Shared electric moped startup Revel has made an official announcement that it will be shut down its operational service in Austin later this month. The startup’s CEO and co-founder Frank Reig has shared some of the companies views on taking the decision to shut down its operations. It looks like the company faced multiple losses during its last quarter of the year even before the pandemic. Most of the shared micro-mobility services around the world have started facing a downfall during the start of this current year which made several companies rely on innovative solutions to brings back their computational operations in reducing the operational costs.
Public transportation around the globe has faced million of losses during this pandemic season which caused million of employees to lose their job. Even though many countries’ governments extended their financial support, they still couldn’t able to reach remove the economic depression. It looks like this might get extended for more than a couple of years mainly due to the second wave which has started spreading in many European countries. Reig shared his view during the press conference held recently that while entering Austin to begin their public transit service they were aware of the challenge that they will be facing in the upcoming months.
Reig also made comments on the city’s deep-rooted car culture which made it more difficult to penetrate. The company spokesperson shared the companies experience during the last couple of months. Austin experience robust public transportation infrastructure where the majority of the population are used to experience car transportation for traveling from point A to B. This became a serious threat to their electric moped startup company which cannot receive a decent amount of traffic even after announcing several new offers and deals. It was made clear that Austin is very car-dependent where people refused to use two-wheeler transportation instead of a car traveling experience.
A global pandemic has become an additional contributing factor that caused more depression and forced the company to inherit more losses. Lack of visitors to the city during the global lockdown has pushed the company to face zero operations. The company started its initial business operations in Brooklyn, based on the initial testing results and performance, it expanded to Queens. It looks like the company faced a fast-paced growth track mainly because of the huge capital amount which the company collected during October 2019. It was announced that the startup company has received $27.6 million in capital from various international investing firms.
Toyota AI Ventures is one of the big tech companies which have to invite millions of dollars in this electric moped startup company. Toyota has been actively investigating the core structure of multiple startup companies before extending its financial and technical help. Following Toyota, three other investment firms have been reported of investing millions of dollars into the startup company. Blue Collective, Launch Capital, and Maniv Mobility are the three big investment firms that have invested millions of dollars for helping this company to expand its business operations. The company has expanded to various other cities during the course of 18 months.