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| Image Credits: Revel |
Revel, the New York-based mobility startup known for its fleet of bright blue Teslas, is officially shutting down its ride-hailing business and shifting its focus entirely to electric vehicle charging infrastructure. The company announced Monday that its rideshare service in New York City launched just four years ago has permanently closed.
In an email to customers, Revel said: “After 4 years and countless electric rides, we have made the difficult decision to permanently close our rideshare service today.” The message emphasized that while its ride-hailing chapter is ending, Revel’s commitment to the electric vehicle space is not. Instead, the company is pivoting to become a major provider of fast-charging stations in key U.S. cities, with plans to serve not only private EV owners but also drivers working for rideshare platforms such as Uber and Lyft.
Building the Backbone for Urban EV Adoption
Revel already operates about 100 charging stations split between New York and San Francisco, many of which are heavily used by Uber and Lyft drivers. According to a company spokesperson, the goal is to massively expand that footprint targeting 2,000 stations nationwide by 2030. Expansion plans are already underway, with Los Angeles and San Francisco set to join New York as core charging hubs.
The company has an existing partnership with Uber to bolster EV charging availability in New York City, addressing one of the biggest pain points for rideshare drivers transitioning to electric vehicles: reliable, high-speed charging in urban areas. “If you’ve got an EV, we hope you’ll charge up with us,” the company told customers in its farewell rideshare email.
CEO and cofounder Frank Reig echoed this sentiment on Revel’s website Monday, saying that when the rideshare service began, Revel vehicles were among the few EVs on New York’s streets. “Now they’re joined by thousands,” Reig said, adding that the company’s focus going forward is “building the fast charging infrastructure our biggest cities need to keep going electric.”
A Rideshare Experiment That Couldn’t Compete with Giants
Revel entered the ride-hailing market in 2021 with a distinctive model. Unlike Uber and Lyft, whose drivers are independent contractors, Revel initially employed its drivers directly and operated a fleet of Tesla Model Ys. This approach was designed to ensure both quality control and fairer labor conditions, but it also meant higher operating costs. By 2023, the fleet had grown to 500 cars.
However, the economics of competing with entrenched industry leaders proved challenging. Last year, Revel laid off its employee drivers and transitioned to a gig-work model, similar to its rivals, in an attempt to scale more flexibly. At its peak before the shift, the service had about 1,000 drivers. Despite these adjustments, Revel struggled to gain significant market share in a city already dominated by Uber, Lyft, and the traditional taxi industry.
Past Mobility Ventures and Safety Setbacks
Revel’s ride-hailing pivot isn’t the company’s first major course correction. Before launching its EV rideshare service, Revel operated a popular moped rental program in New York City. However, that service was discontinued after a series of safety concerns, including fatal accidents involving the company’s mopeds, raised questions about rider safety and operational risk.
The decision to wind down rideshare and focus exclusively on charging infrastructure reflects a growing recognition that EV adoption in urban environments hinges on access to charging as much as on vehicle availability. By supplying the backbone that supports the shift to electric, Revel hopes to carve out a leadership role in an industry segment that is expected to grow rapidly over the next decade.
