Electric vehicle maker Rivian has announced that it's spinning off its stealth micromobility program into a new company called Also to help develop and produce lightweight electric bikes and scooters.
The new spin-off has also received $105 million in Series B funding from venture capital firm Eclipse to get the company moving into its next phase, The Verge reported.
"For the world to fully transition to electrified transportation, a range of vehicle types and form factors will be needed," said Rivian Founder and CEO RJ Scaringe in a statement.
"I am extremely excited about the innovations developed by the Also team that will underpin a range of highly compelling micromobility products that will help define new categories."
E-bikes and electric scooters offer a way to reduce road congestion, especially in crowded urban areas, while giving people a more efficient and affordable alternative to car commutes.
Since they run on batteries, there's no carbon pollution produced, and there are mental health benefits for older riders who may not have otherwise been able to explore the outdoors as easily.
When it comes to finding the right e-bike, companies like Upway, which offer up to 60% off regular retail prices, make the whole process much more palatable.
Charging costs are only around $50 per year, even for people who ride daily, and their clean energy use is the equivalent of 3,800 miles per gallon of dirty fuels. And now that e-bikes have been around awhile, it's even easy to find good deals on a used one, something Upway also does well.
Also (the company) is joining the fray at a high point in the electric micromobility market, as e-bike revenue is forecast to reach $2.17 billion in 2025, according to Statista. With an expected annual growth rate of 13.06%, revenue could reach $3.55 billion by 2029.
Eco-conscious consumers and urban commuters make up a large part of the surge in adoption, but these smaller electric vehicles are the primary mode of transport for delivery riders, at least in metropolitan areas.
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Sign me up 👍 Chris Yu, Rivian's VP of Future Programs, shared his thoughts on where the future of the segment lies, in terms of growth potential.
"You could almost say that the need for small form-factor EVs is a little bit more acute on the commercial side than the consumer side, especially within dense metro areas, particularly in Europe [where city centers are] shut down to cars and vans," said Yu, according to TechCrunch.
"We've seen an intense amount of excitement around a scalable platform approach for food, parcel, delivery, et cetera, type vehicles," he added.
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