Revel, an electric mobility startup, has made the decision to discontinue its shared moped service in New York City and San Francisco, according to a report by TechCrunch. The CEO and co-founder of Revel, Frank Reig, acknowledged that the service was under strain and ridership had significantly declined.
Revel initially started as a small operation in Brooklyn with only 68 electric mopeds in 2018 but quickly expanded to become a major player in the micro-mobility industry. By 2021, they had over 3,000 e-mopeds in New York City and additional 3,000 in other urban centers.
However, as the company ventured into other areas of the electric mobility market, the popularity of its moped-sharing service began to decline. Revel diversified its offerings to include electric ride-hailing and EV charging infrastructure. They recently opened their third “Superhub” in Queens and have plans to construct a charging station in the Bay Area.
While the cessation of the moped service marks the end of an era for Revel, it also signifies the company’s forward-thinking approach. The electric ride-hail service now boasts a fleet of 500 electric vehicles, including Tesla Model Ys and 3s, as well as Kia Niros.
The decision to end the moped service comes as ridership declined approximately 30% year-over-year in both San Francisco and New York. The company deemed it unsustainable to continue operating under these conditions.
The last day of Revel’s moped service will be on November 18, 2023. The company plans to send the decommissioned mopeds to recycling facilities in New York and the Bay Area. While this shift in focus may result in layoffs for 67 employees in moped operations, Revel has assured that they will be eligible for severance benefits.
Revel’s transition from a niche moped-sharing service to a comprehensive electric mobility provider reflects the dynamic nature of the industry. By concentrating on their electric ride-hailing service and expanding their EV charging infrastructure, Revel aims to stay competitive in the market.
This shift aligns with the broader efforts to provide sustainable and convenient transportation options to urban residents. The success and effectiveness of Revel’s redefined business strategy will be closely watched in the coming months.
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