Electric mobility startup Revel is officially pulling the plug on its shared moped service in New York City and San Francisco, TechCrunch reports.
This decision comes as CEO and co-founder Frank Reig acknowledged that "the service has been strained, and ridership isn't what it used to be."
Revel Shifts Away From Moped
Revel, which began as a modest storefront operation in Brooklyn with just 68 electric mopeds in 2018, grew exponentially to become a dominant player in the micro-mobility industry.
TechCrunch tells us that by 2021, they boasted over 3,000 e-mopeds in New York City, as well as an additional 3,000 in other major urban centers, including Washington, D.C., Miami, and San Francisco.
The moped-sharing service was part of Revel's early identity, but its popularity began to wane. It is a fact that became evident as the company expanded into other segments of the electric mobility market.
In addition to their electric mopeds, Revel diversified into electric ride-hailing and EV charging infrastructure. They recently launched their third "Superhub" in Queens, following the successful introduction of one in Brooklyn earlier this year. Moreover, the company plans to construct a Bay Area charging station soon.
A Closer Look
The cessation of the moped service marks a bittersweet end of an era for Revel. While it initially gained recognition for its iconic blue electric mopeds, the company's shift towards electric ride-hailing and EV charging infrastructure signals a forward-thinking approach.
In particular, Revel's electric ride-hail service now boasts a fleet of 500 electric vehicles, comprised of Tesla Model Ys and 3s, as well as Kia Niros.
Reig, in his memo to staff, indicated that Revel's moped-sharing business had experienced a sharp decline in ridership, plummeting approximately 30% year-over-year in both San Francisco and New York. The company was no longer sustainable in these conditions, leading to the decision to shutter it.
What's Next?
The last day of Revel's moped service will be November 18, 2023 (via company emails). In a proactive move, the company plans to send the decommissioned mopeds to recycling facilities in New York and the Bay Area over the next two weeks.
While this shift in focus may lead to layoffs for around 67 employees in moped operations, Revel has stated that they will be eligible for severance benefits.
Revel's evolution from a niche moped-sharing service to a comprehensive electric mobility provider signifies the dynamic nature of the industry. By concentrating on their electric ride-hailing service and expanding their EV charging infrastructure, Revel appears poised to stay ahead in an increasingly competitive field.
This transition aligns with broader efforts to provide sustainable and convenient transportation options to urban residents, and it will be fascinating to see how Revel's redefined business strategy plays out in the coming months.
Stay posted here at Tech Times.
