Move Over Tesla: The Future Is E-Bikes You Can’t Afford and Don’t Need

Also Inc., the suspiciously well-funded micromobility startup nobody asked for, has raised yet another $200 million—this time from Greenoaks Capital—to chase its dream of building fancy e-bikes and micro-EVs, as if the world hasn’t already been flooded with enough two-wheeled tech experiments.

The latest injection of cash brings Also’s valuation to a head-scratching $1 billion, a figure that seems more fitting for a generative AI unicorn than a bicycle manufacturer with a designer label.

Originally conceived as a hush-hush internal team at Rivian in 2022 under the ominous name “Project Inder,” the company was quietly brewing up a future in micromobility while Rivian tried to figure out how to mass-produce electric trucks without hemorrhaging cash.

Earlier this year, Also spun off from Rivian with a $105 million kickstart from Eclipse Ventures—because nothing screams “game-changing innovation” like swapping four wheels for two and slapping on a luxury design tag.

In case anyone thought this was just another Silicon Valley fever dream, Also reportedly enlisted Jony Ive’s LoveFrom to sprinkle some Apple fairy dust on their e-bike design. Yes, that Jony Ive—the man who made your iPhone look like a piece of minimalist sculpture—apparently now has opinions on handlebars and pedals.

According to Bloomberg, this latest $200 million round is intended to help the startup push forward with its “micro-EVs of all shapes and sizes,” though no one has actually seen a single product yet.

The startup has yet to reveal any design, prototype, or even a mildly blurry concept rendering, but promises to show off its first designs “later this year.” Presumably, those designs will be as sleek and overthought as a $7,000 iPad stand.

Also’s billionaire valuation arrives at a time when investors seem to be throwing cash at anything with wheels and a battery, regardless of whether the market needs it. The micromobility space is littered with the corpses of once-hopeful startups—Bird, Lime, and countless e-scooter schemes that turned sidewalks into obstacle courses—yet optimism apparently springs eternal.

In 2023, global e-bike sales surpassed 40 million units, with China continuing to dominate the market. The U.S., on the other hand, is still figuring out how to convince people that biking isn’t just for weekend hobbyists and food delivery workers. But sure, let’s bet $1 billion that the next revolution in transportation is a slightly more elegant electric bicycle.

Investors seem undeterred by this awkward reality. Greenoaks Capital, known for betting big on tech unicorns, is clearly banking on Also’s “premium” approach and its Rivian pedigree to carve out a new niche. A very, very expensive niche.

Neither Rivian nor Also could be bothered to comment on their latest financial alchemy, perhaps too busy polishing spokes or tweaking typefaces on bike frames. Or maybe they’re just watching the valuation ticker rise and having a good laugh.

Meanwhile, real-world consumers are still waiting for affordable, reliable e-bikes that don’t break after six months or cost more than used cars. But who cares about practicality when there’s venture capital to burn?

So while the rest of us continue dodging rental scooters and wondering when autonomous vehicles will actually work, Silicon Valley has made its next move: billion-dollar bicycles, now with extra pretension.

Welcome to the future. It’s lightweight, battery-powered, and somehow costs as much as your first car.