Known for its bright blue Teslas frequenting the streets of Manhattan and mopeds strewn about the streets of several major American cities, Brooklyn-born Revel recently made the decision to pull all mopeds from the streets and shut down the rental service entirely on November 18. After several fatal accidents and a 30% decrease in moped rentals from last summer, Revel has been faced with the reality that its moped rental service is both dangerous and financially unsustainable. With the fall of the mopeds comes a complete pivot by Revel to its rapidly growing sustainable rideshare venture, powered by electric vehicles.
Initially launched in 2018 by Frank Reig and Paul Suhey, Revel began as an electric moped sharing service. Following the completion of a New York City-based pilot program, the company expanded to cities including San Francisco, Miami and Washington, D.C. In July 2021, Revel launched its rideshare service in New York City using Tesla Model Ys, allowing it to bypass the ban on new rideshare companies in the city, which has since been lifted. At the time, only companies using electric vehicles were permitted to launch in the city.
Since its inception, Revel has faced issues and criticism regarding the safety of its mopeds. Users are required to be at least 18 years of age and have a valid driver’s license. Despite the similarity of Revel mopeds to motorcycles, notably when it comes to the vehicle’s controls, their inability to operate in excess of 30 miles per hour permits users to ride them without a motorcycle license. In July 2020, three people were killed in accidents involving Revel mopeds in the span of ten days, including CBS reporter Nina Kapur. Revel resumed operations the next month with added safety features including a safety quiz and requiring riders to provide proof that they are wearing a helmet prior to operating the moped.
Ridership levels on Revel mopeds have decreased consistently since 2020, with Revel cutting the service in Miami and Washington, D.C. in 2022. Despite the failure of the moped branch, Revel has seen consistent demand and growth in its electric vehicle-based rideshare service and recently-opened charging stations. The company currently maintains a fleet of 300 vehicles, consisting of Tesla Model Ys, Model 3s and Kia Niros throughout Manhattan and Brooklyn. Featuring similar pricing to well-established rideshare companies such as Uber and Lyft, Revel provides riders with an environmentally conscious alternative at no extra cost.
In addition to rideshare, Revel is paving the way for sustainable transit in New York City through its superhubs, which provide electric vehicle owners with stations for fast charging. Revel currently has two superhubs in Brooklyn and one in Queens, with plans to build another one in Brooklyn’s Red Hook neighborhood after receiving $7 million for the project.
While Revel’s decision to exit the moped market is a considerable deviation from the company’s original model, the complete shift to electric vehicle ridesharing and charging is bound to create new conviction and opportunity for Revel as it continues to lift further off the ground.
