Rad Power Bikes, a leading US-based electric bicycle retailer, has just announced that it is closing its New York City retail store.
The company didn’t give an exact date for the closure but confirmed yesterday that the Brooklyn-based Rad store would be sunsetted.
The retail location has operated for over a year and was part of Rad’s expansion into brick-and-mortar stores. That strategy sought to expand Rad’s US retail presence to provide prospective customers with local shopping, servicing, and test ride opportunities. It was seen as a power move that smaller brands wouldn’t be able to match, helping Rad maintain an edge over the wave of low-cost yet lower-quality brands entering the US market.
Other Rad Power Bikes retail locations have opened in Seattle, Denver, Salt Lake City, St. Petersburg, Berkeley, Santa Barbara, Huntington Beach, and San Diego, according to Geekwire.
The news also comes after several rounds of layoffs at the company and the announcement of the closure of Rad’s European operations by the end of this year.
Those successive cost-cutting rounds have been seen as belt-tightening measures in the post-Covid years, when high electric bike sales have fallen off and left some e-bike makers overextended.
Most e-bike companies have reported overstock situations and have been left with larger teams after hiring sprees during the post-pandemic bike boom.
The company confirmed that its New York City store closure is intended to help it operate more efficiently:
“The Rad Power Bikes team has worked diligently to ensure the company is in the best position possible to navigate the realities of the current market and become a sustainable, enduring business. While we have made some difficult decisions over the last several months, it has become necessary to make organizational changes to drive further efficiency in our business.”
Rad Power Bikes has more e-bikes on the road in the US than any other company, but that large ridership also comes with its own challenges. The company is facing multiple lawsuits relating to safety concerns of its e-bikes and has also been forced to address issues with its customer service team being able to respond to its vast ridership quickly.
The company is currently , competing against a saturated market of e-bikes in an attempt to retain its large market share against smaller encroaching e-bike brands.
Rad Power Bikes’ current financial position is not clear as the company is privately funded by large VC funds and private firms. However, the several rounds of layoffs over the last few years, as well as pullbacks in Europe and the NYC store, speak to Rad’s focus on tightening up its operations.
Author: Micah Toll
Source: Electrek
