Revel Transit Inc. is officially pulling the plug on its New York rideshare service, ditching the competitive, low-margin business to focus entirely on building EV charging infrastructure.
The pivot ends a four-year run for Revel’s all-electric rideshare, which launched with just 50 cars before growing to a fleet of 500 blue Teslas and Kias. CEO and co-founder Frank Reig confirmed the decision Monday, saying the company has already begun notifying customers and drivers.
The move isn’t just about walking away from a fight with Uber and Lyft – it’s about joining forces with them. Revel’s charging stations are already heavily used by drivers from both companies, thanks to a deal with Uber that guarantees usage in exchange for discounted charging rates. That partnership helped push Revel’s charger utilization rate to 45% in the first quarter of 2025, a major jump from 18% a year earlier. Without its own fleet, utilization still sits at 33%, showing just how dependent the business has become on rideshare drivers who don’t work for Revel.
Reig admits rideshare was never an easy business to run. “At the end of the day, rideshare is very competitive and asset-heavy. It’s low margin,” he told Bloomberg News. Revel will now look to sell its 165 for-hire vehicle license plates – each worth $20,000 to $25,000 – along with its fleet of Teslas and Kias, either through sales or by returning leased cars.
Revel’s rideshare operation was small compared to its rivals, averaging about 45,000 monthly riders, 670 drivers, and 100,000 rides over the last several months. That’s nothing next to the nearly 20 million monthly Uber and Lyft trips completed by more than 80,000 drivers in New York City, according to the Taxi and Limousine Commission. But what Revel lacked in rideshare scale, it’s now betting it can make up for in charging power.
Currently, Revel operates 100 public fast chargers across five stations in New York City and one in San Francisco. By the end of 2026, the company aims to triple that to over 400 stalls, expanding into Los Angeles, San Francisco, and new NYC sites like Maspeth, Queens, and LaGuardia Airport. The long-term goal? As many as 2,000 chargers by 2030.
This isn’t the first time Revel has made a big shift. In 2023, the company shut down its moped rental service and laid off employee drivers to move toward the independent contractor model used by Uber and Lyft. The changes were part of a push to strengthen its EV infrastructure business, particularly in New York and California, where electrification mandates are pushing the adoption of zero-emission vehicles.
Reig says the company’s charging sites are already profitable due to high utilization, but the overall business still isn’t cash-flow positive when factoring in all expenses. That’s where expansion comes in – more chargers, more usage, and eventually, profitability. Revel’s growth will be partly funded by a $60 million loan facility from NY Green Bank, New York State’s clean energy investment arm. The company had previously considered raising $200 million in equity funding but scrapped the plan after deciding to exit rideshare last summer.
Reig’s vision is simple: five years ago, there were no EV fleets and no charging infrastructure to support them. Now, Uber and Lyft’s rapid electrification means fleets are available – and they’re filling up Revel’s chargers faster than ever.
By walking away from a rideshare market dominated by giants, Revel is betting that the real money – and its future – lies in powering the vehicles, not driving them.
Leo Cruz brings sharp insights into the world of politics, offering balanced reporting and analysis on the latest policies, elections, and global political events. With years of experience covering campaigns and interviewing world leaders, Leo ensures readers are always informed and engaged.
