Rad Power Bikes lays off 100 employees, about 14% of staff, after raising $304M last year

Rad Energy Bikes CEO Mike Radenbaugh. (GeekWire File Photograph)

Rad Energy Bikes is slashing 100 jobs from its 725-person workforce as a part of what the Seattle e-bike enterprise describes as a restructuring.

The cuts have an effect on workers who helped energy the corporate’s cell companies arm, which is shutting down, together with these on the bottom and on the Seattle headquarters. Rad provided clients repairs at their doorstep through cell companies; it can now associate with third-party suppliers Velofix and Beeline Bikes to proceed providing cell assist.

Rad despatched a press release to GeekWire after we obtained a tip concerning the layoffs earlier Tuesday morning.

“Rad Energy Bikes is restructuring to deliver extra focus to our on-line and retail shops and increasing our footprint with further retail places this 12 months,” an organization spokesperson stated within the assertion. “We shall be closing nearly all of our cell companies enterprise as a part of our development technique transferring ahead. As we construct future shops, we’ll increase into the areas coated by our cell enterprise and past. With this adjustment, we can proceed providing the perfect ebikes at the perfect worth, in-store and likewise on-line.”

Following the layoffs, Rad plans to rent 125 individuals this 12 months to employees 5 new retail places, including to its present shops in Seattle, Vancouver, B.C., San Diego, Berkeley, and Utrecht, Netherlands.

It has additionally employed a brand new president and COO, Phil Molyneux, former president at Sony Electronics and Dyson America. He was most just lately CEO at Wrethink.

Rad continues to be led by CEO Mike Radenbaugh, a former director of product growth at GolfBoard. The corporate’s co-founder Ty Collins stepped down final 12 months.

Rad raised $304 million final 12 months as a part of two separate money infusions to gasoline its capital-intensive enterprise. It was valued at $1.65 billion in October, in keeping with PitchBook, making it one among a handful of “unicorn” startups within the Seattle area.

The RadCity 5 Plus. (Rad Energy Bikes Photograph)

Rad noticed large demand amid the pandemic as extra individuals purchased e-bikes. The corporate can also be using tailwinds from climate-related developments as individuals and firms look to decrease their carbon footprint.

However like many different companies, Rad has been coping with provide chain points. To assist scale back supply time, final 12 months Rad purchased 64 containers and labored carefully with a logistics associate to constitution its cargo into the Port of Everett close to Seattle.

Rad declined to share new income metrics. The corporate stated it surpassed $100 million in income in 2019.

The startup has greater than 400,000 riders worldwide. It sells to business clients similar to nationwide pizza chains and meals supply corporations, along with its shopper enterprise.

The worldwide e-bike market is anticipated to succeed in $118.6 billion by 2030, in keeping with Allied Market Analysis. E-bikes are actually a bigger class than highway bikes based mostly on gross sales income, in keeping with NPD Group.

Rad’s bikes high out at 20 MPH and vary from $1,199 to $1,999, throughout 9 fashions.

Different rivals together with VanMoof have additionally raised capital lately to assist demand. 

The corporate’s traders embody Constancy Administration & Analysis Firm; Counterpoint International (Morgan Stanley); Vulcan Capital; Sturdy Capital Companions LP; The Rise Fund (TPG’s multi-sector international affect investing technique); and funds and accounts suggested by T. Rowe Worth Associates. Blue Nile and Zulily co-founders Darrell Cavens and Mark Vadon additionally invested in 2019.

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