Exit from New York City rideshare market announced; emphasis shifting towards electric vehicle charging infrastructure
In a significant shift, Revel, once a pioneer in New York City's all-electric rideshare market, is ceasing its rideshare operations as of August 11th. The company, which started as a small Bushwick storefront with 68 rental mopeds in 2018, has now set its sights on building electric vehicle (EV) charging infrastructure in major cities.
Revel was the first all-electric rideshare company, offering a fleet that included Tesla Model Y vehicles. However, its 500-vehicle fleet and roughly 100,000 rides per month were small compared to the millions of trips per month handled by giants like Uber and Lyft.
The rideshare market, with its high competition, asset-heavy nature, and low margins, proved to be financially unsustainable for Revel. The company's rideshare business was reportedly "deeply unprofitable" and faced investor impatience due to continuous cash burn, operational challenges, and difficulties expanding its fleet and rental services.
Despite these challenges, Revel has found success in growing its EV charging infrastructure. Currently, the company operates 100 chargers across five stations in New York City, plus another in San Francisco, with plans to reach 2,000 charging stalls by 2030 in multiple markets.
The rise in EV adoption and EV fleets of Uber and Lyft drivers has increased demand for fast chargers, making EV charging infrastructure a strategic growth area for Revel. The company aims to be at the forefront of this growing need, contributing to the continued growth of electric vehicles in major cities.
Revel's co-founder and CEO, Frank Reig, stated that the decision to end the rideshare service is to keep the EV transition moving forward. He believes that by focusing on building EV charging infrastructure, Revel can better support urban electrification by expanding fast-charging networks essential for sustained EV adoption.
The company's shift also follows previous pivots such as shutting down its moped service and ending an EV rental partnership with Hertz, reflecting a strategic refocus on scalable and sustainable business segments. There are also rumors that Revel is seeking a buyer for its over 100 NYS TLC license plates, with more information available on the NYC Taxi & Limousine Commission website.
Revel provided just under 600,000 rides a month in San Francisco, where it expanded its operations. However, the company closed its moped rental operations in 2023 due to a decline in rentals and safety issues.
As Revel bids farewell to its rideshare operations, it looks towards a future where it can play a significant role in accelerating the EV transition and positioning itself for long-term growth in the EV charging infrastructure sector.
[1] The Verge
[2] TechCrunch
[3] CNBC
[4] Business Insider
[5] Fast Company
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