Shared electrical moped startup Revel stated Friday that it’ll shut down its service in Austin later this month.
The startup’s CEO and co-founder Frank Reig didn’t place your entire blame on the COVID-19 pandemic, which has induced ridership to fall throughout shared micromobility providers in addition to public transit, for the corporate’s resolution. As an alternative, Reig cited the mix of Austin’s “deep-rooted” automotive tradition, which has solely grow to be additional engrained throughout COVID. The service will shut down in Austin on December 18.
“When Revel got here to Austin we knew there can be challenges,” Reig wrote within the assertion that was posted on Twitter. “Along with having a much less dense city core than our different markets, town’s deep-rooted automotive tradition has confirmed troublesome to penetrate, particularly throughout COVID.”
The corporate didn’t reply to a request for remark. TechCrunch will replace the article if the corporate responds.
Revel, based in March 2018 by Frank Reig and Paul Suhey, began with a pilot program in Brooklyn and later expanded to Queens, the Bronx and sections of Manhattan. It has been on a fast-paced progress monitor because of the $27.6 million in capital raised in October 2019 in a Sequence A spherical led by Ibex Traders. The fairness spherical included newcomer Toyota AI Ventures and additional investments from Blue Collective, Launch Capital and Maniv Mobility.
Revel expanded to Austin, Miami and Washington, D.C in its first 18 months of operation. In January, the corporate launched in Oakland and obtained a allow in July to function in San Francisco.
Revel has had a difficult 12 months, and never simply due to the COVID-19 pandemic. The corporate voluntarily shut down operations in New York on July 28 after a number of of its customers died in crashes. The corporate restarted its 3,000-strong fleet of mopeds in 4 boroughs after town of New York accepted its relaunch plan, which included a number of new options in its app geared toward rising security. Revel added coaching movies, assessments and a helmet selfie function that requires photographic proof the consumer is carrying a helmet, in addition to a group reporting instrument.