Rivian spinout Also raises $150M
· outdoors
Rivian’s Autonomous Shadow: Also Raises $150M, Expands Ambitions
Rivian’s spinout, Also, has secured another $150 million in funding, solidifying its position as a leader in autonomous delivery vehicles. This latest investment underscores the growing importance of electric and autonomous transportation in the industry.
A Tale of Two Companies
Also was founded by RJ Scaringe, Rivian’s CEO, as an internal project within the automaker. Initially focused on micromobility – smaller, lighter electric vehicles – the company has since evolved into a standalone startup with significant backing from investors like Prysm Capital. Prysm’s co-founder Jay Park notes that Also’s potential is reminiscent of Rivian’s own early promise: “we saw the value in beautifully designed, vertically integrated electric trucks and now we see it in smaller-form-factor vehicles.” This echoes Rivian’s commitment to sustainability and sleek designs.
A New Path Forward
Also’s pivot towards autonomous delivery vehicles raises questions about the future of transportation. Major players like Amazon are already investing heavily in this space, and autonomous tech will play a crucial role in shifting towards cleaner mobility. However, Also must balance innovation with commercial viability as it accelerates development. The company has leveraged Rivian’s technology and economies of scale to make significant progress – but can it maintain momentum in the face of stiff competition?
The close ties between Also and its parent company raise further questions about independence. While Rivian holds a minority stake, Scaringe serves on the board, creating a complex web of relationships. This may ultimately benefit or hinder Also’s growth, with implications for the broader industry.
A Cautionary Tale
As Also navigates the micromobility landscape, it would do well to heed the lessons of Rivian’s struggles. The e-bike launch was delayed due to production issues, highlighting the challenges of scaling up production while maintaining quality and meeting customer demand. Will Also avoid similar pitfalls as it ramps up production of its own range of vehicles?
The fresh funding will undoubtedly accelerate development but also raises concerns about the industry’s focus on autonomous tech at the expense of more traditional mobility solutions. As Also pushes forward with its plans for smaller-form-factor vehicles, what does this mean for urban transportation – and who will benefit from these developments? With $455 million in funding since inception, Also is well-positioned to shape the course of micromobility.
The Road Ahead
Also’s latest funding round marks a significant milestone in its journey towards autonomous leadership. As it accelerates development and expands its product line, the company must balance innovation with commercial viability and navigate the complex web of relationships between itself and Rivian. The future of micromobility hangs in the balance – only time will tell whether Also’s vision for smaller-form-factor vehicles becomes a reality or remains an ambitious promise.
Reader Views
- JHJess H. · thru-hiker
While Also's pivot towards autonomous delivery vehicles is certainly exciting, I'm worried that they're overextending themselves by trying to replicate Rivian's early success with smaller-form-factor vehicles. It's one thing to leverage technology and economies of scale from their parent company, but true innovation requires taking calculated risks, not just repackaging existing ideas. The pressure to maintain momentum in a crowded market will be immense, and Also needs to demonstrate that they can innovate on their own terms, not just as an extension of Rivian's brand.
- TTThe Trail Desk · editorial
The also-too-often-misleading label of "spinout" obscures Also's true nature: a Rivian offspring with its own distinct ambitions and challenges. While the $150 million infusion is undeniably impressive, it's equally significant to recognize that this cash injection is largely courtesy of existing investors who've been closely tied to Rivian since its inception. This incestuous dynamic may foster an innovative spirit, but it also raises questions about Also's long-term viability as a standalone entity, and the potential risks of getting too cozy with one's parent company.
- MTMarko T. · expedition guide
While Also's autonomous delivery ambitions are exciting, we can't ignore the elephant in the room: scalability. Rivian's economies of scale are a double-edged sword – they've helped Also gain traction but also raise questions about how independent this spinout truly is. As the industry hurtles towards electrification and autonomy, it's imperative that startups like Also prioritize genuine innovation over leveraging their parent company's resources. Otherwise, we risk stifling competition and innovation in favor of incremental progress.