Seattle-based e-bike giant Rad Power Bikes is at risk of closing its doors as early as January 2026 if it fails to secure new funding, according to recent reports.
The company, once a leading name in the North American e-bike market, has informed employees and filed a Worker Adjustment and Retraining Notification (WARN) with Washington State, signaling potential layoffs of 64 staff members.
Financial Challenges and Failed Funding Deals
A promising deal that could have saved the company fell through, leaving Rad Power grappling with significant financial hurdles.
These challenges include high tariffs on imported components and a slowing e-bike market post-pandemic, which have severely impacted the company’s bottom line.
A Storied History of Growth and Decline
Founded in 2007, Rad Power Bikes rose to prominence during the pandemic as demand for electric bicycles surged, earning it unicorn status as one of Seattle’s top consumer hardware startups.
However, the company has faced multiple rounds of layoffs in recent years, reflecting broader struggles within the industry to adapt to changing economic conditions.
Impact on Employees and Customers
The potential closure could leave employees in Washington and beyond without jobs, while customers may face challenges accessing replacement parts or support for existing bikes.
This news also raises concerns for the broader e-bike industry, as Rad Power’s collapse could signal tougher times ahead for similar companies.
Looking to the Future
Despite the grim outlook, Rad Power Bikes is reportedly still exploring viable options to save the company and continue operations.
The outcome of these efforts remains uncertain, but a successful funding round could potentially turn the tide for this once-thriving brand.
For now, stakeholders and fans of sustainable transport solutions can only hope that Rad Power finds a way to navigate these financial storms.
Andrew Lee
