Rivian’s spinout startup, Also, securing a $200 million Series C led by Greenoaks and DoorDash, marks a pivotal moment for the electrification of urban logistics in the Middle East and North Africa (MENA). The firm’s vertically integrated model, combining hardware, software, and manufacturing, positions it as a key player in developing small, affordable electric vehicles tailored for dense urban centers—a critical need in MENA’s rapidly urbanizing economies. DoorDash’s strategic investment as a backer and operational partner underscores the regional appetite for decarbonized delivery solutions, with MENA distributors increasingly grappling with last-mile challenges in arid, infrastructure-constrained environments. The startup’s focus on pedal-assisted bikes and delivery quads aligns with MENA’s growing demand for hybrid mobility solutions, though institutional investors will scrutinize scalability costs and dependency on North American capital flows.
The broader MENA sovereign capital landscape remains cautious amid regional fiscal transitions, with Gulf Cooperation Council (GCC) nations redirecting public funds toward sovereign wealth programs like Saudi Public Investment Fund (PIF) or UAE’s Mubadala. While Rivian itself operates independently of direct sovereign ties, the $1.25 billion Uber deal—including potential autonomous vehicle purchases—signals institutional appetite for disruptive tech. This dynamic could spur MENA-based sovereign wealth funds to diversify into global EV ecosystems, though geopolitical risks and regulatory fragmentation pose hurdles. Notably, Rivian’s spinout highlights the need for sovereign capital to address infrastructure bottlenecks, such as charging networks and rural electrification in MENA, where urban mobility hubs alone cannot solve systemic gaps.
Venture capital activity in MENA’s tech sector has grown incrementally post-pandemic, with Q1 2024 reporting $400 million in VC funding, per CB Insights. Also’s partnership with DoorDash and Rivian’s Uber-linked equity raise exemplify how cross-border collaborations could catalyze regional adoption—a trend VC firms may emulate. However, the MENA startup ecosystem lags in hardware innovation due to capital allocation preferences toward fintech and SaaS. The success of Also’s Series C hinges on translating North American product development into MENA-adjacent markets, where regulatory models for autonomous mobility remain nascent. For regional infrastructure, scalable renewable energy solutions and policy harmonization will be critical to replicating this EV-first model at scale, ensuring sovereignty isn’t compromised by dependency on external actors.
