Rad Power Bikes lands massive $150M investment

FlatSix911

Well-Known Member
Region
USA
City
Silicon Valley
This is good news regarding the continued growth of affordable EBikes.


Rad Power Bikes has announced a large funding round that will see $150 million added to the industry-leading electric bicycle company’s coffers. Rad Power Bikes is the largest e-bike company in the US. Sales for 2020 are estimated to have topped 100,000 e-bikes and are growing quickly. Rad Power Bikes is expected to use the new funding to reinvest in maintaining its market dominance through further innovation in new e-bike models as well as by scaling the company’s retail presence and service offerings.

While the company mostly operates a direct-to-consumer model that has allowed it to offer industry-leading prices unmatched by typical bike shop e-bikes, Rad Power Bikes has spent the last few years increasing its retail and service footprint. The company’s Rad Mobile service, which uses vans outfitted as nearly full-service bicycle shops, has helped the company assuage service and support worries that typically plague most direct-to-consumer e-bike companies. I had the chance to test out the Rad Mobile service myself and was impressed to see how the company managed to bring a bike shop experience right to my driveway.

Rad Power Bikes tells us that the company expects to have retail and service coverage for 75% of its US customers by the end of 2021. A new showroom is expected to open in San Diego this spring. The company has been growing internally as well, increasing to 325 employees in 2020 and is expecting to double that number by the end of 2021.
 

Casual Rider

Member
Region
Canada
This is good news regarding the continued growth of affordable EBikes.


Rad Power Bikes has announced a large funding round that will see $150 million added to the industry-leading electric bicycle company’s coffers. Rad Power Bikes is the largest e-bike company in the US. Sales for 2020 are estimated to have topped 100,000 e-bikes and are growing quickly. Rad Power Bikes is expected to use the new funding to reinvest in maintaining its market dominance through further innovation in new e-bike models as well as by scaling the company’s retail presence and service offerings.

While the company mostly operates a direct-to-consumer model that has allowed it to offer industry-leading prices unmatched by typical bike shop e-bikes, Rad Power Bikes has spent the last few years increasing its retail and service footprint. The company’s Rad Mobile service, which uses vans outfitted as nearly full-service bicycle shops, has helped the company assuage service and support worries that typically plague most direct-to-consumer e-bike companies. I had the chance to test out the Rad Mobile service myself and was impressed to see how the company managed to bring a bike shop experience right to my driveway.

Rad Power Bikes tells us that the company expects to have retail and service coverage for 75% of its US customers by the end of 2021. A new showroom is expected to open in San Diego this spring. The company has been growing internally as well, increasing to 325 employees in 2020 and is expecting to double that number by the end of 2021.

It would be wonderful if they had a showroom in Eastern Canada. I'm dying to try out a Radrunner, but there are absolutely none in my area.
 

Dewey

Well-Known Member
The amount is enormous, it makes last year's $25 million funding round look like venture capital companies were happy to have backed a winner because of the increase in sales due to the pandemic, 100,000 ebikes in one year are impressive numbers.
 

Dewey

Well-Known Member
Good for the sector in general.
Perhaps, I can't see local bike shops being too happy about Rad expanding its retail stores and service vans, though it will make for a better ownership experience. The focus on the US budget ebike market is encouraging, I was glad to see innovation and product development mentioned, we need better budget ebike designs.
 
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AHicks

Well-Known Member
Region
USA
City
Snow Bird - Summer S.E. Michigan, Winter Gulf Coast North Central Fl.
They need to replace that City with a bike that's got a gear driven hub and hyd. brakes at minimum...
 

MarkF

Active Member
A lot of retailers did really good during the pandemic. My sales were up 50% from the year before. I don't expect to see the same this year.
Will Rad do good this year or the next with company's like Sonders, and the other dozen company's that have made a presence over the last 2 years. Are they going to take a bite out of outdated Rad. They have a lot more competition now than they did 2 years ago. But they got a lot of money to work with. Me I wouldn't invest in a company like Rad knowing what I know now.
 

FlatSix911

Well-Known Member
Region
USA
City
Silicon Valley
A lot of retailers did really good during the pandemic. My sales were up 50% from the year before. I don't expect to see the same this year.
Will Rad do good this year or the next with company's like Sonders, and the other dozen company's that have made a presence over the last 2 years.
Are they going to take a bite out of outdated Rad. They have a lot more competition now than they did 2 years ago.
But they got a lot of money to work with. Me I wouldn't invest in a company like Rad knowing what I know now.
Good question... it's easy to make hay when the sun is shining.

The real test will be when the superheated bike market returns to normal... there will be a huge consolidation and industry shakeout coming.
Only the strong will survive... <MarkF>
can you share any relevant information on Rad as an investor? ;)
 
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FlatSix911

Well-Known Member
Region
USA
City
Silicon Valley
I think bike sales are going to drop dramatically and they used market will be huge for awhile. all those people that bought bikes will go back to their old ways.
Agreed... there will be some killer deals available on pre-owned later this year. Also indoor spin bikes... Peloton anyone? ;)
 

dunksalot

Active Member
Out of curiosity, where do they advertise since they are direct-to-consumer? Selling 100K bikes is quite astonishing. I'm not sure how they got there and word of mouth is nice but not that nice. Love the mobile vans as a consumer!
 

fooferdoggie

Well-Known Member
Out of curiosity, where do they advertise since they are direct-to-consumer? Selling 100K bikes is quite astonishing. I'm not sure how they got there and word of mouth is nice but not that nice. Love the mobile vans as a consumer!
ever been on Facebook?
 

legsofbeer

Active Member
Having been around the block a few times on these things, $150 mil could mean they just got a $150 mil cash injection, or it could mean something like $50 mil now, and two more $50 mil tranches if you hit your numbers by the target dates. I couldn't find any news articles with the details, just rephrases of the press release. Still, 100k bikes sold in 2020 is impressive, at $1400 a bike that's $140 million revenue.