periods. By having this process, Rivian could reach the market faster with lower overhead and higher volume products to increase earnings.
This initiative is a partnership with the Maasai Wilderness Conservation Trust. The four delivered vehicles are currently used in the Chyulu hills in Kenya for conservation work like zero tailpipe-emissions transport for firefighters and crucial on-and-off-rad rangers' operations.
