Rad Power Bikes is slashing 100 jobs from its 725-person workforce as part of what the Seattle e-bike business describes as a restructuring.
The cuts affect employees who helped power the company’s mobile services arm, which is shutting down, including those on the ground and at the Seattle headquarters. Rad offered customers repairs at their doorstep via mobile services; it will now partner with third-party providers Velofix and Beeline Connect to continue offering mobile support.
Rad sent a statement to GeekWire after we received a tip about the layoffs earlier Tuesday morning.
“Rad Power Bikes is restructuring to bring more focus to our online and retail stores and expanding our footprint with additional retail locations this year,” a company spokesperson said in the statement. “We will be closing the majority of our mobile services business as part of our growth strategy moving forward. As we build future stores, we will expand into the areas covered by our mobile business and beyond. With this adjustment, we will be able to continue offering the best ebikes at the best price, in-store and also online.”
Following the layoffs, Rad plans to hire 125 people this year to staff five new retail locations, adding to its existing stores in Seattle, Vancouver, B.C., San Diego, Berkeley, and Utrecht, Netherlands.
It has also hired a new president and COO, Phil Molyneux, former president at Sony Electronics and Dyson America. He was most recently CEO at Wrethink.
Rad continues to be led by CEO Mike Radenbaugh, a former director of product development at GolfBoard. The company’s co-founder Ty Collins stepped down last year.
Rad raised $304 million last year as part of two separate cash infusions to fuel its capital-intensive business. It was valued at $1.65 billion in October, according to PitchBook, making it one of a handful of “unicorn” startups in the Seattle region.
Rad saw big demand amid the pandemic as more people bought e-bikes. The company is also riding tailwinds from climate-related trends as people and companies look to lower their carbon footprint.
But like many other businesses, Rad has been dealing with supply chain issues. To help reduce delivery time, last year Rad bought 64 containers and worked closely with a logistics partner to charter its cargo into the Port of Everett near Seattle.
Rad declined to share new revenue metrics. The company said it surpassed $100 million in revenue in 2019.
The startup has more than 400,000 riders worldwide. It sells to commercial customers such as national pizza chains and food delivery companies, in addition to its consumer business.
The global e-bike market is expected to reach $118.6 billion by 2030, according to Allied Market Research. E-bikes are now a larger category than road bikes based on sales revenue, according to NPD Group.
Rad’s bikes top out at 20 MPH and range from $1,199 to $1,999, across nine models.
Other competitors including VanMoof have also raised capital in recent years to support demand.
The company’s investors include Fidelity Management & Research Company; Counterpoint Global (Morgan Stanley); Vulcan Capital; Durable Capital Partners LP; The Rise Fund (TPG’s multi-sector global impact investing strategy); and funds and accounts advised by T. Rowe Price Associates. Blue Nile and Zulily co-founders Darrell Cavens and Mark Vadon also invested in 2019.
