Former competitors become allies! Revel ends its ride-hailing business in New York and partners with Uber Technologies, Inc. (UBER.US) to build a charging network.

date
11/08/2025
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GMT Eight
Shared mobility platform Revel Transit Inc. has decided to terminate its ride-hailing operations and shift its strategic focus to the electric vehicle charging sector. This New York-based company, after facing intense competition in the local market, has chosen to establish a partnership with former rival Uber to jointly expand their charging station network.
Revel Transit Inc., a shared mobility platform, has decided to terminate its ride-hailing operation and shift its strategic focus to the electric vehicle charging sector. The New York-based company, after facing intense competition in the local market, has chosen to establish a partnership with its former rival Uber Technologies, Inc. to expand the charging station network. The company's co-founder and CEO, Frank Reig, announced that they will officially notify users and drivers of the decision to terminate the service this Monday. It is reported that Revel plans to sell its 165 ride-hailing licenses, with Reig revealing that the current market price for each license is approximately $20,000 to $25,000. The company also plans to sell or lease its iconic blue Tesla, Inc. and Kia electric vehicles. Reig stated, "Ultimately, the ride-hailing industry is highly competitive and capital-intensive, with thin profit margins. We have made the difficult decision to terminate our shared mobility service and focus on building the fast charging infrastructure needed for the transition of large cities to electric vehicles, which is the best way to drive the transformation of electric vehicles." This move marks the end of Revel's four-year ride-hailing business. As New York's first all-electric vehicle fleet operator, its fleet has grown from 50 vehicles in the early stages to 500 vehicles, but still falls short in comparison to Uber Technologies, Inc. and Lyft. A company spokesperson revealed that in the past 3-6 months, Revel has had an average of 45,000 monthly active users, 670 drivers, and approximately 100,000 monthly orders. In contrast, data from the New York City Taxi and Limousine Commission shows that Uber Technologies, Inc. and Lyft's over 80,000 drivers completed nearly 20 million trips in June. Currently, Revel's self-built fast charging stations mainly serve Uber Technologies, Inc. and Lyft drivers, as both platforms are accelerating the electrification of their fleets. Revel has 5 charging stations in New York City and 1 in San Francisco (with a total of 100 charging stations), with plans to expand to over 400 charging spots in Los Angeles, San Francisco, and New York (including Queens, Maspeth, and LaGuardia Airport) by the end of 2024, and aiming for 2000 charging spots by 2030. As Revel continues to expand its charging infrastructure nationwide, the company is constantly adjusting its business focus, especially in areas like New York and California where there are government mandates for transitioning to electric vehicles. Last year, the company shut down its electric scooter rental business and dismissed its driver team to transition to a contractor model similar to Uber Technologies, Inc. and Lyft. "Five years ago, when we were building our electric vehicle fleet, there was a severe lack of charging stations, and investing in charging infrastructure faced the challenge of a lack of users," Reig said. "Now, with Uber Technologies, Inc. and Lyft rapidly electrifying their fleets, the usage of charging stations by their drivers far exceeds what it was two or three years ago." The collaboration with Uber Technologies, Inc. has had significant results: Uber Technologies, Inc. has promised its New York drivers exclusive discounts for using Revel charging stations. This has increased the usage rate of the charging stations from 18% in the same period last year to 45% in the first quarter of this year (excluding the company's own fleet, it is 33% calculated as a percentage of the total effective charging time over 24 hours). Reig stated that the high usage rate has made the charging stations profitable, but when considering overall operating costs, the company's business has not yet generated cash flow. The expansion plans will drive the company towards overall profitability. Previously, it was reported that the company's largest equity investor, a company from BlackRock, Inc.'s infrastructure fund, had sought $200 million in financing, but Reig stated that this round of financing was not completed last summer when the company decided to transition. However, the company has secured a loan of $60 million from the New York Green Bank (New York State Clean Energy Fuels Corp. investment fund), which will provide financial support for its infrastructure development goals for the next year.