Rad Power Bikes and Cycle pilot consumer e-bike subscriptions • TechCrunch
Rad Power Bikes, a popular American e-bike brand that has raised more than $300 million over the past two years, will begin offering the bikes as a subscription service next week. The company is teaming up with Cycle, a Berlin-based e-bike subscription service that caters to couriers and last-mile delivery, to pilot the offering in Berlin.
Starting September 22, Cycle will provide two cargo bikes, the RadRunner and the RadWagon, for rent with a starting price of €79.90 per month and the choice between a rolling monthly rental or a year-round contract, according to Cycle.
The partnership is Rad’s first subscription play – the company has focused on direct-to-consumer sales, but wants to appeal to a new segment of customers who would rather pay to use an e-bike than own it , according to Arno. Saladin, Rad’s European Commercial Director.
“With this pilot, we want to understand the size of demand and the exact value these customers are looking for,” Saladin told TechCrunch. “This will help us determine what the optimal value offer and demand potential is.”
Partnering with Rad to deliver a consumer-focused subscription offering is also new for Cycle, formerly GetHenry. In its short life, the startup has primarily catered to the needs of delivery riders and last-mile fleets. Cycle has its own in-house developed cargo bike which is used by many of its fleet and courier customers, but in the spirit of diversity and choice Cycle has started adding Rad bikes to its lineup in 2020.
“The unique look of Rad Power Bikes has caught the attention of many people on the street,” Cycle co-founder and CEO Luis Orsini-Rosenberg told TechCrunch. “Since we added the vehicles to our fleet, not a single week has gone by that we haven’t received an email from private customers asking to buy or lease them from us.”
Cycle has the field operations, bike maintenance, and subscription infrastructure in place to run it in Berlin, so all Rad has to do is deliver the goods. Customers will be able to pick up their fully assembled e-bike from Cycle’s workshop in Berlin’s trendy Kreuzberg district. Service is of course included and repairs can be booked via the Cycle app. Paranoid customers can add a “peace of mind” package which would significantly reduce the deductible in the event of mass damage or theft.