Why This Car Basically Only Exists in NYC

The Fisker Ocean, an electric SUV from a spectacularly failed company, now primarily exists as a rideshare vehicle in New York City due to a bulk purchase by American Lease driven by NYC's 'Green Rides Initiative' and the bankruptcy fire sale price.

• Fisker Inc. rapidly went bankrupt due to numerous car defects and mismanagement, leading to a fire sale of its Ocean EVs.

• New York City's 'Green Rides Initiative' spurred American Lease to buy thousands of Fisker Oceans at a deep discount for its rideshare fleet.

• The Fisker Ocean, despite its flaws, is now predominantly a New York City rideshare vehicle, supported by specialized repair services.

The Fisker Ocean, an electric SUV, is uniquely prevalent in New York City's rideshare fleet because Fisker Inc. collapsed spectacularly, leading to American Lease acquiring thousands of unsold vehicles at a significant discount. This purchase was strategically made to comply with New York City's 'Green Rides Initiative,' which mandates zero-emission rideshare vehicles by 2030, despite the car's numerous reported faults and the complexities of managing its post-bankruptcy software and parts.

Fisker Inc.'s Downfall

• 00:00:21 Fisker Inc., the creator of the electric SUV 'The Ocean,' experienced a rapid and spectacular downfall shortly after starting sales in 2023, following an earlier bankruptcy of founder Henrik Fisker's first automotive venture in 2013. The company built about 10,000 Oceans but delivered less than half, encountering widespread customer dissatisfaction due to numerous issues like inconsistent keyfobs, non-functioning doors, and critical warning light problems. This led to multiple investigations by the National Highway Traffic Safety Administration, a significant price cut, and ultimately, a bankruptcy filing in June 2024, just a year after launch.

Ocean's Product Flaws

• 00:01:32 Despite features such as eco-leather interiors, a full-length sunroof with optional solar panels, and a 'California Mode' that drops all windows, the Fisker Ocean was plagued by significant functional defects upon its release. Common complaints included a lack of cruise control, unreliable keyfobs, driver doors that wouldn't open from the inside, and non-compliant warning lights. These issues quickly led to multiple investigations and a scathing public review by Marques Brownlee, contributing to the company's rapid decline.

American Lease's Acquisition

• 00:03:36 During Fisker's bankruptcy proceedings, American Lease, the largest company providing for-hire vehicles to rideshare drivers in New York City, acquired 2,800 unsold Fisker Oceans for approximately $16,000 each. This strategic bulk purchase was prompted by New York City's 'Green Rides Initiative,' mandating all rideshare vehicles to be zero-emission by 2030. American Lease saw an opportunity to cheaply acquire an EV fleet to meet upcoming regulations, rather than purchasing more expensive alternatives like Toyota EVs or used Teslas, despite the inherent challenges of buying from a failed company.

Post-Bankruptcy Operations

• 00:04:41 American Lease faced significant challenges post-acquisition, particularly managing the Fisker Ocean's software and sourcing replacement parts, issues typical of a company that imploded. They partnered with Indigo for software management after negotiating with the Fisker Owners Association (FOA), and the BHP Service Center has specialized in repairing these vehicles, even working on manufacturing their own parts due to the scarcity. Despite the car's faults, its spacious backseat and trunk make it a suitable rideshare vehicle, expected to last 150,000-200,000 miles in service.