It was almost exactly a year ago that Rad Power Bikes’ announced a $25 million fundraising round. It was a sign of good things to come from Rad Power Bikes. At the time I thought their prospects looked rosy. Quality affordable electric bikes paired with excellent customer service is an excellent recipe for success.
But no one could have predicted what happened shortly after the last financing round. Just listen to some of my interviews with owners of electric bike companies and you’ll get a feel for just how much the pandemic impacted their business for the better and for the worse. In a telling podcast episode of How I Built This, CEO Mike Radenbaugh noted that there were more Rad Power Bikes on order than they had sold since the inception of the company back in 2015. At the time of the interview, Rad Power Bikes was slated to do $300 million in revenue in 2020, up from $100 million in 2019. To put it plainly, Rad Power Bikes, along with the electric bike industry went bananas in 2020.
This surge in demand of course was welcomed but it meant that Rad Power Bikes had to rise up to the increase in demand. Delays in ebikes and longer response times were par for the course across the entire industry. Ebikes once in stock to ship in just few days were delayed weeks or even months. Many expect high demand and low supply as we approach spring 2021.
Rad Power Bikes $150 Million Round
Now the company has announced a $150 million minority financing round. Let’s pause on that just for a second. In just 6 years, Mike Radenbaugh and his friend Ty Collins along with the rest of the team went from the original RadRover to now offering 11 models and attracting $150 million from some big name investors. Rad Power Bikes was already the leader in North America and this round only will solidify that hold at least for the foreseeable future. Not to mention they continue to grow in Europe.
Rad Power Bikes has more than doubled their teams across North America, Europe, and Asia every year. Now the company plans to grow even faster, with goals to decrease delivery times and get more people on the road, a goal we can all get behind. This will no doubt lead to an even larger customer service team, more physical locations across the US and increasing coverage of Rad Mobile Service. Rad Power Bikes even did a partnership with Costco in 2020. My guess is it was a limited test to allow customers to see the bikes in person. It remains to be seen whether this strategy will continue.
Another interesting stat that caught my eye from today’s news: Rad’s retail and service network is slated to cover an impressive 75% of US customers by the end of 2021. The company also hinted at groundbreaking digital tools to enhance buying and the ownership experience and “new categories of products and services”.
Here’s what Mike Radenbaugh had to say about the new round in the press release
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, founder and CEO of Rad Power Bikes. 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.
More of the same for Rad Power, in a good way
I recommend Rad Power Bikes often because it’s the easiest brand to recommend. Of course, there are other great ebike brands, but no other company has the significant resources to invest significantly across the business. Not only can owners rest easy during the warranty period, but there is also going to be someone there to answer questions over the long term. Plus there is an ever-growing Rad Power Bikes community. If you already own a Rad Power Bike or are considering buying one be sure to check out the Rad Power Bikes Forum run by Ebike Escape.
More Rad Power Bikes mobile service vans and physical locations mean the customer experience will only improve. I expect this to put more pressure on the direct to consumer ebike brands and bike shops alike. Rad’s 200,000 riders coupled with this investment means you’re likely to spot Rads around your city more frequently.
It seems like some exciting things are on tap for Rad and the company still hasn’t announced any 2021 Rad Power Bikes models. We’ll certainly be following developments closely here at Ebike Escape.
Buying a Rad Power Bike? Using my affiliate link makes content like this possible.