Revel Electric Rideshare - Tesla Fleet Now Available

Revel's Evolution: From E-Mopeds to All-Electric Rideshare

Originating in 2018 with a fleet of shared, dockless e-mopeds in Brooklyn, Revel subsequently broadened its service area to include Queens, Manhattan, and the Bronx, alongside several other cities across the United States. This year marked a new phase for the company with the introduction of a monthly e-bike subscription service in New York City, coupled with announcements regarding the construction of an electric vehicle charging hub in Bed-Stuy. Now, Revel is poised to launch a completely electric – and exclusively Tesla – rideshare service within Manhattan.

A Strategic Shift Towards Electrification Infrastructure

What initially appeared as a company exploring various mobility options seems to be coalescing into a deliberate strategy focused on controlling the electrification infrastructure of urban centers, beginning with New York City. This vision has been consistently championed by founder and CEO Frank Reig.

“Our core mission, since inception, has been to electrify cities,” Reig explained to TechCrunch. “This is achieved by providing the necessary electric transportation solutions for urban environments, and simultaneously developing the electric vehicle infrastructure to support this transition.”

Expanding the Electric Mobility Ecosystem

The new rideshare service, scheduled to commence in late May with a fleet of 50 Revel-branded Tesla Model Y vehicles, represents a logical progression in the pursuit of “electrifying every single trip within a city,” according to Reig. Customers will utilize the same application currently used for booking e-mopeds to access these ride-hailing services. The initial launch zone will be confined to areas below 42nd Street, with subsequent expansion contingent upon demand and data gathered during the initial phase.

According to co-founder Paul Suhey, Revel’s rideshare rollout mirrors the approach taken with its initial moped launch three years prior – beginning within a limited area and gradually expanding to encompass the entire city.

Navigating Regulatory Hurdles with the TLC

The company is currently navigating the application process to secure approval as an operator with the NYC Taxi & Limousine Commission. Revel reports that its initial application has been approved, however, obtaining a fully issued license requires further steps, including the association of a minimum of 10 vehicles with its newly established TLC base license number.

Although the TLC has imposed a cap on for-hire vehicles, exemptions are in place for wheelchair-accessible and electric vehicles. Despite appearing legally compliant, TLC Commissioner and Chair Aloysee Heredia Jarmoszuk expressed reservations.

“The cap on for-hire vehicles was implemented because supply already surpasses demand,” she stated. “The electric battery exemption is intended to incentivize existing licensed vehicles to adopt green technologies, not to overwhelm an already saturated market or disadvantage the Yellow Taxi sector in Manhattan. This rideshare initiative deviates from the intent of these regulations, and the TLC will conduct thorough due diligence.”

Revel's Response and Commitment

Reig responded by reaffirming the company’s position. “The TLC licensing process is objective, and we are confident in our ability to comply with all TLC rules and regulations,” he asserted. “While the TLC has paused new licenses for gasoline-powered vehicles, our all-electric Tesla Model Y fleet qualifies under the TLC’s Battery Electric Vehicle exception, which was recently renewed. Our operational capacity is determined by fulfilling the administrative licensing requirements, which we have been diligently pursuing.”

Suhey highlighted the importance of proactive driver recruitment as a key driver for initiating the rideshare service now, rather than awaiting full licensing.

“To effectively employ drivers, we must begin outreach and recruitment immediately,” Suhey explained to TechCrunch.

Competitive Pricing and an Employed Workforce

Reig indicated that Revel’s customer rates will be comparable to those of competitors such as Uber and Lyft. However, a key differentiator lies in the company’s intention to directly employ all of its drivers, rather than relying on gig economy workers.

“For the same cost, customers will have access to a fully electric vehicle operated by a company that employs New Yorkers, avoiding the practice of shifting insurance risks and asset depreciation onto residents simply seeking to earn a living,” Reig stated.

Owning the Fleet for Customization and Safety

Employing drivers isn’t solely a matter of ethical considerations for Revel. The company’s decision to own the Teslas is largely driven by the need for customization. The Model Ys will be finished in a distinctive “Revel-blue” and equipped with a touchscreen interface for controlling cabin features like temperature and music. Furthermore, the front passenger seat will be removed to facilitate adherence to COVID-19 distancing guidelines and provide riders with additional legroom.

Revel also drew lessons from the $200 million public relations campaign undertaken by Uber, Lyft, and Postmates to secure the passage of Proposition 22 in California, a ballot initiative that exempted app-based companies from treating workers as employees. Reig believes that these funds could have been better allocated to attracting and retaining a stable workforce, rather than continuously replenishing a disillusioned labor pool.

“Fleet ownership also enhances safety,” Reig added. “We can continuously monitor vehicle acceleration, speed, and braking. Each employed and trained driver will receive safety scores after every shift, enabling continuous improvement. This approach lowers insurance costs and reduces liabilities.”

Building an Electric Future

As cities increasingly prioritize electrification, Revel aims to be a central component of the evolving business models. Launching a ride-hail service is not merely about expanding into a new business line; it’s also about accelerating the development of the company’s charging infrastructure. Revel is striving to establish an electric monopoly while addressing the “chicken-and-egg” dilemma of potential EV buyers who hesitate due to limited charging options, and planners who are reluctant to invest in infrastructure without sufficient EV adoption.

“Our company’s overarching goal is to promote EV adoption and access to electric mobility in cities,” Suhey emphasized. “We consider this not just in terms of providing alternative modes of transportation – electric cars, bikes, or mopeds – but more broadly in terms of comprehensive electrification within urban environments.”

This article has been updated to include information from NYC TLC about the legality of Revel’s service, as well as Revel’s rebuttal.