Rad Power Bikes, a popular American e-bike brand that has raised more than $300 million in the past two years, will start offering bikes as a subscription service next week. The company is partnering with Cycle, a Berlin-based e-bike subscription service that focuses on couriers and last-mile delivery, to test the Berlin offering.
From September 22, Cycle will rent two cargo bikes, the RadRunner and RadWagon, with a starting price of € 79.90 per month and the choice between a rolling monthly rent or an annual contract, according to Cycle.
This partnership is Rad’s first subscription game — the company was hyper-focused on direct-to-consumer sales, but aims to attract a new segment of customers who would rather pay to use an e-bike rather than own it entirely, according to Arno Saladin, European Business Director of Rad.
“With this pilot, we want to understand the magnitude of demand and the exact value these customers are looking for,” Saladin told TBEN. “This will help us determine the optimal value offering and demand potential.”
Partnering with Rad to offer a consumer-oriented subscription is also new to Cycle, formerly GetHenry. In its short life, the startup has primarily catered to the needs of last-mile delivery drivers and 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 started adding Rad bikes to its range in 2020.
“The unique look of Rad Power Bikes caught the attention of many people on the street,” Luis Orsini-Rosenberg, Cycle co-founder and CEO, told TBEN. “Since we added the vehicles to our fleet, not a week has gone by where we haven’t received an email from private customers asking to buy or rent them from us.”
Cycle has the on-site operations, bike maintenance and subscription infrastructure to make it work in Berlin, so Rad just needs to deliver the goods. Customers can collect their fully assembled e-bike from Cycle’s workshop in the trendy Kreuzberg district of Berlin. Service is of course included and repairs can be booked via the Cycle app. Paranoid customers can add a “peace of mind” package that would significantly reduce the deductible in the event of massive damage or theft.