New York-based startup, Revel, has undergone several changes since its initial launch in 2018 as a dockless e-moped sharing service. With backing from BlackRock, the company briefly shifted its focus to e-bike subscriptions and launched a small number of electric vehicle charging stations throughout the city. It also introduced an all-Tesla, employee-only ride-hail service with the intention of utilizing its charging infrastructure more efficiently.
However, Revel recently announced another pivot and is abandoning one of its most unique features – employing over 1,000 drivers. Instead, the company is adopting a gig worker model similar to popular rivals Lyft and Uber. This decision comes after a successful pilot program with 100 Revel drivers in February and the addition of 100 more since then.
“The reason we ran this pilot in the first place was just increasing feedback from our driver pool, as well as in our recruitment efforts…The leading reason people didn’t want to join Revel was the lack of flexibility,” said Haley Rubinson, Revel’s vice president of corporate affairs.
Rubinson, the first hire at Revel, explains that drivers were initially drawn to the platform because they didn’t want the responsibility of owning or renting a vehicle, purchasing insurance, handling 1099 taxes, and managing expenses. However, it seems that Revel is now struggling to recruit new drivers to its platform. Rubinson states, “We have to be responsive to what the industry is telling us.”
- Current drivers on Revel’s payroll will have the option to become independent contractors after September 12, when the switch takes effect.
- Drivers can rent from Revel’s fleet of Teslas for $10 per hour, which includes auto liability insurance, vehicle cleaning and maintenance, and a full day of battery charging.
- In 2025, the company plans to open the platform to drivers with their own EVs, allowing Revel to grow its business without owning its assets.
Revel has made over 2.5 million rides with its fleet of 550 Teslas. However, the small fleet size has resulted in long wait times for customers compared to competitors Uber and Lyft, who have hundreds of thousands of drivers in New York City.
Despite this, Rubinson reports that Revel’s ride-hail business recently reached gross margin positivity and is on track to become EBITDA positive by the end of the year.
“Now there really is the opportunity to serve more of the city’s for-hire vehicle population,” stated Rubinson, emphasizing the company’s potential to cater to a greater portion of the market.
Revel’s increased fleet size will also support its long-term focus on EV charging infrastructure. According to Revel’s CEO, Frank Reig, over 90% of its charging hub utilization was previously from the company’s own ride-hail fleet. However, as electric vehicle adoption continues to rise, this number has now decreased to around 50%. Revel currently has three active charging hubs in New York, with plans to launch three more at various locations in the city, including one near LaGuardia Airport and another in the Bronx.
- Two hubs in Brooklyn (Bed Stuy and South Williamsburg)
- One in Long Island City, Queens
- Pier 36 in Lower Manhattan (opening this summer)
- Near LaGuardia Airport (future launch)
- In Maspeth, Queens (largest site with 60 plugs, future launch)
- In the Bronx (future launch)
Revel is also considering expanding to other cities, such as San Francisco and Los Angeles.
Since its launch, Revel has raised approximately $214 million, according to data from Crunchbase. TechCrunch reached out to backers at BlackRock, Toyota Ventures, and Maniv for their thoughts on the company’s latest shift, but did not receive a response in time for publishing.
