It is often the case that start-ups lead the way to commercializing new products, processes, and technology. New Directions has been talking about the short distance driving market as a major opportunity for an order of magnitude increase in the market for low speed vehicles (LSVs).
For golf car-type (GCT) vehicle manufacturers, both domestic and foreign, pushing into this market requires the ability to combine and exploit three essential factors:
- On the technology side, autonomous driving systems, satellite-based geofencing, and …
- Enhanced product design to incorporate full weatherization; and
- Developing a sales and market development team to open up the market for LSVs and energize its growth.
There may be some objection to the need for autonomous driving technology, but its adoption as the next stage upgrade brings with it safety features that will greatly help to convince public officials that LSVs are fit for full access to local road networks.
Basis for identifying the short distance driving (SDD) market
In other columns, New Directions has pointed out that, based on Department of Transportation data, well over 70% of all driving miles are within the range of 5-7 miles from the point of origin. In terms of number of trips, SDD excursions are enormously greater than trips beyond this range.
Presently, of course, these short trips are predominantly undertaken with conventional automobiles. It should be noted that for very short trips, e-bikes and scooters are playing a major role in the emobility universe. They lack, however, key factors that limit their usefulness; e.g., storage space, protection against the elements, and various safety features. And they are, for the most part single rider/operator.
Aspects that could limit entry into the SDD market
LSV manufacturing is currently populated by three historically dominant companies and a host of newcomers over the past three-to-four years that have taken advantage of low-cost Chinese partial assemblies. In addition, there are others that have had on-going operations for quite some time, such as Tomberlin and StarEV.
- Legacy markets which tie down manufacturing resources and are difficult to give up for strategic reasons that are historically driven;
- Sales and marketing teams which are focused on these legacy markets;
- Servicing and warranties, which are also geared toward historical experience.
Such hindrances are quite common as industries and markets evolve. What was relatively secure and at least understandable becomes unstable and unpredictable. The lure of expansion and higher profits may not be sufficient to move companies to take action. Into such situations, startups come out of the woodwork to lead the way.
Rivian spin-off, Also, has the ingredients to exploit the SDD sector
As an example where a startup could emerge to take advantage of the SDD market is the recent spinoff from electric truck manufacturer Rivian. The spinoff is “Also”, which has secured $105 million in initial financing from venture capital firm, Eclipse Ventures.
In an article appearing in the web-based newsletter, TechCrunch, Jiten Behl, former growth officer for Rivian and member of the Also team, is quoted as saying, “There is a gap here, If you look at our cities, the infrastructure is such that you can’t have large cars driving around, but they still have mobility needs. We need something different, something smaller, something more flexible.” See the full article at https://techcrunch.com/2025/03/26/rivian-spins-out-a-new-micromobility-startup-called-also-with-105m-from-eclipse/
At the moment there is much speculation that Also’s first product will be an ebike, in which Also’s derivative technology and manufacturing expertise from Rivian would put the company in the micromobility sector with key advantages over competitors.
The problem with this idea is that the ebike market is quite competitive and quite risky. Various micromobility companies have shown slumping revenues and in more than one case, bankruptcy. The issues have not been so much the technology or fleet management, but rather safety concerns and regulatory obstacles, so related.
One obvious problem with ebikes is that they are not suitable for most of the adult population of a city or suburb. The grocery store or 7-11 may be only blocks away, but you are not going to use a two-wheeled ebike to fetch canned goods, bread, and bottled water, as well as other bulky and weighty items. Further, in no way does an ebike accommodate the handicapped.
Thus, the “gap” of which Jiten Behl spoke, is unlikely to be filled by ebikes. It should be noted that this does not suggest there is no market for ebikes. Despite the issues alluded to, there clearly is a market in younger-aged segment of urban residents.
Also’s product entry may surprise analysts
Despite the ebike speculation, Also management is being quite circumspect on the actual product that will be unveiled later this year or in 2026. It is quite possible in the opinion of New Directions that the company could introduce a freshly designed type of LSV. Such a vehicle would certainly “fill the gap”. If Also took this strategic direction, it would be the first serious entry in the SDD market.
A note on imports—big push before the tariffs
With the wide range of tariffs that are apparently going to be directed at China, companies with less dependence on China for assemblies or parts may have advantages across a number of markets for LSVs and GCT vehicles. This could also be a plus according to Alos. Further analysis on this topic will have to wait for future articles.
Looking at last year’s trade figures, imports of partially assembled and complete unit GCT vehicles surged, particularly over the last six months. Overall, imports for 2024 reached just under 236 thousand units and a 70% increase over the previous record high in 2023.
Filling the urban gap with products as a service
The consumer side of the LSV market has, so far, been sales to individual customers. When it comes to urban, and even suburban transit—and, of course, gated communities—the concept of transportation as a service offers an attractive business model.
Golf car companies, especially the Big Three, are close to this model in the fleet market. In the street legal segment, however, this is another mold to be broken; that is, another step to be taken in a new direction.
The bottom line is that if the SDD market is not left for talent-laden start-ups like Also, GCT vehicle manufacturers need to be taking steps to realize and exploit the potential of this new market segment.
