RAD Power Bikes Going Bust

[PedalUma]

And are the batteries actually at fault or were the ones that caught fire the result of owner abuse? I'm thinking the latter or there would be a lot more of them.

The RAD I am looking at right now has a five pin discharge in the shape of an 'M'. If it was two pin then replacing the battery would be easy, off the shelf. I do not know what the others do or if they are really needed. It looks like three volts, so one red, one black, and a third control or monitoring signal. This is not one of the bad batteries.

 

[gromike]

Here's an article going around the web at the moment, Rad is prominently featured in it:
How tariffs hit the brakes on America’s booming e-bike industry .

I think most of us already know all of this, but I thought to just add it to this discussion.

 

[Rás Cnoic]

Here's an article going around the web at the moment, Rad is prominently featured in it:
How tariffs hit the brakes on America’s booming e-bike industry .

I think most of us already know all of this, but I thought to just add it to this discussion.

Nice. Might be good to add this to the "Importing from North America Has Become Tough" thread. It's all kicking off politically over there. Great fun. I reckon you rolling in this little hand grenade should get the party to the next level.

 

[ChezCheese:)]

"Seattle-based Rad Power Bikes, a pioneer in mass-market e-bikes, filed for bankruptcy protection earlier this week as it continues to look for a buyer amid falling sales and massive debt.

Court documents show the 18-year-old company owes nearly $73 million to dozens of creditors, including the federal agency that collects tariffs, but has only $32 million in assets.

The Chapter 11 bankruptcy, filed in U.S. Bankruptcy Court in Spokane, allows Rad Power Bikes to remain in business as it reorganizes operations and sells itself, which it hopes to do in the next two months, the company said in an emailed statement Wednesday... "

https://www.seattletimes.com/business/local-business/seattle-e-bike-pioneer-rad-power-bikes-files-bankruptcy-owes-73-million/

 

[Chazmo]

Court documents show the 18-year-old company owes nearly $73 million to dozens of creditors, including the federal agency that collects tariffs, but has only $32 million in assets.

Yikes, that’s a lot of money. Oh well.

 

[Tom@WashDC]

OK, the reason they went Bankrupt is because they and their (2021) investors are just dumb.

From Geekwire
Demand surged during the pandemic, climbing nearly 300%, In 2021 the company raised more than $300 million, reaching a valuation of $1.65 billion and branding itself as North America’s largest e-bike seller. That momentum faded in 2022 as demand cooled.

In its letter to employees last month, Rad said it did not anticipate “the sudden drop in consumer demand from COVID-era peaks,” leaving the company with excess inventory.

They couldn't see that COVID demand was artificial? They thought it would just continue? That bet went south in one year!

Just dumb.

 

[RunForTheHills]

I feel like there is still a lot of fallout from Covid era policies. Like people thinking they could work remotely, selling their house, moving to the sticks, and then getting called back to the office. We'll get back to a new normal eventually, but we aren't quite there yet.

 

[speedub.nate]

They couldn't see that COVID demand was artificial? They thought it would just continue? That bet went south in one year!

Just dumb.

There were many more variables.

Interest rates were lower, consumer optimism was higher, and there was (still is) a growing consumer interest in electric bikes.

Rad wasn't operating in a bubble. They were a legitimate low priced option for consumers who couldn't pay Trek / Felt / Specialized prices, and they needed to grow to lock that market in.

But their real competition was low-priced imports that were suddenly available direct-to-consumer, and nobody with a warehouse or a storefront can compete against that.

Their bet was that consumers would rather spend a few bucks more on their (arguably) higher quality product with in-store financing and aftermarket support, but consumer preference and tight wallets said differently.

I also think they're in the unenviable middle space where they can't attract consumers on the other end who prefer a recognizable, established bicycle brand and/or motor brand (Shimano/Bosch) and disregard Rad as second tier.

 

[Gordon71]

I feel like there is still a lot of fallout from Covid era policies. Like people thinking they could work remotely, selling their house, moving to the sticks, and then getting called back to the office. We'll get back to a new normal eventually, but we aren't quite there yet.

Get back to normal? Doubt it for at least another 3 years unless we get lucky.

 

[RunForTheHills]

Get back to normal? Doubt it for at least another 3 years unless we get lucky.

Note that I said "eventually" and "new normal". That's because I think it will take a while longer and that things will not go back to the way they were. Some jobs will remain remote, some will go back to the office. People will do what they need to do (either find a new job or comply with their employer's policies) and adjust their lives accordingly. I stand by what I wrote. I won't get into other politically charged hot button issues here though.

 

[PedalUma]

The RADs were always heavy, clunky, hub-drives with no feel. I know of a guy, Kevin, who thought his was a mountain bike because of 4 inch tires. A bike like that does not belong on a mountain, it belongs in a flat trailer park. Even in 2024 they were still selling clunky hub-drives with cadence sensors and thumb throttles, like it was 2009 all over again. For 2025 they added some torque sensors but the bikes were still heavy, clunky, hub-drives with thumb throttles.

 

[stompandgo]

Lots of bike and e-bike manufacturers significantly overestimated the demand coming out of COVID. It was no different in the 1980's LA Olympics bike boom and subsequent bust. RAD's issue was all of their growth was heavily leveraged. While analog bike manufacturers consolidated under groups like Pon, CSG, Dorel, and the like, Rad forged ahead alone, thinking that its Chinese suppliers wouldn't steal their designs and eat their lunch. Bad decision.

Most major brand bike manufacturers are quietly dropping their low end e-bike lines. The Lectrics, Velotrics, and Amazon bikes have won that battle.

 

[PedalUma]

Most major brand bike manufacturers are quietly dropping their low end e-bike lines.

Those Canyon gravel bikes with the Bosch are sweet. And good in any situation, from commuter, to off road. They still feel like a bike.

 

[Biplaneguy]

Another part of the problem may be that most of Rad's older models are, well, kinda crude. That was OK at one time but the industry has moved on. Their new Radster models are a big step up in sophistication (I love mine), but I guess it was too late.