The seemingly modest $3,500 e-bike from Also, a Palo Alto-based startup, represents a far more ambitious play than its sleek design suggests. This week, the company announced a $150 million Series D funding round, led by Prysm Capital with participation from Eclipse Capital and Greenoaks, catapulting its valuation past $1 billion. This valuation points to an underlying strategy that positions the e-bike not as a standalone product, but as the initial, visible iteration of a broader technological platform aimed squarely at disrupting the landscape of urban transportation.
Chris Yu, the company’s founder, emphasizes that Also is developing a comprehensive small-vehicle technology platform. This includes in-house motors, batteries, compute systems, and proprietary software, all designed to be adaptable. While the first application is a consumer e-bike, the TM-B, the architecture is engineered for deployment across a spectrum of vehicles smaller than a car. This vision extends to commercial electric delivery quads, such as their TM-Q model, and ultimately, fully autonomous vehicles capable of moving both goods and passengers. The company’s origins are notable, having spun out of Rivian in early 2025 as a stealth project, with Rivian founder RJ Scaringe remaining as chairman for both entities.
The influx of capital is specifically earmarked to accelerate Also’s autonomous vehicle platform. This involves the simultaneous development of multiple hardware projects, leveraging the same foundational EV architecture currently powering their existing consumer and commercial offerings. Yu articulated a clear rationale for this focus, explaining that using a 7,000-pound van or SUV for short, single-passenger trips or small deliveries is inherently inefficient. He believes that within five years, small-form-factor autonomy will become a standard, unremarkable component of the transportation mix, complementing self-driving cars rather than replacing them entirely.
This significant investment arrives during a turbulent period for the broader e-bike market, a category with which Also is often associated. Recent bankruptcies, like those of Rad Power Bikes and Juiced Bikes, and Porsche’s quiet exit from the segment, have led some observers, such as micromobility skeptic David Zipper, to suggest saturation. However, the global micromobility market, encompassing e-bikes, e-scooters, and small delivery EVs, remains substantial at an estimated $50 billion and is projected to more than double by the early 2030s. Yu, a former Specialized bike product chief with an aerospace background, counters the notion of market saturation, arguing that the challenges lie in product execution—specifically, unreliable batteries and inadequate anti-theft solutions—rather than a lack of underlying demand.
Beyond the consumer e-bike, Also’s commercial strategy reveals its long-term ambitions. Existing partnerships, including one with Amazon and a multi-year commercial agreement with DoorDash, signal a move towards robotic solutions built on the same core technology as their consumer products. Yu’s argument is compelling: dense urban environments stand to benefit significantly from purpose-built, smaller electric vehicles. Rivian, which remains a major non-controlling shareholder, also plays a strategic role. Its growing fleet of on-road vehicles generates crucial driving data that Also will eventually require to train its own autonomy systems. Jay Park, who led the latest round for Prysm, drew a direct parallel to their initial investment in Rivian, citing the potential of “wonderfully designed, vertically integrated electric trucks, vans, and SUVs,” and seeing Also apply that same ethos to smaller form factors for both commercial and consumer applications. In essence, the e-bike, for Also, was never the ultimate business model but a strategic entry point into a much larger vision.
