Revel Mopeds Exit Austin: Why the Electric Scooters Failed

The electric moped sharing company, Revel, announced on Friday that it will be discontinuing service in Austin by the end of this month.

While the decline in ridership experienced by shared micromobility services and public transportation due to the COVID-19 pandemic played a role, Revel’s CEO and co-founder, Frank Reig, attributed the decision to a more fundamental issue. He pointed to Austin’s strong preference for personal vehicles, a tendency that has been reinforced during the pandemic. The service will cease operations in Austin on December 18th.

In a statement released on Twitter, Reig acknowledged the anticipated difficulties of entering the Austin market. He noted that, in addition to a less concentrated urban area compared to other cities where Revel operates, the city’s established car-centric lifestyle proved difficult to overcome, particularly amidst the challenges presented by COVID-19.

According to a company representative, Austin’s reliance on automobiles, and the limited availability of comprehensive public transportation options, created an unfavorable environment for Revel’s electric mopeds. The representative explained that the mopeds did not perform well within a culture so heavily focused on car ownership.

The pandemic further complicated matters. A decrease in tourism, reducing the number of people who might choose Revel over traditional car rentals, and a general reduction in local travel among Austin residents, intensified the difficulties within the market.

Established in March 2018 by Frank Reig and Paul Suhey, Revel began as a pilot program in Brooklyn before expanding to Queens, the Bronx, and parts of Manhattan. The company experienced rapid growth, fueled by $27.6 million in funding secured in October 2019 during a Series A funding round spearheaded by Ibex Investors. This investment round also included contributions from Toyota AI Ventures, Blue Collective, Launch Capital, and Maniv Mobility.

Revel launched services in Austin, Miami, and Washington, D.C. within its first year and a half. The company subsequently expanded to Oakland in January and obtained a permit to operate in San Francisco in July.

Revel has faced a difficult year, extending beyond the impacts of the COVID-19 pandemic. The company temporarily suspended operations in New York City on July 28th following a series of fatal crashes involving its users. After implementing enhanced safety measures, including training videos, knowledge tests, a helmet verification feature utilizing photo submissions, and a community reporting system, Revel received approval from New York City to relaunch its fleet of 3,000 mopeds across four boroughs.