Frank Reig of Revel: Business Growth & Future Plans

Revel's Expansion Beyond Electric Mopeds

Having debuted just three years ago, Revel’s distinctive blue electric mopeds have rapidly become a familiar sight in cities like New York and San Francisco, and in an increasing number of locations across the United States. However, the vision of Revel’s founder and CEO, Frank Reig, extends considerably beyond simply establishing a shared moped service.

Diversification of Services

Since the start of 2021, Revel has broadened its scope to include an e-bike subscription service, a venture focused on EV charging stations, and an all-electric rideshare service utilizing a fleet of 50 Tesla vehicles.

We recently spoke with Reig to discuss the lessons learned during the company’s development, how Revel’s business strategy has changed, and its future direction.

The Genesis of Revel

The concept for Revel originated from a common entrepreneurial observation: Reig identified an unmet need in the market. Having observed the widespread use of mopeds as primary transportation in Europe, Asia, and Latin America, he questioned their relative absence in American cities, particularly his hometown of New York City.

In 2018, Reig resigned from his position, secured $1.1 million in funding from 57 investors, and initiated a small-scale pilot program with 68 mopeds in Brooklyn. Further venture capital funding of $4 million was raised in May 2019, enabling expansion to 1,000 electric mopeds across Brooklyn and Queens.

Revel subsequently obtained an additional $33.8 million in September 2019, with investment from Ibex Investments, Toyota Ventures, Maniv Capital, Shell, and Hyundai, as stated by Reig. This capital infusion facilitated the execution of a more ambitious plan to construct a comprehensive electric mobility company.

Currently, the company operates a fleet of over 3,000 e-mopeds in New York City, and an additional 3,000 across Washington, D.C., Miami, Oakland, Berkeley, and San Francisco.

Interview with Frank Reig

The following interview has been condensed and edited for clarity and is part of a continuing series focusing on founders within the transportation industry. A follow-up interview will be conducted one year after the original publication.

TechCrunch: You’ve introduced three new business areas and indicated that further expansions are planned. That represents significant growth.

Frank Reig: Indeed, we’ve experienced a dynamic start to 2021! We announced the deployment of fast-charging stations throughout the city, addressing the substantial infrastructure gap hindering the widespread adoption of EVs. We also launched our e-bike subscription program, providing New Yorkers with an alternative transportation option, and with our new electric ride-sharing service, we are tackling the challenge of balancing EV charging availability with demand. We are dedicated to developing these business lines alongside our existing moped service and are enthusiastic about the future.

A Holistic Approach to Electric Mobility

When other shared micromobility companies grow, they typically just add different types of vehicles. You’re taking a different approach – offering an e-bike subscription, building EV chargers, and launching an EV rideshare service. It’s a very broad strategy.

Electrifying mobility in major cities fundamentally requires infrastructure. We are proactively addressing this by building the necessary infrastructure and operating fleets. Currently, the infrastructure for electric mobility is lacking in a city like New York.

While a few Tesla superchargers exist, they are often located behind parking fees, requiring payment for garage access. Furthermore, this infrastructure is only relevant to Tesla owners. Public fast-charging options are scarce. We are constructing 30 charging stations at a single location and plan to add many more throughout 2021.

Operating in New York City presents unique complexities. Therefore, expanding into e-bikes as a service is a logical step, leveraging the infrastructure and on-the-ground operations we established with the mopeds. We have multiple warehouses throughout the city, a dedicated full-time staff, including field technicians and mechanics, and a fleet exceeding 3,000 vehicles. Adding another product to our platform to reach new users or complement the existing moped service is a natural progression.

Maintaining Focus Amidst Expansion

Are you concerned that this diversification might dilute focus on the core moped business?

There is considerable focus on the moped business. We are actively planning expansion in 2021 as markets recover from COVID-19 and growth opportunities emerge. We are heavily preparing for increased summer demand, which we anticipate will be substantial. I believe people have accumulated a “mobility debt” – a desire to reconnect with friends and family and enjoy dining out. As vaccinations increase and cities fully reopen, there will be a surge in movement. I am very optimistic about the future of the moped business this summer.

Having operated mopeds for three years across diverse urban environments, we have developed significant expertise. 2021 is about realizing the broader vision we’ve held since the beginning, now that we have the capacity to execute it.

The Future of Electric and Autonomous Mobility

This is a pivotal moment in electric mobility. The past century has been dominated by human-driven, gas-powered vehicles. However, starting in 2021, we are witnessing a genuine shift towards electric and autonomous technologies. The company that succeeds in the electric race will likely lead the autonomous race. The company that establishes the electric infrastructure, understands fleet operations at scale, and is actively doing so now, will position itself for the future of autonomous vehicles, whether that future arrives in seven or seventeen years. Revel is strategically positioning itself at the convergence of the energy transition and major metropolitan areas.

You mentioned further developments are planned. Does this “more” relate to automation?

Our rideshare launch utilizes Model Y vehicles driven by employee drivers. However, long-term, we recognize that the company that leads the transition to electric will be well-positioned to lead the transition to autonomous vehicles. In that regard, we are already taking the necessary steps.

Investor Perspectives

As you’ve secured funding from various investors, what aspects of your business strategy have they found most appealing?

Investor interest spans a wide range. Our current investors strongly support our expanded vision. In several of our markets, we have hundreds of thousands of users who are familiar with and appreciate our moped service. The question is how to grow from several hundred thousand users in a city like New York to several million, and how to increase revenue and usage per user. We aim to deepen our presence in select markets, expand the platform, build the necessary infrastructure, and offer users additional products and services. Our strategy is to focus on a few key markets and establish a strong, comprehensive presence rather than attempting to be everywhere.

Lessons Learned

What has surprised you during this journey? What have you learned?

I’ve learned the importance of continuous learning, as there is always more to discover. As CEO, I am constantly encountering new information, challenges, and decisions that require careful consideration, often without complete data. It’s a continuous learning process.

How have your past decisions shaped your current strategy and outlook?

We are constantly learning from our mistakes, which is essential for any successful company. Like all startups, we’ve made our share of errors. We’ve become adept at conducting thorough analysis to ensure profitability and responsible capital allocation before expanding into new markets.

Our past decisions also reinforce what we’ve done well. For example, last summer, we observed a change in rider behavior in New York City, with a significant increase in helmet non-compliance – something we hadn’t seen in two years. We recognized the issue, took accountability, and proactively addressed it. We collaborated with the New York City Department of Transportation, the Mayor’s Office, and other stakeholders to temporarily suspend our service for four weeks to implement safety enhancements. This was the best decision the company made in 2020, as it strengthened our relationships with regulatory bodies and political leaders not only in New York City but in all our markets.

Looking Ahead

Where do you envision Revel being a year from now?

Revel is strategically focused on the future of mobility, which is the transition to electric – and that transition is happening now. We are concentrating on major urban markets, building the infrastructure today, not in 2025 or 2030. We are extending our platform to provide Revel for every trip within a major city.

No other company is pursuing this future in the same way we are. We have a unique approach to this space. A year from now, I want Revel to be recognized as the company that has fundamentally changed the paradigm and established the most successful model for electric mobility. I want that to be the prevailing conversation among investors and transportation industry observers.