News Summary
Revel has permanently shut down its ride-hailing service in New York City after four years, redirecting efforts toward expanding electric vehicle charging infrastructure. With a current network of around 100 charging stations, the company plans to increase to 2,000 by 2030, partnering with Uber to boost its presence in major cities. This change reflects operational challenges within the ride-sharing market, prompting Revel to seek buyers for its vehicle licenses and pivot towards supporting sustainable transportation.
New York City – Revel Closes Ride-Hailing Service, Shifts Focus to Electric Vehicle Charging
Revel has announced the permanent shutdown of its ride-hailing service in New York City after four years of operation. This decision, communicated to customers via email, takes effect immediately.
From its launch in 2021, Revel had provided thousands of rides using an all-electric fleet of Tesla vehicles, growing to 500 cars in service by 2023. The company emphasized its commitment to supporting the electric vehicle (EV) market and intends to redirect its efforts towards expanding EV charging infrastructure.
Expansion of Charging Stations
Going forward, Revel will enhance its EV charging station network, with plans to establish additional stations in major cities, including Los Angeles, New York, and San Francisco. Currently, the company operates around 100 charging stations primarily utilized by electric vehicles associated with ridesharing platforms like Lyft and Uber.
Revel aims to have 2,000 charging stations operational by 2030, demonstrating its long-term vision for the EV sector. In line with this goal, the startup has formed a partnership with Uber to further expand its EV charging station presence in New York City.
Operational Changes and Market Dynamics
Revel was initially structured to employ its drivers as employees but switched to a gig-based model last year, laying off around 1,000 employee drivers. This restructuring reflects a broader shift within the ridesharing industry, which has become increasingly competitive and marked by low profit margins.
Co-founder and CEO Frank Reig acknowledged the challenges of operating in the ride-sharing market, indicating that it is asset-heavy and low-margin, which motivated the company’s decision to pivot towards charging infrastructure. Revel had previously engaged in moped rentals, but discontinued that service after two fatal accidents.
Future Transactions and Asset Management
As part of this transition, Revel is seeking buyers for its 165 for-hire vehicle license plates, which are valued between $20,000 and $25,000 each. The company is also looking to sell or return its fleet of blue Teslas and Kias.
With its focus now firmly on the development of fast charging infrastructure, Revel is repositioning itself as a key player in the EV market, aiming to enhance the accessibility of charging stations for electric vehicle owners. The company’s strategic pivot underscores its commitment to supporting a sustainable transportation future.
Deeper Dive: News & Info About This Topic
HERE Resources
Revel Transit Inc. Shifts Focus from Ridesharing to EV Charging in NYC
Additional Resources
- The New York Times: Revel Closes Ride-Hailing Service
- Wikipedia: Electric Vehicle
- Bloomberg: Revel to End NYC Rideshare Business
- Google Search: Revel electric vehicle charging
- Business Insider: Revel Ends EV Rides in New York
- Google Scholar: Ride Hailing Services
- The Verge: Revel Shutters Rideshare Business
- Encyclopedia Britannica: Ridesharing
- ZAG Daily: Revel Quits NYC Rideshare
- Google News: Revel Shutdown News
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