Rivian looks to growing e-bike category for profitability | WARC | The Feed

Rivian looks to growing e-bike category for profitability

Rivian, an electric vehicle maker, is working on an e-bike amid profitability woes in the electric car space, according to reports.

Why it matters

Electric vehicles come in more shapes than just cars and vans, which had been Rivian’s focus until now. A move toward e-bikes could help shore up some of the profitability and production problems that have dogged the company over the course of last year, leading to significant layoffs and even denting the balance sheets of its major investors (Amazon owns 20%).

Bloomberg, which first reported the news based on sources present at a company meeting, notes that it’s unclear whether the work is focused on a battery-assisted bicycle or on an e-motorbike.

Other car brands have made the move based on their manufacturing capabilities, and the huge growth of the e-bike market, which is set to outsell all electric cars in the US and all cars of any kind in Europe. However, there are signs that the cost-of-living crisis is hitting demand in certain markets.

While a more accessible product might drive volume, actually making enough bikes might remain a significant issue for Rivian.

E-mobility in focus: a B2B opportunity

Though the e-bike market has been booming, a shift to two wheels hasn’t yet improved the fortunes of other car marques that have broadened their product line.

Well-known brands like Mercedes, Jeep, and Porsche have all introduced an e-bike offer but have typically priced their products at the absolute top end of the market (way above the typical $1500 price point). Whether these do more for these brands than demonstrate a commitment to electrification and sustainability, remains to be seen.

Yet other car brands, such as Toyota, have targeted the electric cargo bike space, with the potential of speaking to a large and more stable business audience, as deliveries move to e-mobility.

Back in October, Rivian CEO RJ Scaringe pointed out this potential market in a conference appearance: “The e-bike space is something we’re super excited about. We haven’t announced anything or said anything there. But I do think it is going to play an increasingly important role for transportation, both in the movement of goods for commercial purposes, but also for the movement of people.”

Meanwhile, some of the more visible players in the space, such as Netherlands-based VanMoof, have targeted buyers weighing up the benefits of a car or an e-bike for personal transportation as part of a strategy based on shifting its competitive set.

It’s not yet clear whether this is possible for car brands. VanMoof, whose distinctive design and Apple-like simplicity have made it very popular among urbanites, still came close to financial ruin toward the end of 2022, only to secure new sources of funding.

Sourced from Bloomberg, WARC, WSJ, Electrek, Cycling Industry, Mercedes, Porsche, Cycling Weekly.