A company seeking to create a plethora of EV drivers in the market has opened a location in downtown Dayton. The startup plans to help expand EV education and infrastructure across the region. Recent funding from AES and Mitsubishi will further future expansion.
Motor, which provides a consumer electric vehicle (EV) adoption platform for electric utilities, was created to fill the demand gap between people currently driving EV and where the world needs to be by 2030 to hit global initiatives for emission standards. The Arlington, Virginia registered startup has operations in Indianapolis and, as of Jan. 31, Dayton.
"Dayton has a long history of being on the frontlines of the transportation industry, from planes to cars. Its role in manufacturing and engineering has landed Dayton in the history books. It's no surprise that you still see companies finding their way to Dayton and that this area will continue making an impact in the electric transportation world,” said Michelina Restaino, Motor’s Dayton fleet operations manager.
How Motor works
Motor works to break down the barriers for driving electric and accelerate electric car adoption in targeted communities. Dayton was selected as their second market after success in Indianapolis to help the market “catch-up” compared to others in the state like Cincinnati and Columbus.
The startup now offers Daytonians an all-in-one, low commitment way to start driving electric through its subscription service platform Motor Drive which can be found on IOS or Android devices.
The platform includes a 24/7 concierge service to help answer questions and select a car for a minimum one-month commitment from Motor’s existing fleet – which includes popular models from Tesla, Audi, Volkswagen, Nissan and Ford. Subscriptions start at $749, increasing depending on the subscription tier selected.
The selected car is delivered straight to the customer like Carvana. Once the driver is prepared to invest 100% in electric, Motor can help them purchase their first EV car from their fleet and through partnership with various dealerships.
“We literally just hold your hand through the whole process. The idea was that if people need to be exposed to electric that they will stay because we know these cars are great. The Car is the star,” said Rhett Barker, Motor regional lead for Indianapolis and Dayton.
Barker said Motor understands and appreciates how large of an investment cars are. But driving electric for the first time is something that goes beyond the needs of the average try-before-you-buy test drive at the dealership.
“Many of our members report that they were first time electric car drivers and that through their month or months with Motor they were able to confirm that electric was the way to go,” Restaino said. "I look forward to supporting the Miami Valley as another method for people to discover, switch to, and stick with electric cars."
Motor’s Dayton impact and future
Although Motor is just getting started in the region, having officially launch their operations at the Hub in downtown Dayton on Jan. 31, the startup is prepared to invest in Dayton’s EV future. On the back end of business, Motor works with cities and communities to enable more charging accessibility and infrastructure, using data from their own customer base.
The startup has already met with the city of Dayton and is prepared to partner with companies to offer employees discounts on subscriptions. Barker said it has become an adopted option by public and private companies in Indianapolis who have emission goals.
“Electrifying your employees’ cars is one of the best things you can do to help with that and the most cost effective,” Barker said. “I think it's really important that that companies in Indianapolis have started to figure that out.”
Motor also helps customers install charging stations in their own homes by covering up to $1,000 of instillation costs. Barker said the instillation has found to be a significant investment in home value.
“It costs $1,000, but the received value is actually $8,000 to $10,000 – almost tenfold – just because no one wants to deal with installing it,” Barker said. “So, it's a really good investment in your house that, as progression and these EVs continue to take off, I can guarantee you will not regret installing.”
In 2022, Motor did over 300 deliveries with 200 members, less than two years after initial launch in Indianapolis. With Dayton now under their belt, plans to select an unnamed third market are well underway, and Barker anticipates their team growing exponentially with the next few expansions.
Motor’s 2023 revenue goal is $7 million. After the startup secures its first batch of 15 or 20 subscribers, Barker believes the business will begin to take off through reference, hopefully inspiring 150 customers to switch to electric by year’s end.
“With the growth that we expect to see happen here, we need to ensure that we are making sustainable choices,” Restaino said. “Motor has been privileged enough to be welcomed in Dayton with open arms as people make their plans to move toward personal decarbonization. I am honored to have this opportunity to be here in Dayton during this time, during this progress.”
Motor’s recent $7 million win
Motor recently closed a $7 million Series Investment round co-led by The AES Corporation and Mitsubishi Corporation.
With the automotive industry’s goal to grow EV sales to 50% of car sales by 2030, a fragmented automotive retail experience is is keeping potential EV drivers from entering the mark – putting the goal at risk, according to a Motor press release.
Motor is addressing the challenge with its first-of-its kind EV adoption program for utilities that makes it easy for customers to start driving electric. The company’s electrification activation platform gets new EVs connected to the grid by uniquely enrolling customers in utility managed charging programs when they get their first EV.
Motor CEO Praveen Kathpal said he is excited to welcome Mitsubishi Corporation as an investor because of its high alignment with our team’s purpose: to decarbonize personal mobility. This is alongside AES’ continued participation as an investor to the startup which brings a collaborative approach to co-creating solutions in our initial markets that are broadly relevant to utilities in the United States.
“We believe Motor is ideally positioned at the crossroads of the growing convergence between the energy and transportation sectors,” said Mitsubishi Corporation’s Mobility Business Division COO Naoya Takai
Electric utilities are motivated to accelerate EV adoption to meet decarbonization goals, grow electricity demand, and keep rates affordable for customers.
Motor has worked to provide utilities with the tools they need to maximize electrification outcomes – both accelerating adoption and driving high enrollment in utilities’ managed charging programs. When a utility hires Motor, its customers get an easy, low-commitment, and all-in-one experience that includes a car, home delivery, EV onboarding, charging installation, and utility program enrollment.
Kristina Lund, President and CEO of AES Indiana and AES Ohio, said their partnership with Motor has contributed significantly to EV adoption in their market, with an increase of more than 20% in Motor’s launch year in the Indianapolis area. Lund said Motor’s signup process enrolls more than 75% of eligible drivers into managed charging programs.
The $7 million in funding from Mitsubishi and AES will further accelerate the company’s growth into new areas and help refine its digital EV adoption experience while expanding industry partnerships.
“With this new investment we will continue growing our impact by giving utilities the power to accelerate EV adoption and providing utility customers with the easiest way to start driving electric,” Kathpal said.
With more than 600 employees and $650 million in revenue, AES Ohio is one of the largest companies in the Dayton area, according to DBJ research. Its parent, AES Corp., is a Fortune 500 power company that provides energy services to 14 countries through its portfolio of distribution businesses, as well as thermal and renewable generation facilities.
Motor
Founded: 2019
Employment: 12 (Plans to hire 2 in 2023)
Dayton location: The Hub in downtown Dayton
Indianapolis location: 1 Monument Circle in Indianapolis, IN
Cars in fleet: 240
Website: https://trymotor.com/
