What's Happening?
Also, a micromobility startup that spun out of Rivian last year, has secured an additional $150 million in funding. This Series D round was led by Prysm Capital, with participation from existing investors Eclipse, Greenoaks, and MVP Ventures. The new
capital will be used to accelerate the development of the company's autonomous driving technology and the simultaneous progression of multiple autonomous form factors. Also, which has raised $455 million since its founding less than two years ago, is expanding its business beyond pedal-assist electric bikes and commercial cargo quads to focus on autonomous delivery vehicles. Rivian maintains a minority stake in Also, and Rivian CEO RJ Scaringe serves on its board.
Why It's Important?
This significant funding round for Also underscores the growing investor confidence in the autonomous delivery vehicle market and the broader micromobility sector. The shift towards autonomous technology for last-mile delivery has major implications for logistics, urban planning, and environmental sustainability in the U.S. It could lead to more efficient and cost-effective delivery services, reduce traffic congestion, and lower carbon emissions. For Rivian, its continued involvement with Also highlights a strategic interest in diversifying its electric vehicle ecosystem beyond traditional trucks and SUVs, potentially leveraging shared technology and manufacturing expertise. This investment also signals a competitive landscape where startups are rapidly innovating to capture market share in emerging transportation solutions.
What's Next?
Also plans to use the newly acquired capital to intensify its research and development efforts in autonomous driving technology. This will involve developing new autonomous vehicle designs that utilize the same electric architecture as its existing products. A key partnership is already in place with DoorDash, which includes a multiyear commercial agreement to develop and deploy autonomous delivery vehicles. The company's focus on smaller-form-factor vehicles for delivery could see its technology integrated into various urban logistics operations. While Also has faced delays in shipping its e-bikes, the company is now beginning to fulfill orders, with initial deliveries of performance and standard models expected in the fall, indicating a push towards market deployment of its products.
Beyond the Headlines
The evolution of Also from electric bikes to autonomous delivery vehicles reflects a broader trend in the transportation industry towards integrated, multi-modal solutions. The backing from investors who also supported Rivian suggests a belief in a similar vertically integrated approach for smaller-scale electric vehicles. This development could accelerate the adoption of autonomous technology in urban environments, potentially transforming how goods are delivered and how cities manage their infrastructure. Ethical and regulatory considerations surrounding autonomous vehicles, such as safety, job displacement, and data privacy, will become increasingly prominent as these technologies advance. The success of companies like Also could pave the way for a future where autonomous micromobility plays a crucial role in smart city initiatives and sustainable transportation networks.
