U.S. automakers have abandoned small cars—but Rivian just announced a spinoff to make mini EVs

Today, the California-based EV maker Rivian announced a new spinoff company, Also Inc., that will focus on building “small, lightweight” EVs. The new company, billed as a “micromobility startup,” is set to be headed by president Chris Yu, Rivian’s former VP of future programs. According to a press release, Rivian will own “a substantial minority ownership stake in Also,” and Rivian CEO RJ Scaringe will chair the new company’s board of directors. The startup also announced an initial investment of $105 million from the venture capital firm Eclipse. While Also hasn’t officially announced the products it plans to debut, Yu told the publication Transport Topics that its technology platform—which has been in the works at Rivian for several years—will be applicable to e-bikes and smaller three- and four-wheel vehicles, like neighborhood EVs and micro cars. The company plans to announce its flagship product this fall and begin deliveries in the U.S. in 2026, followed by future expansions into Europe, Asia, and South America. A growing demand for micromobility options For Rivian and Also, the push to expand EV options in the micromobility space makes sense, given the market’s recent expansion. In November 2024, a McKinsey & Company study found that U.S. shared micromobility trips (meaning rides on services like rentable bikes and e-scooters) are expected to double by 2035 at the very least, as many cities begin to implement more regulations around car usage. Further, a McKinsey consumer survey of more than 4,000 respondents found that “24% regularly use micromobility (at least once a week), and 30% plan to increase their usage in the future.” The trend of increasingly bulky cars—dubbed “car bloat” by Fast Company contributor David Zipper—means that smaller cars, like sedans and station wagons, are being phased out. Instead, carmakers—particularly Detroit’s Big Three—are prioritizing SUVs and pickups, which offer larger margins. The literally increasing size of the market means that there’s an opportunity for competitors who can offer smaller forms of transportation, letting consumers bypass the disadvantages of navigating and parking a hulking vehicle in urban areas. This thesis seems to be one of Also’s guiding principles. In an interview with InsideEVs, Yu shared that Also’s mini EV offerings are meant to address a growing demand for small vehicles that can navigate dense urban areas with less hassle. “I think there’s this pent-up demand, even if it may not be explicitly known, to do better than sitting in traffic and battling for car spaces for short trip missions, like going to Trader Joe’s, doing a kid drop-off, etc.,” Yu said. In order to compel consumers to choose an EV over a gas-powered alternative, like a standard golf cart, for example, Yu clarified to Transport Topics that Also will aim to offer competitive prices and a more personalized brand experience. An uncertain climate for EVs Also is debuting in the midst of an uncertain environment for EV manufacturers. After taking office in January, President Trump has threatened to take away tax credits for EVs and issued a directive that puts a pause on the construction of new national EV charging infrastructure. Meanwhile, the decline of Elon Musk’s Tesla has caused some experts to worry that the rest of the industry could face ripple effects from a barrage of bad press around EVs. Still, back in February. Scaringe assured Fast Company that Rivian (and, now, presumably Also) isn’t basing its future development plans on current policy. Instead, he said, the company views its decisions on a “much more long-term basis.” “The product roadmap we built, the technology we’ve developed, the way we’re designing and building and growing the businesses, is really being architected around a long-term view that the market will move over time to 100% electric,” Scaringe said at the time.

Mar 26, 2025 - 19:55

U.S. automakers have abandoned small cars—but Rivian just announced a spinoff to make mini EVs

Today, the California-based EV maker Rivian announced a new spinoff company, Also Inc., that will focus on building “small, lightweight” EVs.

The new company, billed as a “micromobility startup,” is set to be headed by president Chris Yu, Rivian’s former VP of future programs. According to a press release, Rivian will own “a substantial minority ownership stake in Also,” and Rivian CEO RJ Scaringe will chair the new company’s board of directors. The startup also announced an initial investment of $105 million from the venture capital firm Eclipse.

While Also hasn’t officially announced the products it plans to debut, Yu told the publication Transport Topics that its technology platform—which has been in the works at Rivian for several years—will be applicable to e-bikes and smaller three- and four-wheel vehicles, like neighborhood EVs and micro cars. The company plans to announce its flagship product this fall and begin deliveries in the U.S. in 2026, followed by future expansions into Europe, Asia, and South America.

A growing demand for micromobility options

For Rivian and Also, the push to expand EV options in the micromobility space makes sense, given the market’s recent expansion. In November 2024, a McKinsey & Company study found that U.S. shared micromobility trips (meaning rides on services like rentable bikes and e-scooters) are expected to double by 2035 at the very least, as many cities begin to implement more regulations around car usage. Further, a McKinsey consumer survey of more than 4,000 respondents found that “24% regularly use micromobility (at least once a week), and 30% plan to increase their usage in the future.”

The trend of increasingly bulky cars—dubbed “car bloat” by Fast Company contributor David Zipper—means that smaller cars, like sedans and station wagons, are being phased out. Instead, carmakers—particularly Detroit’s Big Three—are prioritizing SUVs and pickups, which offer larger margins. The literally increasing size of the market means that there’s an opportunity for competitors who can offer smaller forms of transportation, letting consumers bypass the disadvantages of navigating and parking a hulking vehicle in urban areas.

This thesis seems to be one of Also’s guiding principles. In an interview with InsideEVs, Yu shared that Also’s mini EV offerings are meant to address a growing demand for small vehicles that can navigate dense urban areas with less hassle.

“I think there’s this pent-up demand, even if it may not be explicitly known, to do better than sitting in traffic and battling for car spaces for short trip missions, like going to Trader Joe’s, doing a kid drop-off, etc.,” Yu said.

In order to compel consumers to choose an EV over a gas-powered alternative, like a standard golf cart, for example, Yu clarified to Transport Topics that Also will aim to offer competitive prices and a more personalized brand experience.

An uncertain climate for EVs

Also is debuting in the midst of an uncertain environment for EV manufacturers. After taking office in January, President Trump has threatened to take away tax credits for EVs and issued a directive that puts a pause on the construction of new national EV charging infrastructure. Meanwhile, the decline of Elon Musk’s Tesla has caused some experts to worry that the rest of the industry could face ripple effects from a barrage of bad press around EVs.

Still, back in February. Scaringe assured Fast Company that Rivian (and, now, presumably Also) isn’t basing its future development plans on current policy. Instead, he said, the company views its decisions on a “much more long-term basis.”

“The product roadmap we built, the technology we’ve developed, the way we’re designing and building and growing the businesses, is really being architected around a long-term view that the market will move over time to 100% electric,” Scaringe said at the time.