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!
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.
Great commentary, especially around not all industries fitting neatly into W2. Feel like a third category will be adopted eventually across the US, given so many people are now, in some form or fashion, 1099 ICs. The min pay rule in NYC could be seen as an experiment, specific to one market but applicable to many, where you're providing some W2 protections for 1099 workers. Trying to balance both ICs need & want to be independent and providing employment protections to prevent abuse
Is this an Onion article? It certainly reads like one with the satirical (and considering you predicted this) force of a tragic comedy. If I were an investor in Revel (either current or prospective) why in God’s name would I believe ANYTHING that came out of the mouths of those Revel executives who pitched this idiotic W-2 employee driver business plan. Anyone who is keenly aware of this industry knows that was a bad idea. Renting vehicles at $10/hour is a godawful idea. $1680/week?!? Revel executives to investors: “But wait! We have figured out bigger and better ways to really lose your money! We’re going to gamble with this latest round of funding by making EV charging infrastructure!” Revel wants to build infrastructure, an area that Tesla has basically abandoned and Tesla needed this infrastructure more than anyone! EV inventories are piling up, so who is going to use these chargers? Hybrid sales, on the other hand, are going through the roof and that makes sense. We’ve had at least a decade of reliable performance with hybrids. No tragic stories with hybrids. EV drivers still deal with “charging anxiety” when the battery levels get low and then they have to figure out where to charge if they’re not close to their home charger, and that’s IF they have a charger at home. This plan of renting EVs will not work for Revel. It’s too expensive and you can’t take the car home. The executive team at Revel should be fired. All these guys do is come up with stupid business ideas and lobby (and possibly outright bribe) the NYC government for favorable treatment because they can not grow organically on their own. Future Revel investors beware, you’re dealing with some numb skulls here.
Think a lot of people share your perspective and you've represented that perspective well with this commentary 👏 We continue to believe their rideshare business goes under, but they do have a lot of money to throw around!
Let's see! Surprised they ditched Congestion Pricing at the last minute after all those years, hearings, politics etc. etc. Agree that it's more likely a delay vs. them abandoning it
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.
Great commentary, especially around not all industries fitting neatly into W2. Feel like a third category will be adopted eventually across the US, given so many people are now, in some form or fashion, 1099 ICs. The min pay rule in NYC could be seen as an experiment, specific to one market but applicable to many, where you're providing some W2 protections for 1099 workers. Trying to balance both ICs need & want to be independent and providing employment protections to prevent abuse
You are 100% right, times have changed and some regulations should do so as well !
Many have asked the question if they can collect unemployment once they are let go?
Believe they can, but will look into this more 👍
120$ lease for one shift that's crazy sounds familiar to the yellow cab lease once useless TLC needs to cap the lease prices
Exactly, unfortunately its too expensive for drivers considering how slow it is. At $5/hr it would make more sense
Yup, very similar to old taxi garage prices 👍
Sounds like pre-uber yellow cab leasing rates smh
You hit the nail on the head! Great observation
Is this an Onion article? It certainly reads like one with the satirical (and considering you predicted this) force of a tragic comedy. If I were an investor in Revel (either current or prospective) why in God’s name would I believe ANYTHING that came out of the mouths of those Revel executives who pitched this idiotic W-2 employee driver business plan. Anyone who is keenly aware of this industry knows that was a bad idea. Renting vehicles at $10/hour is a godawful idea. $1680/week?!? Revel executives to investors: “But wait! We have figured out bigger and better ways to really lose your money! We’re going to gamble with this latest round of funding by making EV charging infrastructure!” Revel wants to build infrastructure, an area that Tesla has basically abandoned and Tesla needed this infrastructure more than anyone! EV inventories are piling up, so who is going to use these chargers? Hybrid sales, on the other hand, are going through the roof and that makes sense. We’ve had at least a decade of reliable performance with hybrids. No tragic stories with hybrids. EV drivers still deal with “charging anxiety” when the battery levels get low and then they have to figure out where to charge if they’re not close to their home charger, and that’s IF they have a charger at home. This plan of renting EVs will not work for Revel. It’s too expensive and you can’t take the car home. The executive team at Revel should be fired. All these guys do is come up with stupid business ideas and lobby (and possibly outright bribe) the NYC government for favorable treatment because they can not grow organically on their own. Future Revel investors beware, you’re dealing with some numb skulls here.
Think a lot of people share your perspective and you've represented that perspective well with this commentary 👏 We continue to believe their rideshare business goes under, but they do have a lot of money to throw around!
Knew this was coming
👍
More cars more cars more cars more cars and 'Congestion Pricing' for everyone the second Hochul gets reelected.
Let's see! Surprised they ditched Congestion Pricing at the last minute after all those years, hearings, politics etc. etc. Agree that it's more likely a delay vs. them abandoning it