Regulation Has Been Blocked, Revel Launches Electric Taxi In New York

Revel can finally launch an electric taxi in New York. (photo: doc. revel)

JAKARTA - Controversial scooter startup Revel plans to launch a fleet of Tesla taxis in Manhattan next week, after a fierce battle with New York city regulators.

The service will launch next Monday, July 2 and provide rides on 50 Tesla Model Ys in Manhattan south of 42nd Street.

Revel, everywhere that drew controversy last year after a trio of fatal crashes in New York, is now able to launch the service due to a clear change by the New York Taxi and Limousine Commission (TLC).

Revel first announced plans for Tesla's taxi fleet in April under a city limit exemption for rental vehicles that would allow for new licenses for electric taxis.

However, on June 22, TLC screwed up the company's plans when it issued an emergency rule change that removed the exception. It's a move that has baffled observers including Tesla CEO Elon Musk.

But because Revel originally submitted Tesla's cab documents for TLC approval in March — months before the rules changed, TLC finally decided to approve the company's plan.

"The truth is we don't know if this license will be approved by TLC," a Revel spokesperson told The Post.

In a statement to The Post, TLC spokesman Allan Fromberg said Revel currently operates 15 cars as they submit and complete applications before the June 22 Commission Meeting and vote.

When asked if TLC's response that they would have 50 cars on the road within three weeks was accurate, Fromberg kept silent. "TLC cannot comment on ongoing applications," Fromberg said.

Revel CEO Frank Reig clashed with TLC in June, which accused the agency of protecting Uber and Lyft's control of ride-sharing in New York by imposing an electric vehicle cap. But in Monday's announcement, Reig changed the tone.

"We would like to thank Commissioner Jarmoszuk and TLC for supporting New York City's clean climate goals, and working with us to deliver the city's first all-employee-driven electric fleet," he said.

Reig said demand for Revel's service had soared amid exorbitant ride-sharing increases and a dire shortage of taxis, with 50,000 New Yorkers on a waiting list to use the service.

"As of Monday morning, 49 of the 50 Tesla Model Y Revels had received the plates, and at least 15 had passed the inspection," a Revel spokesperson said. Vehicles will be charged at the Bed-Stuy Revel charging facility, which the company opened in June.

Revel expects at least 15 Teslas to be operational next Monday and all 50 to be on the streets within three weeks. The company says its Tesla taxi service, which uses full-time workers rather than contractors. It is intended to be an ethical and environmentally friendly competitor to Uber and Lyft, both of which have tens of thousands of cars on the road every day.

If Revel wants to upgrade, the company will surely experience the TLC electric vehicle restrictions imposed in June. TLC Aloysee chairman Heredia Jarmoszuk said Revel could put more electric rideshare vehicles on the streets if they bought gas-fueled vehicles, discontinued them and replaced them with Teslas, a suggestion Reig denies as "a definition that limits market competition."

"The plan is always to launch with a fleet of 50 cars," said a Revel spokesman. “Any expansion will require working with TLC.”