The Shift in American Mobility Startups: From Consumer Services to Infrastructure & Ecosystem Support
The initial wave of American mobility startups, focused on disruptive consumer-facing services like ride-sharing and autonomous vehicles, is evolving. Facing challenges in areas like regulation, safety, infrastructure investment, and profitability, these companies are increasingly pivoting towards building the underlying infrastructure and software that supports mobility, rather than directly providing it. This shift is fueled by substantial public and private investment, with multibillion-dollar subsidy schemes bolstering network advancement and venture capital funding expanding the reach of private charging companies and startups.
A prime example of this trend is “It’s Electric,” a new york-based startup. Recognizing the infrastructure gap in urban areas – specifically the lack of charging options for residents without dedicated garages – the company installs small EV chargers on sidewalks in front of homes and stores. Their business model incentivizes building owners by offering several thousand dollars in annual revenue in exchange for supplying the electricity.The company has secured investment from companies like Uber, demonstrating the appeal of solutions addressing basic infrastructure needs.
Globally, over 1,000 EV charging infrastructure startups are active, concentrated in the united States, India, and Europe. New York and San Francisco are emerging as key hubs for this activity. Notably, US-based startups are demonstrating particular strength in leveraging software and data to optimize existing infrastructure. This includes dynamic pricing for charging stations, scheduling solutions for fleet vehicles, and integrating charging demand with the power grid through virtual power plant technologies.
The micromobility sector is also undergoing a similar transformation. As investment slows and demand remains high, startups are moving away from directly operating large fleets of shared scooters and bikes. Instead, they are focusing on niche, business-to-business (B2B) applications. This includes providing “mobility-as-a-service” solutions for corporate campuses, factories, and tourist facilities, as well as offering electric bikes and battery swap stations to delivery businesses.
This overall trend indicates a fundamental shift in the American mobility startup landscape. The focus is moving away from directly transporting people and towards the infrastructure,software,and strategic partnerships with governments and large corporations that enable efficient and sustainable transportation systems.
This evolution represents a move beyond the initial ambition of creating a “transportation revolution with a single app.” Startups are now confronting the practical realities of regulation, safety, infrastructure limitations, and the need for profitability. Consequently,innovation is expanding to encompass the “redesign of the entire ecosystem” – including infrastructure,software,and governance – rather than solely focusing on the vehicle itself.
For countries like Japan, this shift highlights the importance of a holistic approach to mobility, encompassing investment in urban infrastructure, power systems, and proactive engagement with regulatory frameworks, rather than simply replicating app-based or vehicle-centric models. the current trajectory of American mobility startups offers valuable insights for shaping future mobility policies and business strategies.
