In Midst Of Trade Wars, Rivian Spins Off New Micromobility Venture

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The US auto industry is facing yet another stint of chaos as President Trump follows through on his threat to impose a new 25% tariff on imported cars, which could help explain why the EV startup Rivian is suddenly so interested in micromobility. After all, if fewer people can afford to buy cars, more people might be tempted to try their luck with e-bikes or, for that matter, plain old bicycles.

$105 Million Says Micromobility Is The Next Big Thing

Rivian announced the new “Also” micromobility spinoff in a press release on March 26, in which the company also noted that it is still on track for the launch of its new R2 midsized electric SUV in 2026.

The release was short on detail about the micromobility venture, except for an interesting note about funding buried halfway down the release. “In connection with the spin-off, Also secured a $105 million investment from the venture capital fund, Eclipse Ventures, which will support Also’s next phase of growth,” Rivian stated.

Rivian doesn’t come out and say that the entire $105 million is earmarked for Also. Either way, the investment represents an interesting new direction for Eclipse. The firm’s portfolio is rather thin on startups that produce electric vehicles of any sort, with the exception of the electric watercraft startup Arc.

Eclipse prefers to focus on the “industrial evolution” side of the vehicle industry. The firm has a generous track record of investing in next-generation manufacturing systems, logistics, software, and other ventures closely related to transportation, micromobility, and electrification, including the publicly traded EV battery maker Enovix.

That dovetails with Rivian’s exploration of micromobility opportunities. Several years ago the company launched a “stealth program” to organize its software and EV systems around the micromobility theme, with the aim of staking out a foothold in the sparkling green global transportation market of the future.

Micromobility & Sustainable Transportation

The link between micromobility and sustainable transportation is already in evidence in cities, where delivery firms are beginning to establish hub-style systems that deploy cargo bikes for doorstep delivery instead of navigating an entire van or truck up and down the streets. At least, that’s what I’m seeing in my city. If you’re seeing something, drop a note in the comment thread.

Commercial micromobility is just part of the opportunity. Rivian also notes that it “retains a substantial minority ownership stake in Also and expects opportunities for future collaboration, which may include selectively using some of Rivian’s retail footprint.”

If that rings a bell, you are probably thinking of The Ford Motor Company, which has been been trying to make the “also” concept happen for about 10 years, meaning you can also bring your bike along with your car. The idea is a commuter-friendly one that enables drivers to park outside of congested urban destination or transportation hubs, then pull a two-wheeler (an e-bike or a bicycle) out of the trunk for an emission-free ride the rest of the way while scooting past traffic, too.

Last year Ford also expanded the idea to attract off-roaders and other recreational e-bikers with the launch of a new suite of e-bikes embellished with its iconic Mustang and Bronco brands.

Maybe Ford Was On To Something …

No word yet on e-bike sales from Ford, but the company did enlist an A-list manufacturer to produce the two-wheelers, and that could provide some insights into Rivian’s plan for using some of its retail footprint to showcase Also’s micromobility lineup.

It’s a matter of standing out in a crowded field. Ford, for example, did not place its precious Mustang and Bronco brands in the hands of a second rate bike factory. The automaker tapped the California-based startup N+ for the task, which is the same N+ that produces e-bikes branded under the Mercedes-AMG and McLaren F1 labels.

N+ has been very busy since launching in 2019. As of last August, the firm counted a global network of 16,500 dealerships, primarily through its partnerships with automakers, which fits neatly into the retail slot described by Rivian.

“The company also states that it has invested millions in R&D to engineer its 100% brand-bespoke e-bikes, with the aim of creating ‘some of the most desirable consumer products on the planet,” CleanTechnica observed last year.

Micromobility & The Battery Swapping Angle

All this is by way of saying that the e-bike market is ripe for premium brand penetration, and that’s just e-bikes. If Rivian’s micromobility plans include e-scooters, it’s a whole big world out there.

Rivian doesn’t say exactly what kind of tiny vehicles it has in mind, except to note that “Also will focus on small, lightweight vehicles that are designed to meet the global mobility transportation challenges of today and tomorrow.”

That likely includes e-scooters, cargo bikes, and electric motorcycles, and that raises the possibility that a battery swapping angle is in play. That remains to be seen, though it does dovetail with Eclipse’s focus on next-generation industrial systems.

Three-wheelers are another possible target with potential for battery swapping. Futuristic autocycles like the solar-enabled Aptera aside, small-scale three-wheeled vehicles were once commonplace in many markets. Now they are resurging in several key regions, including Latin America, the Mideast, and Africa along with the Asia-Pacific. Fossil fueled and foot-powered iterations are also in the mix, along with electric versions.

Another Missed Opportunity For Tesla

Speaking of premium-branded micromobility devices, Tesla has certainly missed the moment.

Take the electric delivery van market, for example. While Tesla CEO Elon Musk was hard at work “engineering” a new type of vehicle, the almost-a-pickup-truck-but-not-really Cybertruck, other automakers like Ford and GM were plumbing electric delivery vans for green gold.

Now Rivian is also poised to leapfrog over Tesla in that market. On February 10, Rivian announced that its Rivian Commercial van is now open to all fleets. Amazon initially had an exclusive on the next-generation van platform, building up to a fleet of 20,000. Rivian began testing it with other fleets after the exclusive period ended, and apparently they liked what they saw.

“Rivian’s in-house software stack controls nearly every interaction, from unlocking the vehicle and opening the door, to charging and acceleration. These tools help streamline the ownership experience, and minimize costs, while increasing safety and productivity,” Rivian explains.

Don’t hold your breath waiting for Tesla to tap into that market. The company is already faced with a fresh burst of competition in the robotaxi space, and its CEO is busy with other matters, such as throwing thousands of people out of work, tearing apart the US government as we know it today, and spending more dollars in support of Republican candidates for office (here’s another example).

If you have any thoughts about that, drop a note in the comment thread. Better yet, find your representatives in Congress and let them know what you’re thinking.

Photo: Rivian is leapfrogging over Tesla in the growing micromobility and electric delivery van spaces, while aiming for 2026 delivery of its new R2 SUV.