The recent filing of Chapter 11 bankruptcy by Rad Power Bikes is a striking reminder of how even a leading brand in a thriving market like e-bikes can face economic instability. This development marks a significant moment for entrepreneurs and startup founders who must grapple with the dynamics of scaling a business in a fluctuating economy. As a serial entrepreneur and someone who closely observes business trends, I find the collapse of Rad Power Bikes both instructive and cautionary.
Rad Power Bikes grew from a small operation into a major name, celebrated for their sturdy and reasonably priced electric bicycles. They were a household name, and yet they stumbled. Filing for bankruptcy and seeking a rapid sale may appear to be a series of last-ditch efforts. Let's analyze not just the demise but also crucial lessons from their trajectory.
What Happened, and Why?
Based on recent reports, Rad Power Bikes is looking to finalize a sale within 45, 60 days following their bankruptcy filing. The numbers paint a concerning picture: $32 million in assets versus $73 million in liabilities. A particularly troubling detail shows that over $8 million is owed to U.S. Customs due to unpaid tariffs, which the company disputes. The challenges didn't stop there. Sales for the company dropped precipitously, from $129.8 million in 2023 to $63.3 million in 2025.
Beyond the numbers, here are the five most critical contributors to their downfall:
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Reliance on Pandemic-Driven Demand
Much like Peloton and other high-demand products during COVID-19 lockdowns, Rad Power Bikes thrived in an environment of limited outdoor options and stimulus-driven spending. However, they did not prepare for the inevitable post-lockdown correction in consumer behavior. -
Faulty Safety Oversight
Less than a month before their filing, the Consumer Product Safety Commission (CPSC) issued a fiery warning about the risk associated with older batteries in Rad Power's e-bikes, 31 instances of fires were reported. Legal liability in product-based companies can spell doom if not addressed effectively. -
Rapid Scalability Without Sustainability
Scaling is seductive, but growth without securing the foundation can lead to collapse. While Rad Power raised an impressive $329 million in investments, much of this appears to have been burned through on operations without yielding long-term stability. Layoffs, changes in leadership, and shifting business models illustrate a company scrambling to stay afloat. -
Global Trade and Tariff Costs
As someone who has navigated the complexities of international trade, I recognize how devastating tariffs can be. Rad Power relied on overseas manufacturing, exposing them to increasing trade costs. This was compounded further by over $8 million owed in tariff-related dues. -
Competition and Market Saturation
With e-bike companies sprouting in every corner, from well-funded startups like VanMoof to big players like Sondors, the affordable and competitive landscape undermined Rad Power’s dominance. They could no longer rely on customer loyalty to justify their growing debt.
Lessons for Entrepreneurs: How to Avoid These Mistakes
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Diversify Revenue Streams
Don't put all your eggs in one "pandemic boom" basket. Businesses like Rad Power thrived because of situational demand. As the market cooled, they lacked alternate streams to compensate. My advice: build businesses that can weather all seasons. -
Prioritize Product Safety from Day 1
A single safety issue can unmake years of goodwill. Test, test, and test again. Skipping or minimizing this upfront cost might lead to significant legal settlements or costly recalls later. -
Be Wary of Scaling Too Rapidly
People often assume that more customers automatically equal more profit. Yet managing operational scaling, supply chains, and ROI is where so many startups overextend. As a founder, it's better to grow steadily and retain financial flexibility than overpromise and underdeliver. -
Have a Clear Tariff and Trade Plan
Trade regulations will always be a wildcard for those reliant on international suppliers. Alternative sourcing, lobbying for tariff reductions, or reshoring production lines are all strategic levers. If tariffs are unavoidable, ensure they are manageable within your cash flow strategy. -
Monitor Competitors Relentlessly
It might sound obvious, but failure to track industry shifts and competitors’ strategies is one of the most overlooked errors. Had Rad Power responded quicker to rival threats, their product range might have stayed relevant even as the market matured.
The Industry’s Next Chapter
The micromobility sector, which includes e-scooters, e-bikes, and electric skateboards, still holds great promise. That said, market demand has normalized post-pandemic, and investors are less inclined to throw cash at ventures with questionable profitability margins.
