Rad Power Bikes is leaving Europe.
The Seattle-based startup confirmed that it will cease selling its electric bikes to customers in the United Kingdom and European Union starting in 2024. The company said it also plans to lay off “fewer than 40 employees,” marking its fifth round of job cuts since April 2021. It did not provide an updated headcount.
Rad first launched an office in Europe six years ago. The closure is part of a broader effort by Rad CEO Phil Molyneux to reign in spending and focus on safety. The company has faced multiple challenges recently including a wrongful death lawsuit, a lawsuit related to property damage, and the recall of nearly 30,000 units due to a safety issue.
“Over the past several months, we have conducted an in-depth evaluation of our global operations,” a company spokesperson told GeekWire Wednesday. “It has become apparent that in order to sustain our competitive edge as North America’s largest ebike brand and achieve long-term success, we must focus our resources and efforts on growing our business in the North American market.”
The latest job cuts follow four previous rounds of layoffs. Rad slashed 100 positions in April 2021, then made another 63 cuts in July 2022; its third round of layoffs came in December and fourth in April.
Rad launched in 2007 and began selling e-bikes directly to consumers through online sales in 2015. It grew into the leading e-bike seller in North America and raised $304 million in 2021. Rad saw big demand amid the pandemic as more people bought e-bikes.
The company was valued at $1.65 billion in October 2021, according to PitchBook, making it one of a handful of “unicorn” startups in the Seattle region.
Mike Radenbaugh, who helped start the company in 2015, stepped down as CEO in November and is now board chairman. Molyneux, previously president at Sony Electronics and Dyson America, was hired as president and chief operations officer last year.
Rad 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.
