On March 26, 2025, Rivian Automotive Inc. (NASDAQ: RIVN) announced a significant strategic pivot by spinning out its micromobility business into a newly formed company named Also, Inc. This move aims to address the increasing global demand for small, lightweight electric vehicles that contribute to the sustainable transformation of transportation systems worldwide.

2. Understanding the Spin-Out

Rivian's foray into micromobility began several years ago as a stealth program, focusing on leveraging its expertise in software, electronics, and electric propulsion. The company recognized a burgeoning need for innovative transportation solutions that could facilitate a sustainable transition for urban mobility. As the initial efforts gained traction, it became evident that Rivian's micromobility initiatives had the potential to thrive independently, justifying the creation of Also, Inc.

The Vision Behind Also, Inc.

The newly-established company will concentrate on producing small electric vehicles specifically designed to tackle modern mobility challenges. Rivian Founder and CEO RJ Scaringe emphasized the importance of diversifying vehicle types to achieve a comprehensive transition to electrified transportation. He expressed his enthusiasm for the innovations that the Also team is developing, stating that these advancements will lead to compelling micromobility products that could redefine transportation categories.

3. Rivian's Continued Involvement

Despite the spin-off, Rivian retains a substantial minority ownership stake in Also, Inc. This relationship is expected to foster future collaborations between the two companies, possibly utilizing Rivian's retail footprint to support Also's market presence. The partnership reflects Rivian's commitment to engaging in synergistic ventures that promote sustainable transportation solutions.

Financial Backing for Growth

As part of its launch strategy, Also, Inc. has secured a notable investment of $105 million from Eclipse Ventures, a venture capital fund committed to supporting innovative technologies. This infusion of capital will enable Also to accelerate its growth trajectory and further develop its product offerings in the competitive micromobility space.

4. Rivian's Core Business Focus

While Rivian embarks on this new venture, it remains dedicated to its core business of electric vehicle manufacturing. The company is making significant strides towards the launch of its highly anticipated R2 midsize SUV, which is scheduled for customer deliveries in the first half of 2026. This commitment to expanding its vehicle lineup ensures that Rivian continues to innovate within the electric vehicle market.

5. Looking Ahead

Both Rivian and Also, Inc. are poised for exciting developments in the coming months. Rivian's ongoing efforts to deliver the R2 SUV, alongside Also's ambitions in the micromobility sector, signal a dynamic transition within the automotive landscape. As Rivian emphasizes its mission of accelerating the global shift towards zero-emission transportation, stakeholders and analysts will be closely monitoring how these two entities evolve and collaborate in the future.

In conclusion, the spin-off of Rivian's micromobility business into Also, Inc. not only reflects strategic foresight but also aligns with the increasing demand for sustainable transport solutions. With robust backing and a clear vision, Also is set to make a significant impact in the burgeoning micromobility market while Rivian strengthens its foothold in the electric vehicle industry.

Original press release