Rad Power gives up on European e-bike market and focus on U.S. instead

Rad Power gives up on EU e-bike market and focus on U.S. instead
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    Rad Power announces concentration of operations in the United States

    According to state media reports, on July 10, 2023, Rad Power announced that it would close its European market operations and shift its focus to the North American market.

    With the closure of the European market, Rad Power Bikes expects to lay off dozens of employees and stop European sales by 2024, focusing entirely on the North American market.

    And it will also stop selling e-bikes to customers in the United Kingdom and the European Union starting in 2024.

    Rad Power announces concentration of operations in the United States

    Europe has long been considered the largest market for e-bikes, based on its strong cycling culture and large consumer base.

    With cycling crowds everywhere and a cycling culture for all ages, bicycles have become a distinctive symbol of Europe, and the industry has developed as smoothly as many organizations predicted.

    Europe has even set off a “cycling fever”, with many manufacturers flocking to Europe under the impetus of various factors.

    And Europe has become the first choice for many bicycle and electric bike manufacturer to develop their business. Europe has become the first choice for many bicycle manufacturers to develop their business.

    However, after a large number of products have been imported into the market, Europe is now experiencing a period of high inventory.

    Rad Power-1

    The market is gradually saturated so that many manufacturers have to reduce prices and take measures to reduce costs such as large-scale layoffs.

    At this time, the rise of the North American market began to focus on a new market with great potential.

    On the other hand, the old market tends to be saturated, the advantages and disadvantages of which are immediately obvious.

    North America has become another piece of cake for vendors to fight for.

    Since the launch of its flagship Rad Rover fat tire electric bike in 2015, Rad Power bikes have grown rapidly to become the largest electric bike brand in North America, and then expanded to the European market.

    The company plans to double its team size by the end of 2021, but the market situation has taken a sharp turn for the worse.

    In the wake of the global slowdown that followed the outbreak, the company has had four rounds of layoffs since April 2021, cutting 100 jobs.

    Rad Power -2

    More employees were laid off in July 2022, followed by a third round of layoffs in December and a fourth in April 2023, leaving the company in a precarious position.

    In addition to the layoffs, the company has faced many other situations, including wrongful death lawsuits, property damage lawsuits, and a recall of nearly 30,000 electric cargo bikes due to tire safety issues.

    The frequent e-bike fires that followed have put the e-bike industry on the internet buzz, with government regulation of the industry becoming more stringent.

    Rad Power has long been considered the largest e-bike maker in the U.S., but its market share in North America has been squeezed by the emergence of competitors, with sales of the Lectric e-bikes brand growing so fast that industry analysts say Lectric could match or even surpass Rad’s sales.

    The North American market is Rad Power’s main focus, and Rad Power says, “Over the past few months, we have conducted an in-depth evaluation of our global operations.

    After an extensive review of market scenarios, to maintain our competitive advantage and long-term success, we must close our operations in Europe and focus our resources and efforts on growing our North American business.”

    Rad Power’s ability to maintain its leadership position in the North American market would not have been possible without the large customer service team it originally built and the breadth of accessories in its extensive lineup.

    Phil Molyneux, CEO of Rad Power Bikes

    It has been predicted that if the company refocuses all its energy on the North American market, these two areas will become its key strategies, along with an expanded marketing reach.

    Rad Power CEO Phil Molyneux also promised to continue to set the standard for the e-bike revolution in North America and to remain truly focused on safety, reliability, continuous innovation, future-proofing, and providing customers with the highest quality products at affordable prices.

    New U.S. standards to address e-bike fire issues

    Fire incidents involving micro-mobility products have increased in recent years, with a number of incidents resulting in serious consequences.

    On April 10th, a serious fire caused by an e-bike battery in an apartment building in New York City killed two children, and these types of malicious safety accidents have been rare and far between.

    So far this year, there have been 59 e-bike fires in the United States.

    Last year, the New York Fire Department investigated 220 fires caused by lithium-ion batteries, resulting in 147 injuries and six deaths.

    That’s why the e-bike battery safety issues becoming so important.

    Fires have become the biggest obstacle to the development of the micro-mobility industry, and new modes of transportation that are supposed to be convenient for people to get around have become a great threat to consumers’ personal safety.

    In order to put an end to such safety hazards, the U.S. CPSC introduced a new standard for the certification of electric bicycles, with a strong force on non-standard products to rectify.

    On March 2, the U.S. City Council of New York passed a legislative plan for lithium-ion battery safety that strongly requires electric mobility devices such as e-bikes, e-scooters, and other electric mobility devices, including their battery packs, to be third-party certified by an authorized laboratory.

    New U.S. standards to address e-bike fire issues

    And this move also improve the e-bike laws in the U.S.

    The use of product standards specifically includes:

    1. UL 2849 Standard for electrical systems for electric bicycles.

    2. UL 2272 Standard for Electrical Systems for Personal Electric Mobility Equipment.

    3. UL 2271 Standard for Batteries for Light Electric Vehicles (LEVs).

    The regulations will take effect on August 29, 2023.

    To ensure the safety of micro-mobility devices or light electric vehicles for consumer use, the CPSC sent a letter to all citizens of the U.S. light electric vehicle industry, including manufacturers, importers, wholesalers, and retailers.

    And these will urge them to ensure that the light electric vehicles they sell are designed and manufactured to meet specialized safety standards (UL 2272/UL 2849) and to obtain certification.

    Products that do not meet the certification will not be sold after the regulations officially come into effect.

    It is understood that the new certification standards for electric bicycles will first be implemented in the state of New York.

    The future may be that the standard will be implemented throughout the United States and even the entire North American market.

    Then all do not meet the certification of the product in North America and even the various e-commerce platforms will not be able to sell. Manufacturers will also face significant risks.

    UL certification covers the complete electrical system of the e-bike, including batteries, motors, chargers, etc. The FDNY also said it will consider adding additional certification to safety standards.

    Chocolatezhu
    Chocolatezhu
    Hi, I'm an experienced writer about mechanic and an expert on bike and e-bike tech who appreciates practical, beautifully-engineered things. And of course, I love cycling.
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