Rad Power Bikes, which lays claim to being North America’s largest e-Bike only brand, has attracted US$150 million (A$194 million) in investment from major institutions such as Counterpoint Global (Morgan Stanley), the Fidelity Management and Research Company and The Rise Fund, among others.
Fitting a trend of private equity investment in some of the world’s largest e-Bike brands, in particular those with consumer direct channels, the Rad Power Bikes is, according to a Morgan Stanley spokesperson a bet on electric bikes, ‘…playing an important role in the future of mobility, extending far beyond the traditional bike market.’
Sam Chainani, Managing Director, Morgan Stanley Counterpoint Global said of the deal: “Our partnership with Rad Power Bikes is exciting as this innovative company is rapidly changing the way the world moves. Mike Radenbaugh (Rad Power founder) and his team have already proven the economics of convenient, energy-efficient mobility solutions.”
Rad Power bikes commands a strong presence in the North American e-bike market and is growing a steady foothold in Europe. The business grew its employee base to 325 in 2020, a tally the company plans to double to approximately 650 by the end of 2021, hiring throughout North America, Europe and Asia.
“We are thrilled to be working with this group of prestigious investors who are known for successful, long-term investments, and share our vision for the future of mobility,” said Mike Radenbaugh. “Demand for our products has outpaced our wildest projections every year and this partnership is helping us accelerate in-house innovation while creating more of what our customers tell us they love. I can’t wait for everyone to see what we will deliver in 2021 and beyond.”
Rad Power’s distribution model is direct to consumer, bypassing traditional bicycle shops.
Challenged by after sales service, Rad Power has begun to put in place a network of physical and mobile units to service customers. This includes dedicated pre and post-purchase customer support teams, online self-service tools, Rad Retail Showrooms, Rad Mobile Service Vans and its local service partner network.
Since launching its flagship RadRover Electric Fat Tire Bike in 2015, Rad Power Bikes has quickly grown to offer 11 e-Bike models. As well as believing itself to be North America’s largest e-bike brand, the firm claims a community of well over 200,000 riders in more than 30 countries and thousands of commercial operators.
To the best of our knowledge, Rad Power bikes are not yet on sale in Australia.
A longer version of this article was first published in Cycling Industry News (UK)