Electric vehicle startup Rivian Automotive (RIVN) is spinning off a new micromobility company called Also, backed by $105 million in funding from Eclipse Ventures.
Also will focus on small, lightweight vehicles such as e-bikes and scooters.
The company said it began developing the concept as a stealth program “several years ago” to explore whether Rivian’s strengths in software, electronics, and electric propulsion could deliver a more cost-efficient model than what’s currently available.
“As these efforts advanced, it became clear that Rivian’s approach had the potential to unlock a large opportunity that deserved to be its own company,” the company said in a release.
Rivian will keep a “substantial minority stake” in the new company, and CEO R.J. Scaringe will serve as board chairman.
Significant market opportunity that comes with challenges
With electric vehicle (EV) titans BYD and Tesla — and legacy automakers launching their own EVs — dominating the market, smaller companies have little room to compete.
The micromobility sector, however, offers Rivian a promising detour.
With its Also spinoff, the company is tapping into a market relatively free of the entrenched incumbents that define the mainstream EV space.
The industry has not been without setbacks. Safety concerns have led to massive recalls and prompted some cities around the globe to consider banning e-bikes and e-scooters.
Despite these hurdles, McKinsey projects that the micromobility industry could surge to $520 billion by 2035. Investment in the sector has already reached $16 billion since 2018 — with e-scooters attracting 40% of that funding.
The market’s potential remains unproven, and it is unclear if investors will fully embrace Rivian’s foray into micromobility.
Since the project was developed in “stealth,” details are only now emerging. Indeed, “the words micromobility, bike, or e-bike don’t appear in Rivian’s annual report,” Barron’s noted, indicating that the market is just beginning to learn about the venture.
RIVN stock have risen nearly 7% over the past five days.
In its spinoff announcement, Rivian also updated investors on progress with its core business. The company is making “significant progress” toward launching R2, its midsize SUV, set for debut in the first half of 2026.
CEO R.J. Scaringe emphasized that while Also will bolster Rivian’s overall strategy, it will operate independently, ensuring that Rivian’s primary business remains unaffected.
“For the world to fully transition to electrified transportation, a range of vehicle types and form factors will be needed,” he said.
“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.”
Your email address will not be published. Required fields are markedmarked