You’ve probably seen one of their bikes, or even own one. Now the company who makes them could be closing.
Rad e-Bikes of Seattle files WARN Alert
According to Geekwire and other sources, the company that exploded to billion-dollar value during the pandemic could possibly be laying off the rest of its workforce of 64 people.
Founded in 2007, Rad E-Bikes steadily grew and then in 2019 began to gain significant traction as peoples’ exercise habits and more began to change. The pandemic caused a lot of shifts in travel and exercise behavior, with people seeking new ways to deal with less entertainment and travel options.
In 2021, the company was valued at $1.21 billion. However, within two years it began to erode. Consumer shifts and interests slowed bike sales, and a wrongful death lawsuit in Europe and a product recall involving around 30,000 bikes hampered growth. According to Geekwire:
“Rad’s struggles come amid a broader cooling of the e-bike market. VanMoof filed for bankruptcy in 2023, while Belgium-based Cowboy and other rivals have struggled to find sustainable footing after pandemic-era highs. Rising costs, tariffs and other factors have forced several electric-bike makers to downsize or seek buyers.”
The company has filed a pre-emptive WARN Alert, which is allowed by businesses who want to alert the state that they might be closing. Rad has raised some capital, and is seeking some investors, and perhaps a buyer.
Rad features a wide range of models, prices vary from around $499-599, to $1,799.
E-bikes, which offer pedal and electric power remain popular, but not at the white-hot rate they were selling during the pandemic.
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