Rad Power Bikes lands massive $150M investment

JRA

Well-Known Member
I said years ago that the first one to market a $1500 eBike would be the winner, guess I was right.
 

Lightning 123

Well-Known Member
Surely this will allow them to produce one or two truly upscale bikes? Be a while before we see em though I'm sure. 👍
I think they need to bring in some new models, even the current models need to be updated and improved, there are people out there that are actually spending money to get more power and longer range when they find out how limited these bikes really are.
 

Asher

Well-Known Member
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? ;)
Everyone in the bike industry is saying there are one year lead times to get supply, so insofar as there is a shakeout, it's going to be 2+ years away.

Rad seems to focus on people who are barely in the market for ebikes, because if they were more serious, many would pick a brand with better quality and value. And higher speed for these American streets. There's still boatloads of these people out there.

Will Rad keep focusing on them and keep at the aggressive marketing cheap ebikes to noobs, or actually try to compete with Sondors, Ride1Up, etc? Will they sell a Class 3 any time soon? Impossible to tell yet, but they have years to turn around the ship.

I don't think internet brands are their prime competition any more. They've been pushing into having a stronger local retail and service presence. Their real competition will be primarily non-consumption, plus legacy bike brands, and whether they will try to reach Rad's price points which is pretty difficult given the industry's reliance on premium suppliers like Bosch. It's kind of a shame since Rad bikes don't look that hard to work on if bike mechanics would learn a little bit about electrics, which would obviate the need for Rad building out its own repair network.

I'm guessing that even if Rad does improve it's lineup, it's never going to be a strong innovator like Luna, Juiced, Sondors or even Ride1Up, except with cargo bikes. It seems very comfortable being a bit behind the trend and lower in production value. Nothing wrong with that, but they are still far below what I'd consider acceptable - it's not a ten year ebike in fit and finish.
 
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Dewey

Well-Known Member
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Asher

Well-Known Member
It would be nice if Rad Power Bikes use their funding clout to make their suppliers improve the quality of their frames and components, issues reported in the past here on the EBR forum and elsewhere online suggest even though the bikes are heavy they aren't necessarily robust as the servicing examples cited by this bike shop reported http://thedailyriderdc.com/thinking-of-purchasing-a-radpower-bike-read-this-first/ prompting rebuttals in the discussion on a Rad Owners forum.
Thank you for those links, pretty illustrative. I laughed at the guy saying 'well the seat collar only breaks because people put their seat too high' - lol what do you expect when you only sell one size?? Despite being probably the biggest volume ebike model/brand in the US?

Rad's whole business model seems premised on selling people to who have decided they won't spend enough to get a quality bike, so they spend less upfront and deal with the problems at higher cost and danger after.

Canyon is really a model for direct sales of bikes. They largely don't put bad parts on bikes to bring prices down just to close a sale. They don't make money when you swap out parts later like a bike shop does, nor do they have a dealer network to charm like a bike brand does. So all this after sale hassle with crappy parts just hurts their brand, so they don't do it. Any issue you have on your bike is vastly cheaper to fix when the bike was being made, and things like frame failures and spoke failures are not a matter of personal taste.

I'm always impressed by people's mechanical abilities here, but having to work on your bike is not a perk for the vast majority of people. It's not even an incidental annoyance, as it might be if you had a full set of tools and experience to draw on.
 

AHicks

Well-Known Member
Region
USA
City
Snow Bird - Summer S.E. Michigan, Winter Gulf Coast North Central Fl.
Rad's whole business model seems premised on selling people to who have decided they won't spend enough to get a quality bike, so they spend less upfront and deal with the problems at higher cost and danger after.
I have to disagree here a bit. I think the majority of buyers go with RAD because they have a great reputation for providing great service on a very reasonably priced bike. You have to keep in mind MANY of these first bike buyers aren't even sure if they will even use the bike, let alone get their money's worth from the investment. I'm pretty sure there's still a big question regarding whether or not this thing is going to sit in a dark corner of their garage and collect dust at the time of purchase. There a HUGE leap of faith involved regarding the purchase of a "first" bike.

And last, because of the popularity of the RAD bikes, there's a resale consideration to be conscious of. The RAD's very likely have the highest resale of ALL the bikes in this price class. Thus, if there is a need to "bail" on the purchase, whatever that reason might be, the loss with a RAD product is minimized... My thoughts anyway. -Al
 

ExPatBrit

Active Member
I have to disagree here a bit. I think the majority of buyers go with RAD because they have a great reputation for providing great service on a very reasonably priced bike. You have to keep in mind MANY of these first bike buyers aren't even sure if they will even use the bike, let alone get their money's worth from the investment. I'm pretty sure there's still a big question regarding whether or not this thing is going to sit in a dark corner of their garage and collect dust at the time of purchase. There a HUGE leap of faith involved regarding the purchase of a "first" bike.

