Dive Brief:
- Electric vehicle maker Rivian has spun out its micromobility business into a new startup named “Also” that will focus on small, lightweight electric vehicles, the company announced in a press release March 26.
- The startup secured a $105 million investment from venture capital firm Eclipse Ventures, which will support the next phase of the startup’s growth, according to the release. Rivian will remain a minority shareholder in Also and its founder and CEO RJ Scaringe will serve on startup’s board of directors as chairman.
- Rivian’s future plans for the new micromobility unit may include collaboration with its passenger vehicle business, including the use of the company’s EV retail locations.
Dive Insight:
Rivian started an internal stealth program at the company several years ago to focus on the growing electric micromobility sector, according to the release. The program was launched to look for ways to apply the company’s core strengths in software, electronics and electric propulsion to develop new micromobility offerings, such as electric bicycles, in order to address the global transportation challenges both today and in the future.
Rivian also said it recognized the need for small battery-powered vehicles to support the global transportation industry’s shift towards more sustainable forms of mobility.
“For the world to fully transition to electrified transportation, a range of vehicle types and form factors will be needed,” Scaringe said in the release. “I am extremely excited about the innovations developed by the Also team that will underpin a range of highly compelling micromobility products that will help define new categories.”
Rivian says it will share more details on Also and its products in the near future. The company did not share information about the types of EVs the micromobility startup plans to launch.
But Rivian joins other automakers that have explored expanding into the electric micromobility segment in recent years, such as electric scooters designed for last-mile trips in urban areas.
In January 2018, Ford Motor Co. launched “Ford X”, a new unit within its Smart Mobility division to build, acquire and pilot new transportation products and services. In November 2018, the automaker announced the acquisition of San Francisco-based electric scooter startup Spin as one of its first forays into the micromobility space.
Similarly, in May 2019, BMW unveiled its “E-Scooter” with a range of 7.5 miles, which was designed in collaboration with Micro. And in August 2019, luxury brand Audi unveiled an “e-tron electric scooter” concept, which was named after its lineup of fully electric passenger vehicles.
