Rad Power Bikes, once the largest e-bike brand in North America, is on the cusp of shuttering as sudden growth during the pandemic has dwindled.
A spokesperson said Monday that the Ballard, Washington-based company “may be forced to cease operations” after it was unable to locate outside partners or funding. The company filed a notice with the state on November 11 that said 64 workers in Seattle would be laid off.
Heightened demand during the pandemic forced several e-bike companies to up their inventories and operations. Now, sales are falling.
Rad Power helped popularized electric bikes in the U.S. Founded in 2007 by Mike Radenbaugh and Ty Collins, the company produced affordable e-bike models that were easy to operate. At the time, their competitors were hitting higher price points—often more than twice as expensive.
Shortly before the pandemic, Bicycling Magazine praised the Rad Power RadCity commuter bike as, “the affordable e-bike that can change your life.” The complete bike, shipped direct to your door was priced well under $2,000, while at the least, comparable options from Trek or Specialized ran from over $3,000 to $5,000.
A decade later the brand was selling in Europe, operating from the Netherlands. And then when Covid-19 broke out, it folks sought bikes as a socially-distanced way to recreate and get outside.
Between February 2020 and October 2021, the Rad brand raised over $300 million in investment. By 2021, it was valued at $1.65 billion.
But the company’s response to that surge in demand seems to have set it up to fail in the long run.
Rad Power “appeared to position itself for the kind of explosive growth it experienced during the pandemic but that waned in recent years,” said Micah Toll, a writer at Electrek.
The company faced product recalls and lawsuits in response to a battery fire and the death of a 12-year-old rider in 2021.
They began restructuring through layoffs in 2022 with a new CEO, and then hired another, Kathi Lentzsch, this past March. Lentzsch said the company would be focusing on brick-and-mortar retail. At the moment, Rad Power stores exist in nine cities across North America, including Seattle.
The company hasn’t made any final decisions, but it has said it’s committed to being transparent with staff about a potential closure.
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Ava Levinson
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