News Summary
Revel has announced the closure of its e-hail rideshare service, effective immediately. This decision, driven by competition from major players like Uber and Lyft, allows Revel to redirect focus towards enhancing its electric vehicle charging infrastructure. The company aims to boost its EV charging stations from 100 to over 400 by 2030. The shutdown will impact around 80 employees, and Revel seeks to offload its fleet of vehicles while prioritizing the development of fast-charging hubs in New York City.
New York City – Revel has officially ceased operations of its all-electric vehicle e-hail service as of August 11, 2023. The company communicated the closure on its website, stating simply that “Revel’s rideshare service has ended.” This transition marks a significant shift in the company’s business strategy as it aims to focus on its electric vehicle (EV) charging infrastructure.
After four years of operation, Revel’s rideshare service utilized a fleet of 500 Tesla and Kia vehicles. However, the company faced increasing challenges in competing with dominant players in the ride-hailing market, namely Uber and Lyft, which together boast networks of over 80,000 drivers in New York City. Revel’s position became increasingly untenable in the highly competitive environment, leading to the decision to shut down its rideshare operations.
Frank Reig, co-founder and CEO of Revel, explained that the move to end the rideshare service is intended to better support the shift towards electric vehicles by prioritizing the expansion of charging infrastructure. Currently, the company operates 100 EV chargers across five stations in New York City and one in San Francisco, but it has ambitious plans to increase this to over 400 charging sites, with a long-term goal of achieving 2,000 by 2030.
Despite the struggles of its rideshare service, Revel reported that its individual charging sites have been profitable, even as the company as a whole has yet to achieve profitability. Notably, approximately 70% of the customers utilizing Revel’s charging stations are rideshare drivers. To further enhance its business, Revel has partnered with Uber to provide discounted rates for Uber drivers using its charging infrastructure. The utilization rates for Revel’s chargers have shown a positive trend, growing from 18% a year ago to 45% in the first quarter of this year.
The decision to end the rideshare service will affect approximately 80 employees who will be losing their jobs. Additionally, Revel is in the process of seeking buyers for 165 for-hire vehicle license plates, with each plate estimated to be worth between $20,000 and $25,000. The company also plans to sell or return its fleet of electric vehicles, most of which are leased.
A key component of Revel’s future plans includes a significant fast-charging hub in Maspeth, Queens. This facility is expected to be the largest of its kind in the Northeast and will feature 60 chargers, highlighting Revel’s commitment to expanding its charging infrastructure.
Revel began its journey in 2018 as a moped rental service and expanded into the rideshare market in 2021. Initially, the service operated with employee drivers before transitioning to independent contractors in 2024. However, the company had previously attempted to diversify its offerings with moped rentals, which were ultimately halted in 2023 due to safety concerns and a decline in customer demand.
In summary, Revel’s cessation of its rideshare service underscores the challenges faced by new entrants in the highly competitive transportation market. The company’s pivot towards expanding its EV charging infrastructure represents a strategic decision aimed at cementing its role in the transition to electric vehicles, a sector that is gaining increasing importance in urban transportation.
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Revel Shuts Down Ride-Hailing Service to Focus on EV Charging
Additional Resources
- Bloomberg: Revel Ends NYC Rideshare Business
- Wikipedia: Electric Vehicle
- amNewYork: Revel Exits NYC Rideshare Market
- Google Search: Revel Electric Vehicle Charging
- Electrive: Revel Exits Ride-Hailing
- Google Scholar: Revel Rideshare
- VIN News: Revel Ends NYC Rideshare
- Encyclopedia Britannica: Electric Vehicles
- Business Insider: Revel Ends Ride-Hailing Service
- Google News: Revel NYC Rideshare
Author: STAFF HERE NEW YORK WRITER
NEW YORK CITY STAFF WRITER The NEW YORK CITY STAFF WRITER represents the experienced team at HERENewYorkCity.com, your go-to source for actionable local news and information in New York City, the five boroughs, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as New York Fashion Week, Macy's Thanksgiving Day Parade, and Tribeca Film Festival. Our coverage extends to key organizations like the Greater New York Chamber of Commerce and United Way of New York City, plus leading businesses in finance and media that power the local economy such as JPMorgan Chase, Goldman Sachs, and Bloomberg. As part of the broader HERE network, including HEREBuffalo.com, we provide comprehensive, credible insights into New York's dynamic landscape.
