RSG245: All Electric, All Employee Rideshare with Revel CEO Frank Reig

Join Harry as he speaks with Frank Reig, founder and co-owner of Revel Electric Rideshare.

You’ll walk away knowing how electric vehicles pave the way for rideshare drivers. 

Specifically, Revel runs a unique business model that benefits rideshare drivers tired of taking on all the risk themselves by offering a W-2 opportunity. 

Listen to why this business model changes how rideshare drivers work in major cities like NYC and San Francisco.

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Quick Takeaways

  • Frank Reig breaks down what Revel is and how it operates.
    • He discusses not only Revel’s business model and how they make money but also how rideshare drivers in large cities like NYC and San Francisco can benefit from this model.
  • Revel went from a moped-sharing service to an electric rideshare service that hires employees as W-2 drivers.
  • Revel pivoted their business model in 2020 and has grown ever since.
  • The Revel driver model takes the risk off drivers who drive for Uber or Lyft.
    • Drivers don’t need their own car.
    • They also don’t need insurance and gas or have to cover any other expenses.
    • They show up to work, drive, and go home.
  • The average Revel driver makes $24 to $26 an hour, including tips.
    • Revel drivers make a per-hour fee and, like Uber or Lyft, keep 100% of the tips earned.
  • Revel benefits from this model by maximizing the use of electricity while giving drivers a chance to earn money.
    • Uber and Lyft drivers in NYC have to work 60+ hours a week to turn a profit after all the expenses.
    • Revel drivers don’t have that problem and can work as many or as few hours as they want.
  • Because Revel drivers are W-2 employees, they get perks like PTO, sick days, insurance, and unemployment benefits.
  • There are downsides for Revel:
    • They can’t operate in all cities, only those with the infrastructure for charging stations and high demand for trips.
  • Revel’s prices are similar to Uber X and Lyft; they don’t charge Uber Black prices.
  • Most drivers drive Tesla 3s or Ys, but they have introduced the Kia Niro.
    • The Kia Niro mostly goes to drivers who drive for Revel 50+ hours a week and take the car home versus coming to the depot to pick up the car.
  • The normal operation for drivers is to come to one of their three depots (soon to be four with a new one in Queens), pick up the car, drive for the day and return it.
    • Most Revel cars do 100 hours a week
    • Because EVs have lower maintenance costs, this business model works

Watch RSG245 On YouTube

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