🟦⚡ Revel Ditches W2 Driver-Employee Rideshare Model, Launches EV TLC Leasing Company
AutoMarketplace has long predicted Revel, the all-EV rideshare & infrastructure company, could not make W2 driver-employee model work. Revel is now marketing an hourly TLC leasing company!
Revel, the all-electric rideshare and infrastructure company, sent out one page distribution to its drivers - “About the Revel Platform Change”
Company states agreeing to new program means “you will no longer be an employee of Revel” and says after September 12th, this will be only way to participate on Revel’s platform
Revel rental rates, which appear to require driver to return vehicle to their “depots” or garages, run $10 per hour or $120 for a 12 hour shift (we believe)
Company also states “In the future, you will be able to drive your own EV on the Revel platform if you have one.”
NYC TLC Chair David Do previously characterized drivers paying $300 to $600 per week for a 24/7 TLC vehicle lease, that a driver could take home as “predatory”, Revel’s effective like-for-like 24/7 rental rate is $1,680 per week!
If we told you 1,500 NYC TLC drivers are getting fired by a company, how would you react?
That is basically what is happening in the coming months. According to a Revel distribution sent to its drivers, the all-EV startup is ditching its W2 employee-driver model and is now promoting an EV TLC leasing company, that gives drivers access to its rideshare platform, while classifying them as 1099 independent contractors 🤔. We also believe this decision might be driven by investor demands, given Revel is trying to raise $200 million of new capital, according to Bloomberg.
*TEXT OF OF REVEL DISTRIBUTION* (JUNE 6, 2024)
About the Revel Platform Change
What’s Happening
Revel launched a fare-based earnings program pilot late February to test this new model. It came in response to an overwhelming majority of drivers asking for more flexibility, which is standard in the industry. This included, but was not limited to, offering drivers more control over where and when they drive, the ability to take breaks when and for how long they want, and for more lucrative bonuses that are easier to achieve and align better with a driver's daily responsibilities.
If you’re interested in this new model, you will need to opt into it by signing a new agreement. Joining means you will no longer be an employee of Revel, but instead a customer of Revel’s vehicle rental service and a user of our ride matching platform. Drivers who transfer by September 12 can receive a $150 signing bonus, less applicable withholdings. All drivers joining the new program will earn bonuses of up to $150 per week through the end of June for completing certain ride milestones.
Interested in making the switch today? Contact us at support@landeydispatch.com or call (718) 213-4255. After September 12, this will be the only way to participate on Revel’s platform.
What’s New for You
No performance metrics impacting earnings
Get 100% of your earnings after each ride
Get real-time pay every hour
Choose when to drive; no required shifts or required attendance
Choose what rides you want to take
Go on and offline on your time — no scheduled break time
How to Get a Vehicle
Revel now has a leasing company where Tesla Model Ys and Model 3s are currently available to rent for $10/hour* from our depots in Brooklyn, Queens and Manhattan. Vehicles can be rented for 6 to 12 hours per day and can be returned to the depot at the end of your reservation. On pick-up, the EVs will be cleaned and charged for you, with insurance, parking and maintenance included. Access the Revel Rental Website to easily make reservations. In the future, you will be able to drive your own EV on the Revel platform if you have one.
What Other Drivers Are Saying
4 out of every 5 drivers said they would recommend the program
Of drivers who have driven on another platform, a majority said driving with Revel is better
70% of drivers said vehicle reservations met their expectations
Questions? Reach out to support@landeydispatch.com
*In addition to the hourly rental rate, you will pay a one-time $200 refundable security deposit
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We hope the value of our our articles and content speaks for itself. This particular moment though, provides a unique opportunity for us to market ourselves (just a bit).
We very specifically, and several times, predicted Revel’s W2 driver-employee model would not last and continue to predict its NYC rideshare service will permanently shut down. We believe the company will focus on its EV infrastructure business, if it can raise the necessary cash from investors.
Much more importantly, we warned NYC TLC-licensed drivers, who might be reliant on Revel for income (& the provision of a TLC-plated vehicle that they wouldn’t have to lease) to start coming up with backup plans. We hope our subscribers (and non-subscribers) impacted by this announcement took those warnings seriously.
While the above announcement does not categorically say or mean Revel is shutting down its NYC rideshare service, it does confirm by September 12th there will be no more Revel W2 driver-employees. The announcement also states its rideshare platform is going to open up to any NYC for-hire EV (“In the future, you will be able to drive your own EV on the Revel platform if you have one.”)
