The electric vehicle sector continues to evolve rapidly, and Rivian, a key player in the EV space, has added a new chapter to its innovation story. On March 26, 2025, Rivian announced the formal launch of its micromobility spinout, Also, a company focused on reimagining short-distance, lightweight electric transportation solutions. The announcement came with a significant boost—$105 million in Series B funding, led by Eclipse Ventures and supported by several strategic partners.
This development positions Also as a serious contender in the micromobility market, offering electric two-wheelers and compact utility vehicles designed for dense urban environments. With urban infrastructure facing growing pressure from traffic congestion, emissions concerns, and changing transportation needs, Also steps in as a solution-oriented brand with strong backing and a focused mission.
Genesis of the Spinout: Rivian’s Strategy Beyond EVs
Rivian, known for its electric trucks and SUVs, has maintained a consistent focus on sustainability and innovation. The creation of Also signals Rivian’s intention to expand beyond the premium EV market and explore new verticals aligned with its environmental mission.
The idea for Also first emerged within Rivian’s internal R&D division as engineers identified growing demand for electric micro-vehicles in cities struggling with pollution and overpopulation. The development team designed initial prototypes for urban delivery fleets and personal commuters. These early concepts received strong validation from potential customers, prompting the decision to form a separate brand.
Rivian chose to incubate the startup for over 18 months before spinning it out as an independent company. This move allows Also to function with its own business structure, leadership team, and go-to-market strategy while benefiting from Rivian’s technological expertise and supply chain advantages.
Funding and Investors: Eclipse Ventures Leads the Charge
The Series B funding round brought in $105 million, led by Silicon Valley-based Eclipse Ventures. Known for backing bold, hardware-driven startups, Eclipse identified significant potential in the micromobility space. The firm expressed confidence in Also’s mission to build durable, design-forward electric vehicles optimized for urban environments.
Eclipse’s managing partner emphasized the importance of solving mobility challenges at the local level. According to Eclipse, Also stands at the intersection of design, hardware innovation, and electric infrastructure—a combination that aligns well with future urban mobility goals.
Other investors in the round included strategic participants from the EV ecosystem, a logistics platform operator, and angel investors with experience in automotive manufacturing. The round positions Also to scale production, expand its design team, and establish regional distribution hubs in North America and Europe.
Product Line: Design Meets Functionality
Also introduced a lineup of two vehicle categories:
- Electric Compact Scooter (ECS):
Designed for short-range commuting, the ECS features a modular design, swappable batteries, and regenerative braking. Target users include urban professionals, last-mile delivery riders, and shared mobility platforms. - Urban Utility Vehicle (UUV):
A three-wheeled electric utility vehicle designed for city-based logistics operations. The UUV offers cargo modularity, autonomous driving capabilities (Level 2), and AI-powered route optimization for fleet operators.
The design team focused heavily on aesthetics, user comfort, and sustainability. Vehicles use recycled aluminum frames, biodegradable composite panels, and battery modules with advanced thermal management systems. Also’s vehicles come equipped with IoT connectivity, allowing users and fleet managers to monitor diagnostics, location, and usage analytics in real time.
The company built its products with modularity at the core—components like wheels, suspension arms, and battery packs use standardized fittings, simplifying maintenance and reducing total ownership costs.
Manufacturing Strategy and Global Expansion
Also plans to open its first manufacturing unit in Detroit, Michigan, leveraging Rivian’s proximity and supplier network. The facility will support both ECS and UUV production, with an initial capacity of 25,000 units per year.
Expansion plans include a European assembly line in Rotterdam, Netherlands, which will serve as a regional hub for Western Europe. The Rotterdam plant will operate in partnership with a local logistics provider to support deployment in cities like Amsterdam, Berlin, and Paris.
The company has signed pilot agreements with food delivery and e-commerce firms in the U.S. and Germany. These companies will deploy early production models in Q3 2025 to test performance under real-world conditions.
Leadership and Vision
Also is headed by Drew Fredrickson, a former VP of Product at Rivian with over a decade of experience in electric mobility systems. Fredrickson assembled a leadership team combining talent from industrial design, urban mobility startups, and autonomous vehicle R&D labs.
According to the leadership, the company aims to redefine how people and goods move over short distances in cities. Also doesn’t view itself as just a vehicle manufacturer but as a platform for connected, sustainable micromobility. The brand vision includes shared fleet services, AI-powered route planning tools, and real-time traffic optimization through partnerships with city governments.
The leadership is placing a strong emphasis on community integration. Future products will undergo public trials in collaboration with urban planners and civic transportation authorities to ensure infrastructure readiness and citizen feedback incorporation.
Market Opportunity and Competitive Landscape
The global micromobility market is projected to reach $200 billion by 2030, driven by increasing urbanization, tighter emission regulations, and consumer demand for flexible mobility solutions. Segments such as electric scooters, bikes, and cargo trikes are expected to grow the fastest.
Also enters a competitive space, facing players like Bird, Lime, Ola Electric, and Segway-Ninebot. However, most of these brands target the consumer segment. Also is strategically focusing on fleet-based, B2B-driven deployments with superior vehicle durability and lower cost-per-mile metrics.
Its ability to integrate vehicle hardware with predictive software, optimize fleet operations through AI, and leverage Rivian’s EV manufacturing insights provides a significant competitive edge.
Challenges Ahead
Despite the funding and momentum, Also must navigate several challenges:
- Infrastructure Limitations: Many cities lack adequate charging infrastructure or regulatory frameworks for micromobility fleet operation.
- Unit Economics: Achieving profitability at scale in shared and fleet-based models remains difficult in price-sensitive markets.
- Logistics and Servicing: Maintaining a distributed fleet requires a strong service network, which Also must build from scratch.
- Regulatory Compliance: Differing rules around electric two- and three-wheelers across cities and countries could slow expansion.
The company plans to address these challenges by partnering with local governments and infrastructure providers early in the deployment cycle.
Conclusion
Also’s launch represents a significant moment in the evolution of urban mobility. With a $105 million Series B funding round, a unique product vision, and Rivian’s backing, the company is well-positioned to disrupt the micromobility space. By targeting fleet-based electrification and combining design with AI and modular engineering, Also offers a differentiated approach to solving urban transportation challenges.
If executed effectively, Also has the potential to become a category leader in sustainable short-distance mobility—reshaping how people and goods move within the world’s busiest cities.