In Europe, I’ve seen e-bike companies flourish with small but dedicated customer bases. Their secret often lies in regionalizing supply chains and focusing on after-sales services instead of hyper-growth. Entrepreneurs eyeing this industry must remain hyper-aware of the following trends:
- Shift Away from Direct-to-Consumer: The D2C model that works wonders for fashion brands struggles in tech-driven sectors. Expect more competitors to move toward retail partnerships for wider customer reach.
- Battery Safety and Innovation: Battery technology is the Achilles' heel for almost every electric vehicle company. Robust investment here separates winners from debt-strapped competitors.
- Urban Sustainable Initiatives: Policy support for greener cities is expanding worldwide. Savvy entrepreneurs know how to align their brand narratives and operations with local governments.
Conclusion
Rad Power Bikes’ bankruptcy is not a death knell for the e-bike sector, but rather a cautionary tale for startups rushing to be category leaders without securing stability first. The fall echoes common missteps shared by many high-growth consumer product companies. As entrepreneurs, we shouldn’t just aim to mimic their rise; instead, we should extract critical lessons from their descent.
If you’re in, or considering entering, this space, meticulously address supply chains, safety protocols, and market adaptability. By doing so, your venture will stand not only as a business entity but as a reliable and impactful solution in a sustainable future.
Is your business prepared to navigate similar challenges? Start by auditing your growth strategy today. Sign up for exclusive workshops crafted by experienced founders.
FAQ
1. Why did Rad Power Bikes file for bankruptcy?
Rad Power Bikes filed for Chapter 11 bankruptcy due to $73 million in liabilities, declining sales, and challenges like unpaid tariffs and product safety issues, which ultimately strained its financial sustainability. Read more about Rad Power Bikes' bankruptcy
2. What is Chapter 11 bankruptcy?
Chapter 11 bankruptcy allows a company to reorganize its finances and operations while continuing limited business activities. This legal protection is often used to facilitate a sale or restructuring plan.
3. What are Rad Power Bikes' financial figures during bankruptcy?
The company reported $32 million in assets against $73 million in liabilities, with over $8 million owed to U.S. Customs for unpaid tariffs. Learn about Rad Power Bikes' financial situation
4. What is the timeline for Rad Power Bikes' sale?
Rad Power Bikes is looking to finalize the sale of its business within 45, 60 days as part of its Chapter 11 restructuring. Explore Rad Power Bikes' sale timeline
5. How did product safety concerns contribute to the bankruptcy?
Shortly before the bankruptcy filing, the Consumer Product Safety Commission (CPSC) issued warnings regarding fire risks from older Rad Power e-bike batteries, which led to reputational damage and legal liabilities. Read about Rad Power Battery safety issues
6. How significant was the post-pandemic market drop for Rad Power Bikes?
After benefitting from a pandemic-driven demand surge, Rad Power's sales dropped sharply from $129.8 million in 2023 to $63.3 million in 2025, mirroring the broader micromobility market contraction. Download insights on e-bike sales trends
7. What challenges did the tariff costs impose on Rad Power Bikes?
With over $8 million owed to U.S. Customs in disputed tariffs, trade costs from international manufacturing intensified the financial stress on the company. Review Rad Power's tariff challenges
8. Has Rad Power Bikes undergone leadership changes recently?
Yes, in March 2025, Kathi Lentzsch, known for turning around troubled companies, became CEO to help shift the company from a direct-to-consumer model to a retail-centered approach.
9. How does competition impact Rad Power Bikes' position?
Rising market saturation in the e-bike sector from companies like VanMoof and Sondors diluted Rad Power’s stronghold as new competitors entered with innovative, affordable products.
10. What lessons can entrepreneurs learn from Rad Power Bikes' story?
Avoiding over-dependence on temporary trends, implementing stringent product safety measures, and planning sustainable scaling are essential. Rad Power's trajectory underscores the importance of adaptability and financial prudence during market shifts. Learn strategic lessons from Rad Power Bikes
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.