That Revel is turning itself into more of a NYC TLC leasing company (not sure if the Baby Blue vehicles are going?), where a Revel lessee can access its rideshare platform, and also presumably work for other bases, like Uber, is telling. It might also explain why Revel’s base dispatching data disappeared just as they were approaching the 10,000 trips per day HVFHS base license threshold.
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🤔 Let’s Talk About “Predatory”
NYC TLC Chair David Do justified the release of thousands of EV restricted TLC-plated vehicles last year (both in March and October) by essentially blaming and defaming “predatory” TLC leasing companies. Undoubtedly, the addition of over 10,000+ newly TLC-plated vehicles in 2023 alone, is partially to blame for current Uber NYC driver “lockouts”.
Do and his TLC shared fundamentally flawed “political” math to promote a conclusion. In addition, no public hearings were ever held to specifically address this topic. Remember, Do and his TLC wanted to focus on this, but didn’t want to gather all sides of the story. We consistently warned about this characterization coming from the leader of NYC for-hire regulator and what type of rhetoric it would promote.
Our readers will know this is a topic we’ve covered at length. We also run a TLC leasing company, but have had a nuanced perspective about how to regulate bad leasing market actors (i.e., Lease Caps) and also create mechanisms to give the opportunity for a driver to claim their own FHV License (TLC Plate) without flooding the market with new cars (i.e., reissuance of already handed in vehicle licenses to individual long-time TLC drivers who currently lease their car).
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While his math kept on changing, Do defined a “predatory” lease using figures ranging from $300 per week to $600 per week. To be clear, these leases were inclusive of commercial liability (often comprehensive & collision) insurance, maintenance, etc. and allows NYC TLC drivers to have 24/7 access to the vehicle, take it home and return it with short notice (typically 1 to 2 weeks).
“Now drivers are not going to be…[beholden to a predatory lease]…If you’re putting $300 plus toward a weekly lease, that’s money out of your pocket.”
- TLC Chair & Commissioner David Do, October 18th, NYC Mayor’s Office Press Briefing
According to Revel’s announcement the company will be charging $10 per hour to rent a vehicle from them, or $60 for a 6 hour shift and $120 for a 12 hour shift (we assume, based on their announcement). In addition, it appears a driver will need to return the vehicle to a Revel “depot” or their garage(s).
We’re also not sure if Revel’s rate is inclusive of ~20% sales tax for short term NYC vehicle rentals, at least on the vehicle portion of the lease. In other words, like-for-like if a driver(s) tried to replicate what Do defined as a “predatory” lease with Revel’s rates, the numbers are astonishing.
- $120 per 12 hour shift * 2 shifts * 7 days per week = $1,680 per week to rent a Revel TLC-Plated EV 24/7
- $120 per 12 hour shift * 1 shift * 7 days per week = $840 per week to rent a Revel TLC-Plated EV per day for one shift (Note: not like-for-like comparison)
- $120 per 12 hour shift * 1 shift * 6 days per week = $720 per week to rent a Revel TLC-Plated EV per day for one shift (if a driver works 6 days a week & not like-for-like)
Revel being allowed to get access to over 150 FHV Licenses in corporate entities by the TLC demands immediate investigation by City Council.
This can be the beginning of what Automarketplace has been predicting for some time already. In my opinion, it would be a matter of time before they realize their leasing structure will also not work and start lowering prices or start promoting a "Bring your Own EV" plate rental or "Lease to own" program.
What really is going to decide if their rideshare business stays in the industry for a little longer is definitely if TLC decides to eliminate the UR, that will open up another platform for EV drivers to join and make money even sooner than what they are expecting as a company, their investors could possibly look at this as an opportunity to really compete in the nyc rideshare market since it will create what the perfect scenario for these apps no UR and a lot of drivers looking for passenger demand (which it will happen even with a license cap) with this is I am not saying this cannot be beneficial to the industry, in fact it can.
Last but not least, Will Revel continue to be the Federal and local government's favorite after ditchingtheir W-2 structure? Not sure, if anything they will be consider the least worst on the list as long as they continue to grow and expand their charging infrastructure and because of their fleet being fully electric. This also sets a precedent that will help local and federal government to understand that not every industry will fit under a W-2 structure.
Many have asked the question if they can collect unemployment once they are let go?