What the business is
A Seattle direct-to-consumer electric bike brand that raised $329 million since 2007 and says it has over 600,000 customers
The bet
Rad can sustain itself and focus on safety and quality by concentrating on North America, where its brand is strongest, instead of Europe
Starting capital
$329M in private investment since launch in 2007
How it started
Rad opened an office in the Netherlands in 2017 to tap Europe's bike-friendly market. The pandemic boosted e-bike sales, but Rad later struggled in the slowdown.
What happened
Rad cut 100 jobs in April 2021, 63 in July 2022, then in December 2022 and April 2023, leaving 424 employees per LinkedIn. Phil Molyneux, ex-president of Dyson US, replaced founder Mike Radenbaugh as CEO in 2022 and in January 2023 sent customers a letter acknowledging mistakes. The company also faced lawsuits and a recall of nearly 30,000 electric cargo bikes with misaligned tires, and said it was pursuing UL certification ahead of a New York City law.
How it ended up
In July 2023 Rad announced that about 40 employees would be laid off by the end of the year and that it would stop selling to customers in the UK and EU in 2024, redoubling its focus on North America.
What has to be true
Sales slowed after the pandemic e-bike boom and Rad had to right-size costs
A recall and lawsuits damaged its reputation and made safety and quality its priority
Rad judged its brand to be strongest in North America, where it started
What can be applied
Molyneux framed the Europe exit as going 'back to our roots', cutting scope to sustain the company, rather than a defeat in Europe itself.
Aftermath
As of July 2023 Rad was winding down European sales for 2024 and refocusing on North America, with UL certification pending.
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