North America’s largest e-bike company is bringing its bikes to consumers for the first time through a subscription plan – but not in the US
Seattle-based Rad Power Bikes is partnering with a German company already in the e-bike subscription business to provide its vehicles for rent.
Berlin’s Cycle offers e-bikes to couriers and delivery services in several European countries. This month, they will be adding two Rad freight models to its subscription lineup and making them available to consumers: the RadRunner and the RadWagon. The bikes will cost €79.90 per month or around $78, according to TechCrunch. Subscribers can choose between a monthly rental or an annual contract, according to the report.
The RadRunner currently sells in the US for $1,300 for a more basic model and $1,900 for additional features. The RadWagon retails for $2,000.
Cycle, formerly called GetHenry, raised $17.4 million in May. It is one of many international companies that offer commercial subscriptions for e-bikes used in deliveries.
Rad launched in 2007 and began selling e-bikes directly to consumers through online sales in 2015. In 2018, it rolled out its first cargo bikes. The following year, it signed a deal with Domino’s to supply hundreds of its e-bikes for pizza deliveries in several US cities.
When the COVID-19 pandemic began in early 2020, Rad took off as people turned to bikes for socially distanced transportation, exercise and recreation. Rad reported an almost 300% increase in demand in May of the same year. Last year, it raised $304 million and achieved unicorn status, hitting a valuation of $1.65 billion in October.
But this year, Rad has encountered a few bumps. It laid off 163 employees in two rounds of layoffs. He recently shared two safety warnings with customers of his RadWagon 4 bikes, as reported in the Seattle Times. The electric bike model has potential defects in its tires and misalignment of its rims.
Rad hasn’t said if or when it will offer e-bike subscriptions in the US
The company is headquartered in Seattle with offices in Vancouver, British Columbia and the Netherlands, as well as teams in Shanghai, China and Taipei, Taiwan.
Several companies offer electric car subscriptions in some US cities. Borrow offers a variety of electric vehicles, while Kyte and Autonomy offer subscriptions only for Teslas.