Rivian, the electric vehicle (EV) manufacturer, has announced the creation of a new micromobility company called Also, which will focus on the development and production of lightweight electric vehicles like bikes and scooters. The deal includes $105 million in Series B funding from venture capital firm Eclipse.

According to Rivian Founder and CEO RJ Scaringe, the company recognized a "massive need" for smaller, lightweight electric vehicles, leading to the creation of a "stealth program" focused on micromobility several years ago. Although Rivian's interest in e-bikes was not entirely secret, with Scaringe discussing "multimodal" transportation, including e-bikes, on stage at Tech Disrupt in 2023, the company has now formalized its efforts with the creation of Also.

Rivian will retain a "substantial minority ownership stake" in Also, and expects to feature the company's products at its own retail locations in the future. Scaringe will serve as chair of Also's board of directors. The move marks a significant expansion of Rivian's product lineup, which currently includes the R1S SUV and R1T truck, as well as the upcoming R2 and R3 vehicles.

The e-bike industry has faced challenges in recent years, with brands like VanMoof filing for bankruptcy and Rad Power Bikes experiencing executive turnover. Despite this, car manufacturers have continued to explore the market, with companies like Porsche, Mercedes, Jeep, GM, and Hummer all investing in e-bikes. However, none have yet to achieve significant success.

Rivian's move into the micromobility space could be a game-changer for the industry, given the company's outdoor, adventure-themed image and its existing customer base. With Also, Rivian is poised to offer a more affordable and environmentally friendly alternative to its larger EVs, which could appeal to a wider range of consumers.

The creation of Also also highlights the growing trend towards micromobility, as cities and consumers increasingly seek out more sustainable and efficient transportation options. With its focus on lightweight electric vehicles, Also is well-positioned to capitalize on this trend and make a significant impact in the industry.

For more information on Rivian's e-bike plans, readers can check out a thorough rundown in TechCrunch. As the micromobility market continues to evolve, it will be interesting to see how Also and Rivian navigate this new space and what innovations they bring to the table.