Rivian's Micromobility Gambit: How Also Inc. Could Drive Value Across the Ecosystem

The automotive sector's shift toward electrification has birthed a fascinating offshoot: micromobility. Once a niche category, it's now a battleground for companies like Rivian, whose recent spinoff Also, Inc. aims to redefine urban transportation. By carving out a standalone entity focused on lightweight electric vehicles (LEVs), Rivian has positioned itself not just as an EV disruptor but as an ecosystem architect. This strategic move has profound implications for both the micromobility market and Rivian's valuation.

The Micromobility Opportunity: A Green, Gridlocked Urban Future

Micromobility—think e-scooters, e-bikes, and cargo bikes—isn't just a fad. It's a response to two existential challenges: urban congestion and carbon emissions. According to the International Energy Agency, short trips (under six miles) account for 40% of urban vehicle journeys, yet they're often made in cars. LEVs, with their compact design and zero emissions, offer a cleaner alternative. By 2030, the global micromobility market is projected to reach $150 billion, driven by regulatory tailwinds like the U.S. Inflation Reduction Act's EV incentives and Europe's stricter emissions standards.

Also, Inc.: Rivian's Bold Leap into Micromobility

Launched in March 2025 as a spinoff from Rivian's stealth program, Also, Inc. is a lean startup with a clear mission: “reinvent the wheel” by combining Rivian's expertise in electric powertrains and software with a startup's agility. Key strategic pillars include:
1. Vertical Integration: Developing motors, batteries, and software in-house to control costs and innovation.
2. Domestic Manufacturing: Building in the U.S. to avoid tariffs on Chinese imports, a critical edge given trade tensions.
3. Affordability: Targeting price points below $2,000 for consumer models—a stark contrast to rivals like Peloton's $3,000+ e-bikes.
4. Diverse Applications: From commuter bikes to cargo vehicles for last-mile delivery, Also aims to capture both B2C and B2B markets.

The company's first product, expected in late 2025, is a “seat, two wheels, a screen, and computers with a battery”—likely an e-bike or scooter. Its modular design could allow users to customize features via software updates, a hallmark of Rivian's DNA.

Why This Matters for Rivian's Valuation

Spinoffs often unlock value by allowing parent companies to focus on core operations while monetizing niche opportunities. For Rivian, the benefits are twofold:
1. Ecosystem Synergy: Also's products could be sold through Rivian's retail network, boosting cross-selling opportunities. Imagine pairing an R1T truck with an Also e-bike for suburban families—“transportation layers” that cater to different needs.
2. De-Risking Innovation: Micromobility's R&D costs are lower than those for full-size EVs, and the market's faster product cycles mean Also can iterate quickly. Success here could validate Rivian's broader tech stack, indirectly boosting investor confidence in its core vehicle lineup.

Risks and Considerations

• Competition: Chinese firms like Ninebot (owning Segway) dominate the global micromobility market, but Also's U.S. manufacturing and pricing strategy could carve a niche.
• Execution: Delivering a compelling product in 2026 will be critical. Delays or underwhelming specs could hurt Rivian's reputation.
• Valuation Overshadowing: If Also's success attracts attention away from Rivian's core vehicles, investors might penalize the parent stock.

Investment Implications: A Two-Pronged Play

For investors, Rivian's stock (RIVN) now offers exposure to two growth engines:
1. Core Automotive: The upcoming R2 SUV (2026) targets a broader market, while the R1 lineup gains momentum.
2. Micromobility Upside: Also's potential to scale into a $1B+ business could justify a revaluation of Rivian's ecosystem.

Final Analysis: A Risky, but Strategic Bet

Also, Inc. is a calculated risk—a moonshot that leverages Rivian's strengths while minimizing downside. For investors, the trade-off is clear:
- Buy RIVN if you believe in its dual-pronged strategy and execution. A successful Also launch could catalyze a rerating, especially if the spinoff achieves profitability ahead of expectations.
- Wait on the sidelines if you're skeptical about micromobility's scalability or Rivian's ability to manage two complex ventures simultaneously.

In a sector where innovation is king, Rivian's micromobility play isn't just a side project—it's a testament to the company's ambition to dominate the EV ecosystem, one wheel at a time.