And last, because of the popularity of the RAD bikes, there's a resale consideration to be conscious of. The RAD's very likely have the highest resale of ALL the bikes in this price class. Thus, if there is a need to "bail" on the purchase, whatever that reason might be, the loss with a RAD product is minimized... My thoughts anyway. -Al
That's what I did, the missus would have been pretty ticked off with me if I had spent $6K on a toy and it sat collecting dust. My also senior cycling buddy did the same thing.

"Happy wife happy life"

Rad resale prices are good here in PNW A week ago I sold my upgraded well maintained Rover in one day. I got 85% of my $$ investment back over 18 months and 3000 miles . That bike was reliable, only maintenance + brake pads and tires.

Try that with a $6K bike.:oops:

I have a more expensive brand now, but no way will I spend $6K.
 

Asher

Well-Known Member
I have to disagree here a bit. I think the majority of buyers go with RAD because they have a great reputation for providing great service on a very reasonably priced bike. You have to keep in mind MANY of these first bike buyers aren't even sure if they will even use the bike, let alone get their money's worth from the investment. I'm pretty sure there's still a big question regarding whether or not this thing is going to sit in a dark corner of their garage and collect dust at the time of purchase. There a HUGE leap of faith involved regarding the purchase of a "first" bike.

And last, because of the popularity of the RAD bikes, there's a resale consideration to be conscious of. The RAD's very likely have the highest resale of ALL the bikes in this price class. Thus, if there is a need to "bail" on the purchase, whatever that reason might be, the loss with a RAD product is minimized... My thoughts anyway. -Al

Yeah those are real problems. I'm actually interested in helping my employer establish an ebike trial program once we return to the office, because spending even $1000 on something you're not sure you'll use is a ton of money. Letting people use a bike for a week or two can be very persuasive either way. There's a service in Toronto that rents ebikes monthly, plus there are bikeshares in some cities.

I saw a Ride1Up bike on Craigslist here and it disappeared pretty quickly. I think awareness of other brands is quickly picking up. Juiced, Ride, Sondors, et al
 

sc00ter

Active Member
Look at Pedego, they made a lower price ebike to lure new customers in. Not everyone wants to spend 3k and up, especially on a first ebike but likes customer support. I bought a RAD to test the waters, and when ready I'll upgrade to something else. I still ride and enjoy my RAD.
 

Dewey

Well-Known Member
Look at Pedego, they made a lower price ebike to lure new customers in. Not everyone wants to spend 3k and up, especially on a first ebike but likes customer support. I bought a RAD to test the waters, and when ready I'll upgrade to something else. I still ride and enjoy my RAD.
Yes, a couple of models I think the Pedego City Commuter Lite and the Elevate. Great to see this as Pedego provide good customer service like a loaner ebike while yours is in for servicing.
 

FlatSix911

Well-Known Member
Region
USA
City
Silicon Valley
That's what I did, the missus would have been pretty ticked off with me if I had spent $6K on a toy and it sat collecting dust. My also senior cycling buddy did the same thing.

"Happy wife happy life"

Rad resale prices are good here in PNW A week ago I sold my upgraded well maintained Rover in one day. I got 85% of my $$ investment back over 18 months and 3000 miles . That bike was reliable, only maintenance + brake pads and tires.

Try that with a $6K bike.:oops:

I have a more expensive brand now, but no way will I spend $6K.
Congrats on your upgrade... what did you get?
 

Gordon71

Well-Known Member
Before I bought mine last April I had not only never seen an Ebike but I had not even ever heard of them. This summer I began to see a few in my little part of the world. Not many,maybe 7 or 8 throughout the summer and fall. Still I had several people come up to me and ask about and there were lots of positive comments that I bet led to some purchases. Certainly seeing my old ass easily pedaling up a hill and passing much younger people walking or struggling with theirs got some of them thinking there's a better way.
 

BigNerd

Well-Known Member
I have to disagree here a bit. I think the majority of buyers go with RAD because they have a great reputation for providing great service on a very reasonably priced bike. You have to keep in mind MANY of these first bike buyers aren't even sure if they will even use the bike, let alone get their money's worth from the investment. I'm pretty sure there's still a big question regarding whether or not this thing is going to sit in a dark corner of their garage and collect dust at the time of purchase. There a HUGE leap of faith involved regarding the purchase of a "first" bike.

And last, because of the popularity of the RAD bikes, there's a resale consideration to be conscious of. The RAD's very likely have the highest resale of ALL the bikes in this price class. Thus, if there is a need to "bail" on the purchase, whatever that reason might be, the loss with a RAD product is minimized... My thoughts anyway. -Al
This.

It's like the Apple effect.

People buy them because so many other people buy them so there are readily available accessories and there are always secondary market buyers.

I see enough Rads around my area that I would have bought one if they had a model that had the features I wanted and would have paid more just for the support/reputation.

It's the same reason I would consider Pedego because of the local store support.