I was wondering about that when an email from them offering the Rover 6 for $999. which is an awfully good price. Thought about it briefly but my 2020 Rover still runs great so saw no reason.
Rad Power Bikes says it may close down by January
Rad Power Bikes, one of the most well-known electric bicycle companies in North America, appears to be headed for collapse...electrek.co
Electric Bike Companies That Have Gone Out Of Business
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Stefan Mikes
Gravel e-biker
- Region
- Europe
- City
- Mazovia, PL
Guys, I've just caught cold and cannot think clearly. I'm also no expert in the American market. Here are some thoughts; please feel free to correct me if I'm wrong.
I cannot stop thinking big established manufacturing brands charge high price for high quality, excellent warranty and support. Any brand is or might affected by the hard times but isn't it the fact the brands who charge a way higher price for their e-bikes can withstand the difficulties easier?
Rad was trying in the EU and failed. The price offered by Rad there was possibly the lowest imaginable (if we forget the illegal Chinese imports). Rad failed in that demanding market, and that's something we should also ask "why?"
- Rad Power Bikes has only 64 people in the headquarters. Meaning, RPB has never been an e-bike manufacturer but only a reseller
- I think RPB used to order a big number of Rad branded e-bikes in China at a very low cost
- Because of the specifics of the chosen market and the presence of literally thousands of no-name competing brands, RPB had to operate at low prices such as $1,299 -1,999
- Which allowed for a very low profit margin making the brand unable to sustain in the harder times (tariffs, for instance)
I cannot stop thinking big established manufacturing brands charge high price for high quality, excellent warranty and support. Any brand is or might affected by the hard times but isn't it the fact the brands who charge a way higher price for their e-bikes can withstand the difficulties easier?
Rad was trying in the EU and failed. The price offered by Rad there was possibly the lowest imaginable (if we forget the illegal Chinese imports). Rad failed in that demanding market, and that's something we should also ask "why?"
Jeremy McCreary
Bought it anyway
- Region
- USA
- City
- Carlsbad, CA
Exactly. Zillions of ebikes out and about in coastal SoCal now, and many if not most are Rad products. Many of them serve important utility roles, including shopping duty, school and activity transport for kids, surfboard transport, etc. When those Rads break, their riders can't just say, "Oh well, ebiking was fun while it lasted."
I can imagine local ebike repair shops snapping up proprietary Rad parts to fill the coming void.
Many other broken Rads will just be junked. Where will all those squandered resources end up? Could ebike salvage ever be a viable business in a place like this?
jabberwocky
Well-Known Member
Broadly speaking, increased competition at the low end and tariffs eating what profit margin they had are probably the major factors, but there were others. They ate a few lawsuits in the US regarding people getting injured (and in one case, killed) riding their bikes. They got huge influxes of venture capital cash in 2020 and 2021, which came with big growth expectations and they moved aggressively to expand sales to brick and mortar. I personally think they tried to grow too fast and too aggressively at a time when competition was exploding and margins were shrinking and put themselves in a bad spot. Their last two CEOs were not even bike industry people; Phil Molyneux came from Sony and Dyson and Kathi Lentzsch was previously at Bartell Drugs. Which speaks to the leadership mindset. IMO you need people who know the bike industry if you want to succeed in the bike industry.
Like a lot of niche industry companies, they established themsevles as a successful company and then took that sweet, sweet VC cash to try and achieve rapid growth outside the niche industry they started in and it didn't work out. It rarely does. But the OG company people do get to cash out.
I also think they were hurt because they largely stuck with legal bikes as the chinese imports were moving towards emotos-pretending-to-be-ebikes, which was more attractive to the non-cyclist crowd.
I personally think its a shame they are going out. I can't speak for their current lineup but in the past they were really solid bikes for their price point. I have two friends who have early rad wagons and they have been solid and reliable commuters at a really good price. I do think for several years they did a good job of giving people a lot of bike at the price points they were sold at. Not amazing, but generally a good value. But there is a lot more competition in that space now.
gromike
Well-Known Member
- Region
- USA
- City
- City of Dreams
They did build some interesting frames. They cashed in early on the cargo ebike craze. I wouldn't mind a Rad Wagon 1 to fix up.
Maybe our tariff madness will raise the price of the crazy cheap ebike imports and make rebuilding a Rad viable, but until then it's not a viable business model. Not when something like I bought this summer for $388, which includes tax and shipping, is out there:
It's a s*it time for bike companies. The boom then bust of the covid years, then the cost of living crises where all consumer goods sales dropped. Bikes aren't exactly essentials when belts are being tightened. And now this tariff nonsense. It's no surprise so many are going under. The industry mantra had been 'survive to 25' but things are still bad.
Chargeride
Well-Known Member
Britain is that broke that we are clamping down on expensive bikes in work schemes.
We are down to you only get a new pen when the old one runs out .
www.independent.co.uk
We are down to you only get a new pen when the old one runs out .
Rachel Reeves set to clamp down on high-end bike purchases in Cycle to Work scheme
It comes amid concerns about ‘Surrey Hills’ cyclists taking advantage of the scheme
www.independent.co.uk
Jeremy McCreary
Bought it anyway
- Region
- USA
- City
- Carlsbad, CA
Totally with Rachel on this one — even if GB had all the money in the world. Why wasn't the program properly capped to begin with?Britain is that broke that we are clamping down on expensive bikes in work schemes.
We are down to you only get a new pen when the old one runs out .
Rachel Reeves set to clamp down on high-end bike purchases in Cycle to Work scheme
It comes amid concerns about ‘Surrey Hills’ cyclists taking advantage of the scheme
Rich people hijacking funds really meant for everyone else is a time-honored tradition in the US. The UK's clearly not immune.
The scams they ran here during COVID were absolutely obscene. Haven't heard much about accountability for the scammers, but plenty of consequences for taxpayers and the folks who got too little help.
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Chargeride
Well-Known Member
How is the local vegan bikeshop going to survive if Tarquin cant afford the latest organic bamboo Fortegue Sampson superlight.
Chargeride
Well-Known Member
It was capped, but the bourgeois complained.
Jeremy McCreary
Bought it anyway
- Region
- USA
- City
- Carlsbad, CA
Tragic to think of her having to settle for the tofu fiber model.
tomjasz
Well-Known Member
- Region
- USA
- City
- Minnesnowta
have ruined the market. I saw 4 $900 bikes in the last two weeks, and in order to renew the brakes, entire complete brake sets are needed. I predict thousands of used bikes that MIGHT have frames suitable for a rebuild.
But when a decent, reliable, and safe battery has nearly the cost of those Walmart quality complete eBikes, one should really wonder. I can barely buy a container of quality motors and kits for $900 a pop.
How to get OG company people do get to cash out.
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