The electric mobility landscape saw a significant shift this week as Revel, once known for its blue Tesla ride-hailing service in New York City, announced it’s abandoning its taxi operations to double down on electric vehicle charging infrastructure. The pivot represents a strategic bet on the growing demand for charging stations as EV adoption continues to accelerate across urban centers.
Founded in 2018 by Frank Reig and Paul Suhey, Revel initially made its name with shared electric mopeds before expanding into the competitive ride-hailing market with a fleet of 50 Tesla Model Ys in 2021. The company’s distinctive blue vehicles became a familiar sight in Manhattan, offering a zero-emission alternative in the congested ride-hailing space dominated by Uber and Lyft.
According to internal data shared with investors, Revel completed over 100,000 rides in its first year of operation. Yet despite this apparent traction, the economics proved challenging. “The unit economics of ride-hailing simply didn’t make sense for our long-term vision,” Reig explained in a statement to Epochedge.com. “We discovered our charging infrastructure was not just supporting our vehicles but meeting a critical market need.”
The company’s shift comes at a pivotal moment in the EV infrastructure landscape. Data from the Department of Energy shows that while EV sales increased 65% last year, public charging station growth lagged at just 37%, creating what industry analysts call a “charging desert” in many urban areas.
Revel’s charging facilities, known as “Superhubs,” have become increasingly popular among EV owners in New York. The company’s flagship Brooklyn location, featuring 25 fast-charging stalls, regularly operates at 85% capacity during peak hours, according to the company’s operational reports.
“What we’re seeing is that demand for reliable, accessible urban charging far outstrips current supply,” says Jessica Matthews, senior analyst at Bloomberg New Energy Finance. “Companies that can secure prime real estate and deploy fast chargers at scale have a significant first-mover advantage.”
The economics of charging infrastructure also appear more sustainable than ride-hailing. Industry data from McKinsey suggests that well-located urban fast-charging stations can achieve 15-20% operating margins, compared to the razor-thin or negative margins common in ride-hailing operations without massive scale.
Revel’s strategy includes expanding its existing New York network while establishing new Superhubs in other East Coast urban centers. The company has secured $50 million in fresh funding, according to sources familiar with the deal, specifically earmarked for this expansion.
The charging landscape is becoming increasingly competitive, however. Traditional energy companies like BP and Shell have made significant investments in charging networks, while specialists like EVgo, ChargePoint, and Electrify America continue to expand their footprints. Tesla’s Supercharger network also recently began opening to non-Tesla vehicles, adding another layer of competition.
What potentially differentiates Revel is its focus on dense urban environments where real estate is at a premium. “Their strategy of targeting high-traffic urban locations with multiple fast chargers creates a network effect,” explains Marcus Johnson, director of electric transportation at the Electric Power Research Institute. “EV drivers know they’ll likely find an available charger, which builds loyalty and repeat usage.”
The company’s experience operating a commercial EV fleet has also provided valuable insights. “We’ve learned firsthand about the pain points EV owners face,” says Reig. “Our Superhubs are designed based on real-world usage patterns, not theoretical models.”
Federal funding could further accelerate Revel’s expansion plans. The Bipartisan Infrastructure Law includes $7.5 billion for EV charging infrastructure, with significant portions allocated to urban areas. Revel has already secured $10 million in grants from state and federal programs to support its New York operations.
Not everyone is convinced the pivot will succeed. “Building charging infrastructure is capital intensive with longer payback periods than many investors prefer,” cautions Emily Stevens of Wood Mackenzie’s energy transition practice. “And the regulatory landscape across different municipalities adds complexity that can slow deployment.”
For the 150 drivers who operated in Revel’s ride-hailing service, the transition marks an end of an era. The company has offered severance packages and job placement assistance, according to internal communications reviewed by Epochedge.com. Some drivers may find opportunities within Revel’s expanding charging operations.
As EVs continue gaining market share—currently representing about 7% of new vehicle sales in the U.S. according to the Edison Electric Institute—the race to build supporting infrastructure intensifies. Revel’s bet is that focusing exclusively on this infrastructure play positions them for longer-term success than competing in the cutthroat ride-hailing market.
“Sometimes the best business decision is knowing what to walk away from,” Reig reflects. “We’ve chosen to focus our resources where we see the greatest opportunity to advance transportation electrification.”
For New Yorkers accustomed to hailing the distinctive blue Teslas, the service will wind down over the next 30 days. But if Revel’s vision proves correct, the company’s impact on urban mobility may ultimately be greater through the less visible but essential charging infrastructure powering the electric transition.
