Revoy Raises $27 Million to Turn Old Diesel Trucks Into Hybrids

Revoy, a San Francisco-based company, has successfully raised $27 million to convert traditional diesel trucks into hybrid electric vehicles. The investment, spearheaded by Standard Capital with participation from XYZ Venture Capital, Doerr Capital, Time Ventures, Y Combinator, Leap Ventures, and Y Combinator co-founder Paul Graham, brings the company's total funding to $41 million.

The innovative technology at the heart of Revoy's solution is the Revoy Dolly, a device that attaches to the standard fifth-wheel hitch of a truck and provides electric assistance to the diesel engine. This eliminates the need for purchasing new trucks or rewiring existing ones. The dolly itself houses a motor and a 575-kilowatt-hour battery, comparable in size to a fully electric semi.

The battery is capable of powering a loaded 36-tonne rig over 200 miles on a full charge, reducing diesel usage by up to 95% and emissions by up to 85%.

Regenerative braking technology further enhances the efficiency of the Revoy Dolly by recovering energy during deceleration and shortening stopping distances by as much as 30%. The device operates without requiring any modifications to the truck or trailer it is attached to. It monitors the driver's throttle and brake inputs, adjusts torque during acceleration, and switches to charging mode during braking, all without requiring driver input.

Additionally, the Revoy Dolly comes equipped with driver-assistance features like blind-spot detection and rollover correction.

The company's business model is based on leasing the Revoy Dolly by the mile to trucking companies. This allows them to continue using their existing diesel tractors while only paying for the miles run on electric power. CEO Peter Reinhardt, who previously sold his company Segment for $3.2 billion, highlights that this approach enables competition with diesel engines, as no other electric truck in the US currently offers the same benefits.

Revoy's founder and CTO, Ian Rust, describes the technology as using robotics to swap the fuel source instead of removing the driver altogether.

The recent funding will primarily be utilized to launch commercial service later in the year on a 200-mile freight route near Portland, Oregon, starting with four dollies manufactured in China. This initial deployment, while modest, is strategic, as Reinhardt believes around two dozen dollies are required for a commercially viable lane, which the company believes can be achieved without scaling up production.

Some of the additional funds will also be allocated towards developing a second-generation dolly with a smaller, less expensive battery pack that maintains the same 200-plus-mile range.