Rivian’s New Spinoff Also Inc. Targets Micromobility Market
Today, Rivian, the California-based electric vehicle (EV) manufacturer, announced the launch of a new spinoff company called Also Inc. This exciting initiative will focus on creating “small, lightweight” electric vehicles specifically designed for the micromobility market.
Leadership and Investment
Chris Yu, Rivian’s former VP of future programs, will lead Also Inc. as its president. According to the press release, Rivian retains a “substantial minority ownership stake” in the new enterprise, with CEO RJ Scaringe chairing its board of directors. Also has secured an initial investment of $105 million from Eclipse, a venture capital firm, to kickstart its operations.
Product Expectations
While Also has yet to unveil specific products, Yu has indicated that the technology platform developed at Rivian over the years will support a range of offerings. These may include electric bikes and smaller vehicles, such as neighborhood EVs and microcars. The company aims to reveal its flagship product this fall, with plans for U.S. deliveries set for 2026, and expansion into international markets like Europe, Asia, and South America thereafter.
Growing Demand for Micromobility
The emergence of Also Inc. comes amid a burgeoning demand for alternative transportation solutions. A study by McKinsey & Company revealed a projected doubling of shared micromobility trips within the U.S. by 2035, driven by urban regulations limiting car usage. Additionally, a survey of over 4,000 consumers showed that 24% already utilize micromobility options weekly, with another 30% intending to increase their usage in the future.
Amid the trend toward larger vehicles—often referred to as “car bloat”—there is a noticeable market gap for smaller vehicles. Traditional manufacturers, heavily focused on SUVs and trucks, may miss significant opportunities in the compact vehicle segment, making room for new entrants like Also.
Yu emphasized that Also’s offerings aim to fulfill a growing need for vehicles capable of maneuvering through urban environments more efficiently. “I think there’s this pent-up demand… for short trip missions,” Yu mentioned in an interview, highlighting the desire for convenient transport solutions for everyday errands.
Navigating the EV Landscape
The announcement of Also arrives at a time of uncertainty for the EV sector. Recent policy shifts by the current administration, including proposals to pull back on EV tax credits and pause new charging infrastructure projects, have created a challenging environment. Furthermore, uncertainty stemming from issues with major players like Tesla raises concerns about industry-wide repercussions.
However, Scaringe has reaffirmed Rivian’s long-term strategy, which remains unaffected by the current political landscape. “The product roadmap we built… is really being architected around a long-term view that the market will move over time to 100% electric,” he stated in a past interview with Fast Company.
Conclusion
As Also Inc. prepares to launch, it positions itself within a growing niche market that promises opportunities for innovation and development. With a focus on smaller electric vehicles tailored for urban environments, the new spinoff may play a pivotal role in shaping the future of micromobility.
