New York-based Revel Makes Yet Another Pivot
From Moped-Sharing to Electric Vehicle Charging Stations and Ride-Hail Services
Revel, a New York-based startup backed by BlackRock, has made a significant number of pivots since its initial launch in 2018 as a dockless-moped sharing service. In an effort to remain competitive and adapt to changing market conditions, the company has expanded into various sectors, including electric vehicle (EV) charging stations and an all-Tesla, all-employee ride-hail service.
A Brief History of Revel’s Pivots
Revel initially launched as a dockless-moped sharing service in 2018. However, it soon pivoted to become a brief e-bike subscription business before shifting its focus to EV charging stations across the five boroughs of New York City. The company also started an all-Tesla, all-employee ride-hail service, with the goal of ensuring that its charging infrastructure would see guaranteed utilization.
Dropping Moped-Sharing and Embracing a Gig Worker Model
In 2023, Revel dropped its moped-sharing business, which was once a key aspect of its operations. The company has now decided to abandon one of the main features that made its ride-hail service unique: the all-employee model. Revel is laying off its 1,000+ drivers and embracing a gig worker model similar to those used by Lyft and Uber.
The Reason Behind the Shift
According to Haley Rubinson, vice president of corporate affairs at Revel, the decision to adopt a gig worker model was driven by feedback from drivers and recruitment efforts. The company found that one of the leading reasons people didn’t want to join Revel was due to the lack of flexibility. With the new model, drivers will be able to choose when they work and how many hours they drive, giving them more control over their schedules.
Piloting the Gig Worker Model
Revel initially piloted the gig worker model in late February with 100 drivers and has since expanded it to include an additional 100 drivers. The company has found that four out of five drivers who participated in the pilot would recommend the program.
The Debate Over Employee vs. Contractor Status
The question of whether ride-hail drivers should be classified as employees or contractors has been a contentious issue for several years. Revel’s decision to adopt a gig worker model may have significant implications for the industry as a whole, potentially paving the way for other companies to follow suit.
Revel’s Latest Shift and Its Implications
While Revel’s latest pivot may seem like a departure from its initial focus on moped-sharing, it is actually a natural progression of the company’s efforts to adapt to changing market conditions. By embracing a gig worker model, Revel is able to offer drivers more flexibility while also reducing its operational costs.
The Future of Transportation
Revel’s latest shift highlights the ever-changing landscape of transportation startups. As companies like Lyft and Uber continue to evolve, it will be interesting to see how Revel and other players in the industry adapt to meet changing consumer demands.
Topics
- Layoffs
- New York
- Revel
- Startups
- Transportation
