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Motor, a startup incubated by Arlington-based energy company AES Corporation, has raised $7 million in Series A funding.
The company is trying to smooth the “fragmented” experience of buying an electric car. It works with utility companies to create a utility-managed charging program that makes it easier for customers to start driving electric, the Washington Business Journal first reported.
Currently, the process of buying an electric vehicle and connecting it to the grid can deter many customers, Motor said in a press release. That makes it harder for the auto industry to achieve President Joe Biden’s goal of boosting electric vehicles sales so they account for half of all U.S. car sales by 2030.
Motor says it removes those barriers by partnering with utility companies.
“Motor has redesigned the EV customer journey to provide utilities with the tools they need to maximize electrification outcomes — both accelerating adoption and driving high enrollment in utilities’ managed charging programs,” per the press release.
“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,” it adds.
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For individual car owners, Motor offers a $749 month-to-month lease package that for what it lacks in cost-savings it wants to make up for in convenience and low-risk commitment. It wraps up the whole process of leasing a car, getting insurance, installing a charging station and maintenance in one application and pricing model that can be canceled at anytime.
Electric utility companies, meanwhile, have their own motives for getting more people in EVs, it says. Companies can meet their own decarbonization goals while increasing demand for electricity and maintaining affordable utility rates.
The new funding will “accelerate its growth into new geographies, refine its digital EV adoption experience, and expand its industry partnerships,” per the press release.
Motor is registered at AES Corporation’s Ballston headquarters at 4300 Wilson Blvd but it also operates in Indianapolis. AES, a Fortune 500 energy company that owns and operates regional utilities and develops energy projects, led the fundraising round along with Mitsubishi Corporation, Japan’s largest trading company, with businesses spanning industries such as machinery and metals.
“Our partnership with Motor has contributed significantly to EV adoption in our market, with an increase of more than 20% in Motor’s launch year in the Indianapolis area,” said Kristina Lund, the president and CEO of two subsidiaries of AES that provide electric services to parts of Indiana and Ohio.
“Motor’s seamless signup process enrolls more than 75% of eligible drivers into managed charging programs, an outcome that benefits all customers,” she added.
Those not ready to buy an electric car, but who are willing to test one out, can take advantage of Motor’s monthly subscription service and drive certain models of Tesla, Audi, Volkswagen, Nissan and Ford.
“We are also introducing an online car buying service,” Motor’s website says. “The future is assuredly electric.”
Motor was founded in 2019 and has under 50 employees, per LinkedIn.