E-Bike Market Sees Wave of Bankruptcies, Lectric eBikes Expands

In a counterintuitive move, Lectric eBikes, a Phoenix-based company, has launched three new brands this year, investing $10 million

Lectric eBikes Defies E-Bike Market Trends with Counterintuitive Expansion Strategy

Lectric eBikes, a Phoenix, Arizona-based company known for its practical and affordable XP series electric bikes, has launched three new brands so far this year — a Juiced Bikes relaunch, a new Juiced Powersports brand, and now a premium adventure brand called Monarc — an expansion strategy that runs counter to the wave of bankruptcies that have plagued the sector.

• According to CEO Levi Conlow, Lectric has put about $10 million toward these initiatives.
• "Others might be pulling back, or raising money, we're actually deploying and investing into initiatives like this," he said.
• "I actually don't think the market is saturated right now; Lectric last month had its biggest sales month in our company's existence and we sold almost 30,000 bikes."

E-Bike Market Sees Wave of Bankruptcies

The past two years have seen a slew of e-bike companies file for bankruptcy, shut down, or wither until they were snapped up by larger companies.

• Rad Power Bikes, the buzzy electric bike company that raised nearly $330 million in venture capital, was perhaps the highest-profile collapse.
• The company, once valued at $1.65 billion, filed for Chapter 11 bankruptcy protection in December.
• Its assets were acquired by Life Electric Vehicles Holdings for $13.2 million.

A Contrarian Playbook

• Lectric's CEO Levi Conlow has a contrarian backstory, having bootstrapped the business instead of raising venture capital.
• Conlow and co-founder Robby Deziel never raised venture capital, instead bootstrapping the business, which they founded seven years ago as childhood friends, before taking an investment from private equity firm Bertram Capital Management in 2020.

Lectric's Expansion Strategy

• The company sells 90% of its products direct to consumers through its website, which, depending on the month, attracts 2 million to 4 million visitors.
• Lectric has learned that keeping the brands separate is key to preventing dilution and ensuring customer service, branding, and marketing are specific to each product and company.

Monarc: A Premium Adventure Brand

Monarc is a premium adventure brand that will ship its first e-bike, called the Marker, in July. The e-bike features a Bafang motor, Shimano drivetrain, and a 3.5-inch color touchscreen that can sync with other accessories like rearview radar and smart helmets.

• Monarc is leaning on its premium adventure lifestyle features and customer service strategy that includes a five-year warranty and phone support with real humans.
• The Marker e-bike will come standard with two LG 48-volt 15Ah batteries that provide 720 watt-hours each and are UL 2271 certified.

The Future of Lectric eBikes

• Lectric's CEO Levi Conlow kept the prospect of launching new independent brands open.
• "We continue to explore and keep our eyes open." But he isn't in any rush. "We have made our plate very full, and we're going to stay focused on this."*